As was reported Monday, the BASF plant in Ludwigshafen, Germany suffered a severe explosion and subsequent fire, causing at least 2 known deaths and 6 others to be severely injured. BASF’s Ludwigshafen site is their largest chemical plant and by their declaration of force majeure, there are significant ramifications for the chemical industry for the foreseeable future.
Force Majeure Delcared By BASF
In a notice published October 19, 2016, BASF has formally declared force majeure on deliveries of all their acrylic monomers, including the following:
Glacial Acrylic Acid
Glacial Methacrylic Acid
Methacrylic Acid Technical Grade
BASF notes that there will be great impacts on logistics and raw material availablity as a result of this accident. And as of today, there’s still no timetable on the duration of the delay in supply.
For further information, please read the ICIS article here. An excerpt from the report is quoted below.
BASF has declared force majeure on some aspects of its ethylene and propylene positions at Ludwigshafen following the explosion and fire on Monday 17 October, a source at the German chemical major said on Wednesday.
“We declared force majeure yesterday for different things,” the source said.
The company had declared force majeure on its propylene consumption from the MIRO refinery in Karlsruhe, around 70 km (43 miles) south from Ludwigshafen, “as we cannot take C3 through that pipeline.”
The source added that the Ethylene Pipeline Sud (EPS) ethylene transport pipeline had been affected and force majeure had also been declared to its partners.
The company source said that although the incident did not have a direct impact on either of the crackers’ ability to produce, the restriction on cracker feedstock deliveries had resulted in their shutdown. continue reading→
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