Gujarat Braces for Cyclone Biparjoy, Ports Shut Down, and Petrochemical Producers Halt Production

Kandla (Gujarat): Cyclone season is upon us in the Indian subcontinent and the recent Cyclone Biparjoy is the unpleasant reality of the mid-June ahead of the monsoon. Cyclone Biparjoy will impact the petrochemical hub of India, Gujarat.

Cyclone Biparjoy is expected to make landfall on 14th June and is likely to cause major supply chain disruption and production halts. As per the latest information, the port of Kandla, Mundra, Okha, and Navlakhi, as well as the oil ports of Sikka and Vadinar have suspended operations as of 12th June 2023. Only the key port of Hazira has been operating with normalcy.

As per reports, the port shutdown may last this weekend and operations may resume next week. Thus, there have been several container lines notifying the customers of potential delays in cargo amidst the suspension of port operations.

Meanwhile, several petrochemical producers have halted production or trading of several key petrochemicals, among these Reliance India Limited (RIL), Oriental Carbon and Chemicals Limited (OCCL), Gujarat Pipavav Port Limited (GPPL), and several others.

On 12th June 2023, RIL suspended exports of Diesel and other refinery products from Jamnagar, the world’s largest refining complex. The aromatics business in Jamnagar, particularly of Benzene, o-Xylene, and p-Xylene along with Benzene may face suspension. RIL has a 1.4 MMTPA Benzene capacity on the West Coast located in Jamnagar, Hazira, and Vadodara. While Hazira production is unlikely to get affected, Jamnagar may face suspension.

OCCL has announced that the company will shut operations in SEZ, Mundra, and Kutch from 14th June till 16th June amid the unpredictable weather conditions, the company reported earlier. OCCL is likely to shut down operations temporarily of its plant with 22 KTPA of Insoluble Sulphur.

Saurashtra Chemicals Division of Nirma Limited has suspended operation at Porbandar until further notice, the suspension may impact Sodium Bicarbonate market dynamics.

Furthermore, Archean Chemical, one of the leading companies in specialty chemicals, shut its operations in Gujarat ahead of the closing of Cyclone Biparjoy.

Meanwhile, the State Government in cooperation with the Central government isn’t leaving any stone unturned in order to keep the damages to people and property to a bare minimum.

The preventive measures by the port authorities and petrochemical producers highlight the threats that Cyclone Biparjoy possesses and potential disruptions. The suspension of operations in the Gulf of Kutch, a key trading site for the Indian subcontinent, is likely to cause delays but any disruptions are out of contention as of now. However, any substantial assessment can only be made after the impact of the Cyclone in the region.