Abstract
A series of events, including plant explosions and floods, have led to a tightening of propylene supply. This may lead producers in the propylene chain, especially producers of downstream products such as polypropylene, to limit further the amount of product they can provide customers. In the fourth quarter of 1994, some people were on [propylene] allocation at different times, says Fred Wulff, olefins director at Phillips Chemical, a subsidiary of Phillips Petroleum. That was because October floods in the Houston area temporarily shut down Chevron Chemical's olefins operations, and ethylene cracker explosions caused temporary olefin plant closures at Exxon Chemical's Baton Rouge, La., facility and Shell Chemical's Norco, La., facility. These extraordinary events cut into inventories of propylene, which is coproduced with ethylene. Exxon declared force majeure on propylene soon after the Aug. 8 fire at its Baton Rouge facility. But Exxon did not begin sales control on its propylene ...
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