Chevron Philips Chem Declares Force Majeure on Polyethylene Supply

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Chevron Philips Chemical Plant has sent a letter to their customers on Monday declaring a force majeure on Polyethylene supply.

The letter was sent a week after a fire at the Port Arthur Plant.  The fire injured two workers and caused a steam cracker to go offline.  Chevron Philips Chemical Plant told customers that the shutdown was affecting its ability to supply ethylene.

The letter read, "Please be assured that CPChem will work diligently to minimize the impact of this event on your business and return to full polyethylene deliveries as soon as possible."

The US PE market is tight due to mulitple production and supply issues from producers that are limiting supply.

Chevron Philips says they are working to resove the issue.