Indonesian petrochemical maker PT Chandra Asri Pacific has declared force majeure, citing disruption to feedstock shipments through the Strait of Hormuz following the outbreak of the Iran war.
The Jakarta-based company notified customers of the disruption in a March 2 notice seen by Bloomberg News, saying the duration of the force majeure remains uncertain.
“We are closely monitoring the evolving situation between the United States and Iran and have implemented precautionary measures to safeguard operational resilience across our business units,” it said in a statement on Tuesday. “As part of these measures, we will adjust operating levels (run rates) at our plants.”
The conflict between Iran, Israel and the US have disrupted oil flows through the Strait of Hormuz, with few oil tankers making the transit since strikes in the area. Roughly one-fifth of the world’s oil and liquefied natural gas passing through the narrow waterway.
Chandra Asri operates Indonesia’s largest integrated petrochemical complex, producing olefins and polyolefins, and also owns and manages refining and downstream chemical assets in Singapore through a joint venture, according to its website. Its assets include a refinery with capacity of 237,000 barrels per day and a 0.9 million metric tons-per-year naphtha cracker.
The company’s shares fell 2.5% on Tuesday to the lowest in almost one year.
Source: www.bloomberg.com
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