DATE : 2014-01-09

Butadiene deliveries from Total in France were expected to return to normal by the end of January, consumer sources told Platts Thursday.

A force majeure in place since strike action in December, was expected to be lifted soon, they said. Industrial action at the Gonfreville refinery in France ended on December 27. Total would not comment on its operations.

"News is better than I thought. They hope to restart earlier than planned...I think that they will be up by the time of the start of the (February butadiene) negociations. They are producing at Lavera and from Feyzin," a consumer source said.

"We are getting product, but it is reduced," the source said. We had to find 600-700 tonnes in December and that was findable, even though it was difficult."

A second consumer source, who also expected a January restart, said he has been receiving deliveries from Total since the start of January, adding: "The plant is more on a ramp-up phase now".

Both sources said mechanical issues at Lavera, the Total-Ineos plant, were now revolved. "They solved the labor issue at Gonfreville but they had a mechanical issue and they declared FM (force majeure) and it is still in FM due to mechanical issues," the first consumer said.

The Gonfreville site produces 60,000 mt/year of butadiene, while the Lavera JV unit has a capacity of 50,000 mt/year.

SOURCE Platts