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Severe Weather Hits Houston-Area Petrochemical and Resin Producers
01/24/2023


Severe storms and tornados swept across the greater Houston area today, impacting some petrochemical and resin producers in the process.

Below is a list of process upsets from Tuesday per a Houston area community hotline:

TotalEnergies La Porte; Process upset reported and under control. flaring has been significantly reduced.

Braskem La Porte; A process upset occurred and the company is performing a controlled shutdown due to the weather. Flaring may be noticeable to the community, and the company is working to resolve the issue as soon as possible.

PEMEX Deer Park; The site is experiencing operational upsets that is causing flaring events.

Dow Chemical Deer Park; Process Upset incident occurred at the facility.

Shell Deer Park; The company said it was experiencing an incident due to severe weather.

The storm-related incidents come as Polyethylene producers look to increase prices in January by about $.03-.05/lb and again in February by another $.03-.05/lb. Polypropylene producers are also looking to implement January margin increases of $.03/lb, alongside an expected $.10/lb cost push from the upcoming January monomer contract settlement. Production has already been reduced following Winter Storm Elliot in late December, which resulted in two PE producers (Chevron Phillips, Ineos) and two PP producers (Ineos, Pinnacle Polymers) declaring force majeures.

By The Plastics Exchange.

Photo Source: Mark Mulligan/Houston Chronicle



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