Repsol Issues Force Majeure for Propylene Oxide and Styrene Supply in Tarragona

Repsol Quimica, the Spanish oil company, has outlined plans to undergo a temporary shutdown of its propylene oxide and styrene oxide production lines in Tarragona, Spain, starting mid-January 2024. This scheduled closure is necessitated by the aftermath of a fire, and the affected lines, boasting a combined capacity of 200 thousand tons of propylene oxide and 450 thousand tons of styrene per annum, are anticipated to remain offline for essential repairs until March of the same year.

The decision to temporarily halt production activities comes on the heels of a fire incident reported on November 22, prompting Repsol Quimica to declare force majeure for propylene oxide and styrene supply in Tarragona. The impacted production lines, which were shut down due to the fire, are integral components of the olefin production process. The incident also resulted in the temporary shutdown of the cracking unit at the Tarragona site.

Repsol Quimica, as the largest oil and gas company in Spain and Latin America, holds a prominent position as one of the top ten oil and gas corporations globally. The company's decision to undertake scheduled repairs reflects its commitment to maintaining operational integrity, ensuring the safety of its facilities, and upholding industry standards.

The temporary closure of the propylene oxide and styrene oxide production lines is strategically planned to address the damages caused by the fire incident. This proactive approach aligns with Repsol Quimica's dedication to operational excellence and the responsible management of its production facilities.

The force majeure declaration on November 24 served as an official acknowledgment of the unforeseen challenges posed by the fire incident. Force majeure is a legal clause that allows companies to temporarily suspend or alter contractual obligations due to unforeseen and uncontrollable circumstances, such as natural disasters, accidents, or fires. In this case, the fire at the Tarragona facility significantly disrupted normal operations, necessitating Repsol Quimica to invoke force majeure for the affected propylene oxide and styrene supply.

The capacity of the impacted production lines highlights their substantial role in the company's overall output. The 200 thousand tons of propylene oxide and 450 thousand tons of styrene per year collectively contribute to Repsol Quimica's extensive production portfolio. The company's dedication to addressing these challenges through scheduled repairs underscores its commitment to resuming normal operations and maintaining a reliable supply chain.

The scheduled shutdown until March 2024 allows Repsol Quimica to conduct thorough repairs and assessments to ensure that the affected production lines meet the highest safety and operational standards. This approach minimizes the risk of potential incidents and aligns with the company's long-term commitment to sustainability, safety, and efficient production processes.