The Urethane Blog

LyondellBasell Force Majeure on Butadiene

Subject: Update to Force Majeure Event for Butadiene Unit at Equistar’s Channelview Plant




Dear Valued Customer,

As you know, on August 25, 2015, we experienced a force majeure event in the Butadiene (BD) extraction unit at our Channelview plant. As a result, we must allocate product, and in September, customers can expect to receive up to 50% of the monthly average of their BD purchases for the previous 6 months. All September volumes will ship in the second half of the month after resumption of BD production at our facility. In addition, any remaining August volumes not shipped by August 25th will be reduced to 40% of the original orders.

Please note that during the allocation period, no orders for additional BD volume will be fulfilled, and unused portions of monthly amounts cannot be added to any subsequent month’s amounts. The duration of the force majeure event and product allocation 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 Equistar Chemicals, LP as a supplier and we apologize for this disruption.

Thank you for your understanding and patience.