Shell Chemicals Europe Declares Force Majeure on Propylene Oxide Glycol Ethers Supply

Shell Chemicals Europe (SCE) has recently declared force majeure on the supply of propylene oxide glycol ethers from its plant in Moerdijk, the Netherlands. This decision was made due to a feedstock shortage, as reported in a customer note seen by OPIS on Friday.

Supply Shortage Causes Force Majeure Declaration

The shortage in propylene oxide feedstock was a result of limited production by one of SCE’s suppliers. A fire at a wastewater treatment facility led to decreased supplies of the necessary feedstock for propylene oxide glycol ethers (POGE) manufacturing at the Moerdijk plant. Consequently, Shell Chemicals Europe found it necessary to declare force majeure.

Limited Options for Shell Chemicals Europe

According to the customer note, SCE has no viable alternative but to reserve the right to declare force majeure on the delivery of Propylene Oxide Glycol Ethers. The company is left with no choice given the circumstances caused by the feedstock shortage.

Shell Chemicals Europe’s Response

Shell Chemicals Europe has chosen not to provide further information regarding the force majeure declaration, stating that it does not comment on the performance of individual plants associated with its energy and chemical facilities.

Production Capabilities at Moerdijk

The Moerdijk plant where Shell Chemicals Europe operates is one of the largest chemical complexes in both the Netherlands and Europe. Besides producing ethylene oxide and glycols along with other downstream petrochemicals, it has the capacity to manufacture 200,000 metric tons per year of propylene oxide, making it a significant site for chemical production.