Wugong Island's 1.1 million-ton ethylene plant lifts force majeure, olefin supply picks up

Asialand was established as a joint venture between Indonesia's Chandra Asri and Glencore. The Bintoku Island cracking plant has an annual ethylene production capacity of 1.1 million tons, and is an crucial core olefin production base in Southeast Asia.

Previous disturbance factors: Dual factors triggered force majeure, continuing to impact the Asia-Pacific chemical chain

The plant had declared force majeure twice before. On one hand, the maintenance period of the plant was extended, and on the other hand, the transportation of naphtha raw materials was blocked due to the geopolitical conflict in the Middle East. The dual pressure caused the delivery of ethylene and propylene to be restricted.

During the suspension of plant supply, it continued to disrupt the Asian olefin, polyethylene and polypropylene manufacturing chains, pushing up regional chemical product prices.

Market impact: Gradual return of supply to ease regional supply tightness

At present, the raw material transportation channel has been opened, the plant operation has stabilized, and the enterprise has notified downstream customers to cancel the force majeure restriction, and will gradually resume product delivery in accordance with the original contract.

The market generally believes that after this extensive cracking plant resumes performance, the supply of ethylene and propylene in Southeast Asia will increase, and the tight supply situation of regional olefins is expected to be alleviated.

Follow-up concerns

sector insiders will continue to follow up on the actual load increase of the plant and the product delivery progress, and further assess the actual impact of this production recovery on the Asian olefin and downstream plastic manufacturing chains.