MOSCOW (MRC) -- PetroChina Dushanzi Petrochemical, an affiliate of the Chinese petrochemical giant PetroChina, has unexpectedly shut part of its polypropylene (PP) and polyethylene (PE) plants on 15 December due to a fire at the upstream unit that leads to a compressor failure at the polyolefin plant, reported CommoPlast with reference to market sources.
The affected production lines include two old PP plants with a combined capacity of 140,000 tons/year, a 100,000 tons/year old PE unit, and a 100,000 tons/year standalone high density polyethylene (HDPE) line.
There are no confirmations on the restart date at the time of this report. Sources said that depending on the repairment at the upstream plant, the company might take between a week to two months to come back online.
Players are not expecting a major impact on the market given the size of the plant and the current sluggish demand condition in China.
As MRC wrote before, state-owned PetroChina plans to spend about Yuan 10 billion (USD1.49 billion) annually in the next five years for low carbon emission transitions as part of the company"s effort to meet Beijing"s call for carbon neutrality by 2060.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only HDPE and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC