Spanish energy and petrochemical producer Repsol has experienced a reduction in styrene production at its propylene oxide/styrene monomer (POSM) unit in Tarragona, Spain. The decrease in production is a result of a fire that broke out at the end of November, which disrupted the availability of the ethylene feedstock.
According to market sources, Repsol declared force majeure on styrene deliveries from the site on November 23, following a leak at the ethylene cracker that supplies the feedstock for the POSM unit. Details regarding the incident have not been provided by Repsol.
The Tarragona plant has the capacity to produce 200,000 metric tons per year of propylene oxide and 450,000 metric tons per year of styrene. However, due to technical problems and the drastic reduction in production, the availability of POSM, polyolefins, and glycols in Tarragona has been limited.
Despite the decrease in supply from Repsol’s POSM unit, the European styrene market remains adequately supplied, as imports from the U.S. market have compensated for the supply shortfall. Approximately 40,000 metric tons of styrene are expected to be shipped from the U.S. to northwest Europe and the Mediterranean in December.
Styrene is an essential component used in the production of various consumer products, including food containers, tires, and building insulation.
Reporting by Fahima Mathé; Editing by Rob Sheridan.
