The Urethane Blog

Force Majeure Update from LyondellBasell

September 21, 2017

Subject: 1, 4 Butanediol (BDO) and Derivatives – Force Majeure Event

Dear Valued Customer,

As per the previous letter dated August 29, 2017, due to Hurricane Harvey, we have shut down
or partially curtailed the production of 1,4 Butanediol (BDO) and Derivatives at our
Channelview, TX plant, and have declared a force majeure event for 1,4 Butanediol (BDO) and
Derivatives. The original effective date of the force majeure event is August 29, 2017.

As a result of this event, Lyondell Chemical Company implemented a sales allocation on
September 5, 2017 for all 1,4 Butanediol (BDO) and Derivatives which became effective
September 1, 2017. Allocation volumes were determined based on purchases made in the prior
six (6) months; specifically, February through July 2017.

Effective October 1, 2017 allocation levels will be revised as shown in the Table below.

Product Allocation %
Allyl Alcohol (AA) Allocation Removed
1, 4 Butanediol (BDO) 100%
2-Methyl-1,3 Propanediol (MP Diol) 80%
N-Methyl-2-Pyrrolidone (NMP) Allocation Removed
Tetrahydrofuran (THF) 90%
Polytetramethyl Glycol, PolyMEG 1000® 100%
Polytetramethyl Glycol, PolyMEG 2000® 100%
Styrene Allyl Alcohol (SAA 100) Allocation Removed
Styrene Allyl Alcohol (SAA 101) Allocation Removed

Please note that during the period of allocation, customers will not be permitted to borrow ahead
of their monthly amounts and unused portions of monthly amounts cannot be added to any
subsequent month’s amounts. Additionally, allocations are subject to third party carrier
availability and other logistical infrastructure limitations, including, but not limited to, railcar,
tank truck, barge/vessel, and port availability, which may impact Product availability and delivery dates. The duration of the force majeure event cannot be determined at this time and the
percentage of allocation may change as new information becomes available.

As always, your account manager is available to address any questions or concerns you may
have regarding this force majeure event. We value the trust you place in Lyondell Chemical
Company as a supplier and we apologize for the inconvenience this may cause you.

Thank you for your understanding and patience.