Pipeline migration might affect CPC's ethylene supply

According to market sources, Taiwan’s CPC is planning to migrate its ethylene pipelines in Kaohsiung area as to clear groundwork for a railway project. The company has obtained permission from the Kaohsiung municipal to carry out the necessary work in 50 days, starting end of November 2016.

These pipelines mainly transport ethylene from CPC’s cracker to buyers in Renwu area, including Formosa’s 500,000 tons/year VCM plant, China Man-Made Fiber Corporation’s 200,000 tons/year ethylene glycol (EG) plant and Grand Pacific Petrochemical Corporation’s 370,000 tons/year styrene monomer (SM) plant.

To avoid any production disruption, CPC is working with buyers to find alternative transportation method with a market source informed, “There might not be significant impact on our production, however the discussion has yet to yield final result. Therefore, we need to follow up very closely.”