Shell-CNOOC China joint venture to close steam cracker due to feedstock disruption, sources say

Reuters03-06 18:38
Shell-CNOOC China joint venture to close steam cracker due to feedstock disruption, sources say

SINGAPORE, March 6 (Reuters) - Shell's SHEL.L south China-based petrochemical complex, a joint-venture with China's CNOOC, plans to shut a steam cracker "soon" and has told domestic customers it's unable to supply some products, according to two people with direct knowledge of the matter.

CNOOC and Shell Petrochemicals Company Limited, or CSPC, plans to close a 1.2 million metric ton-per-year (tpy) cracker situated in Huizhou city of Guangdong province, one of its two crackers with total capacity of 2.2 million tpy, due to disruptions in feedstock supplies, the sources said.

In a notice to a local customer seen by Reuters, CSPC said supplies of polyethylene will be suspended for an unspecified period from March 5 due to "facility shutdown", citing the Middle East conflict and feedstock supplies.

A Shell China spokesperson declined comment.

(Reporting by Chen Aizhu and Trixie Yap;Editing by Elaine Hardcastle)

((aizhu.chen@thomsonreuters.com; Reuters Messaging: aizhu.chen.reuters.com@reuters.net))

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