Shell Chemicals Europe has declared force majeure on the supply of propylene oxide glycol ethers from its plant in Moerdijk, the Netherlands, due to a feedstock shortage, according to a customer note seen by OPIS on Friday.

One of SCE's suppliers was reported to have limited production of propylene oxide following a fire at a wastewater treatment facility. This reduced supplies of the feedstock needed for POGE manufacture to SCE, which in turn caused the chemical producer to declare force majeure.

"SCE has no alternative other than reserving the right to declare Force Majeure on the delivery of Propylene Oxide Glycol Ethers," the note said.

Shell Chemicals Europe didn't provide any information concerning a force majeure declaration, saying it does not "comment on the performance of individual plants" on its energy and chemical facilities.

The company can produce 200,000 metric tons/year of propylene oxide at the Moerdijk site.

Moerdijk is one of the largest chemical complexes in the Netherlands and Europe. It also contains the butadiene chain plants, and the aromatics extraction and styrene units. SCE produces ethylene oxide and glycols and other downstream petrochemicals at the same site.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Fahima Mathé, fmathe@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com

(END) Dow Jones Newswires

October 06, 2023 13:20 ET (17:20 GMT)

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