The cut in low density polyethylene allocation from Qatar Petrochemical Company, or Qapco, in September is expected to increase tightness in Asia.
A source from Total Petrochemicals, which markets both Qapco and Qatofin products, said that supply of PE material from both companies has been cut this month.
"The cracker problem that started in August has affected supply of LLDPE from Qatar," said the source, referring to the reduction of ethylene feedstock from the Ras Laffan Olefins ethane cracker.
The Ras Laffan cracker supplies feedstock ethylene to the PE lines in Mesaieed via a pipeline.
"LDPE supply is also tight," he said.
Another market source said that the Qapco LDPE allocation for September shipments appeared less than usual.
"Production in the Middle East during the summer months are generally lower due to the high heat affecting the plants," said the source.
Other media had earlier reported that Industries Qatar confirmed that Ras Laffan Olefin Company's 1.3 million mt/year ethane cracker has reduced operating rates until the middle of 2011 due to a technical issue.
Qapco, RLOC or Industries Qatar were not available for comment Tuesday.
Qatofin runs a 450,000 mt/year LLDPE at Mesaieed, while Qapco has two LDPE lines with a combined capacity of 360,000 mt/year.
Qapco is a joint venture between Industries Qatar (80%) and Total Petrochemicals (20%), while Qatofin is a JV comprising Qapco (63%), Total Petrochemicals (36%)and Qatar Petroleum (1%).
Ras Laffan Olefins is a JV between Qatar Chemical Company II Ltd, or Q-Chem II, (53.31%), Qatofin (45.69%), and Qatar Petroleum (1%).
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
