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Cold Wave Causes Output Reduction in a Few Chemical Manufacturers in the USA

2024-1-30

Recently, S&P Global Commodity Insights stated in its compiled corporate report that some petrochemical producers along the Gulf Coast of the United States have closed some petrochemical facilities or reduced production capacity due to extreme cold weather.

Affected by the cold wave, temperatures in many parts of Texas dropped below zero degrees. Under low temperatures, ExxonMobil¡äs polyolefin factory in Baton Rouge has been suspended due to operational issues. ExxonMobil is located at the Baton Rouge olefin plant with a total polyethylene production capacity of 1.7 million tons per year, most of which are high-density polyethylene and linear low-density polyethylene.

According to a report by Ineos, its olefin unit located in Chocolate Bayou is undergoing maintenance work, which is expected to bring brief reduced production. The production capacity of the two olefin units in this factory totals 2.2 million tons per year. The Texas Environmental Quality Commission reported that given production conditions, the torches in both devices were properly burned. Ineos explained, " Before severe weather in the coming days in Texas, the company has taken proactive measures to minimize emissions, including on-site winter procedures. It is expected that this incident will not have any impact off-site."

LyondellBasell Industries informed its customers that the company is taking measures to cope with freezing weather when there may be inventory disruptions and transportation issues in the polymer supply chain in the United States due to adverse weather-related events. The company has an annual polyolefin production capacity of 2.5 million tons in the Gulf Coast region.