Formosa Petchem Issues Force Majeure Over Feedstock Delays

Taiwan based Formosa Petrochemical Corp (FPCC) has issued a force majeure notice on several petrochemical supplies following significant shipping disruptions in the Strait of Hormuz. The company, which often coordinates regional logistics through hubs like Singapore, cited delays in feedstock deliveries as the primary cause for the declaration. The disruptions are linked to ongoing regional tensions involving Iran, which have hampered the safe passage of tankers through critical maritime corridors. The force majeure primarily affects the supply of ethylene and propylene. FPCC spokesperson KY Lin confirmed that the company’s No. 2 and No. 3 crackers are currently operating at approximately 70% capacity. However, the refiner is considering the total shutdown of one cracker if the supply of naphtha feedstock remains unavailable. While the company monitors the situation, market participants are also observing the performance of related entities such as Naphtha Israel Petroleum Corp. Ltd. given the broader impact on the global energy and petrochemical supply chain. > "Our No.2 and No.3 crackers are still operating at around 70% for now." The Mailiao site, where the crackers are located, has a combined production capacity of 1.335 million metric tons of ethylene per year between the two active units. The No. 1 cracker is currently offline. Regarding refined fuel products, including diesel, jet fuel, and gasoline, FPCC intends to proceed with planned export deliveries for March and April. However, the company warned that spot availability for April is unlikely to materialize. As of early March, the refinery was processing roughly 490,000 barrels per day (bpd) of crude oil. This figure is expected to fluctuate as crude deliveries face potential interruptions after March 20. > "As of today, the refinery is processing around 490,000 barrels per day of crude, although the situation could change as some crude deliveries will be affected after March 20." Additionally, FPCC is preparing to shut its No. 2 crude unit for scheduled maintenance in the coming days. The privately owned refiner maintains a total crude processing capacity of 540,000 bpd.