Hard Freeze in Texas – Notice of Excuse by Failure of Presupposed Conditions or Force Majeure by Indorama Ventures

In Pricing by PattyH

Much of the US Gulf Coast, including Texas and Louisiana, has been impacted by extreme cold weather, ice and snowstorms, sleet and freezing rain. These weather events have caused power outages, led to the curtailment of utilities by various suppliers (such as power and natural gas), curtailment or unavailability of industrial gases, and dangerous, impassable, and/or closed roads and logistics routes, forcing us to shut down our manufacturing facilities in Port Neches, TX. This shut down prevents us from performing as required under various manufacturing and supply contracts. As a result, Indorama declares Force Majeure under all contracts requiring Indorama to manufacture, supply or otherwise deliver:

(i) PROPYLENE OXIDE (ALL GRADES and SPECIFICATIONS);
(ii) PROPYLENE GLYCOL (ALL GRADES and SPECIFICATIONS); and
(iii) METHYL TERTIARY BUTYL ETHER – MTBE (collectively, “Products”).

This Force Majeure is effective as of February 14, 2021 at 12:01am. Because these weather events are still unfolding and evolving, we are unable to estimate the duration or the impact of this Force Majeure declaration. We
will strive to promptly update you of all material developments as soon as they occur. As the magnitude of these weather events becomes clearer and ascertainable, we will notify you of any allocation impacting the manufacture, supply or delivery of Products to you for the remainder of the month of February or longer, as applicable.

In the meantime, we are taking all reasonable measures to protect our facilities from any long-term impact that these weather events may cause. We expect to start up and resume operations as soon as reasonably practical after the weather conditions subside, consistent with our commitment to the safety of our employees and the communities in
which we operate.

Click here to see the official announcement.

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