The Urethane Blog

Lyondell Operations Improving

March 30, 2021
Subject: Propylene Oxide & Derivatives – Force Majeure Event


Dear Valued Customer,


Per the previous letter dated February 16, 2021, Lyondell Chemical Company declared a force majeure
event for all products within our Americas Propylene Oxide & Derivatives Portfolio – Propylene Oxide,
Propylene-Glycols, Allyl Alcohol, Butanediol & Derivatives, Propylene-Series Glycol Ethers and
Propylene-Specialties Glycol Ethers, effective February 16, 2021.


In a letter dated February 25, 2021, Lyondell Chemical Company announced a sales allocation for
Propylene Glycol, effective March 1, 2021. For the foreseeable future, Lyondell Chemical Company is
updating the previously announced sales allocation for Propylene Glycol, as outlined below. Allocation
volumes have been determined based on customer’s average monthly purchases for the previous 6 months
(August 2020 – January 2021). This allocation will be effective April 1, 2021.


Product Allocation
Mono-Propylene Glycol Industrial Grade (PGI) 90%
Mono-Propylene Glycol USP/EP Grade (PG USP/EP) 90%
Di-Propylene Glycol Industrial Grade (DPGI) 100%
Di-Propylene Glycol Fragrance Grade (DPGF) 100%
Tri-Propylene Glycol (TPG) 80%
Tri-Propylene Glycol Acrylate Grade (TPGA) 80%


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, terminal and port
availability, and production status of our manufacturing facilities, any of which may impact Product
availability, delivery dates, and order fulfillment. 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.