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Argentina energy shortages slow petrochemical production




Platts

Buenos Aires
Petroleumworld.com 06 27 07

Argentina's chemical and petrochemical companies are slowing production
because of a shortage of power and natural gas, executives and industry
insiders said Friday.

"We are getting gas but there is less pressure at times of peak demand,
from early morning and through the day," Enrique Buj, a director and co-owner
of Aislantes de Cuyo in the western province of Mendoza, told Platts.

The limits in gas pressure means the company's machines for making
expandable polystyrene are working at less capacity at its 1,200 mt/yr plant,
he said.

At Petroquimica Cuyo, the situation is similar. The polypropylene maker
has had to suspend the operation of its extrusion line for five hours a day
since gas and power shortages started hitting factories in late May, a
spokeswoman said.

"We are experiencing some restrictions in gas and electricity supply so
we have had to slow our rhythm of production," the spokeswoman said.

She estimated that the company's plant, also in Mendoza, is operating at
20% of its 120,000 mt/yr capacity.

"This will continue through winter," which runs until September, she
said.

Because of the energy problems, Buj said Aislantes de Cuyo is unable to
crank up production to meet surging demand for EPS in domestic and exports
from the construction and container markets.

If more gas pressure was available, "we could produce more and export
more," Buj said.

Because of the rising demand, the company is considering building another
EPS plant in one to two years, provided energy supply is sufficient, Buj said.

--newsdesk@platts.com

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Platts 26 06 07

Copyright© 2007 Platts. All Rights Reserved.

 

 

 

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