MOSCOW (MRC) -- Dow has reduced run rates to 90% at its Argentinian cracker amid government-imposed natural gas curtailments, as per Plastemart with reference to a company source in Platts.
Every winter since 2006, the Argentinian government has curtailed ethane and LPG supplies to industrial users by up to 30%, and the start of this winter's cuts kicked in over the weekend. Dow "began following processing restrictions (imposed) by the authorities that manage the country's energy," the source said. The reduced run rate was not due to any ethane shortages from Mega, Dow's main feedstock supplier, or any issues at the joint venture's plants. The restrictions began to diminish considerably thanks to imports of gas and new gas supplies, both conventional and unconventional. "We hope that similar to 2014, fewer restrictions will happen this year," the source said. Dow
Argentina has been looking to North America for ethylene prior to the reduction in run rates, market sources say.
Dow Argentina operates two ethane-fed steam crackers and polyethylene production at its Bahia Blanca petrochemical complex. Ethane is a natural gas liquid used in the production of ethylene, which can then be transformed into polyethylene.
Dow's Bahia Blanca site has an ethylene production capacity estimated at 765,000 mt/year, according to Platts Analytics data. Petrochemical producers in Argentina see feedstock supply curtailments during the winter months, when heating and other residential use tends to be at its highest, the source said.
As MRC reported earlier, in November 2014, The Dow Chemical Company announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company’s market-driven, integrated strategy. On track to complete its goal of realizing USD4.5 billion to USD6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to USD7 billion to USD8.5 billion to be complete by mid-2016. Since 2013, the company has generated USD2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.
The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
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