Indonesia’s Pon shuts 2-EH plant for repairs

OREANDA-NEWS. October 12, 2015. Indonesian oxo-alcohols producer Petro Oxo Nusantara (Pon) is shutting down its 2-ethylhexanol (2-EH) plant at Tuban today for emergency repairs.

The east Java plant, with 2-EH production capacity of 135,000 t/yr, is expected to be shut for five days as the company seeks to repair minor leaks.

The shutdown is expected to increase propylene availability in southeast Asia this week. Pon is paying demurrage for some propylene cargoes it has bought for arrival at Gresik port in east Java.

Pon is one of the three spot propylene buyers in Indonesia along with acrylic acid producer Nippon Shokubai Indonesia and polypropylene producer Chandra Asri. The company buys 100pc of its propylene on a spot basis.

Propylene prices in southeast Asia were last assessed at \\$460/t cfr southeast Asia, the lowest level since at least November 2008. The region, along with northeast Asia, is currently facing an oversupply of propylene.