Aster Chemicals Declares Force Majeure on Supplies

The major refiner and petrochemical producer Aster Chemicals and Energy has declared force majeure on its supplies, citing significant disruptions in raw material procurement linked to the ongoing conflict in the Middle East. Based in Singapore, the company is a joint venture between the global trading giant Glencore plc and the major petrochemical producer from Indonesia, PT. Chandra Asri Petrochemical Tbk.

The declaration follows a comprehensive assessment of the company's ability to meet its contractual obligations to customers amid the supply chain challenges. A spokesperson for the company characterized the move as administrative, noting that it was necessary to manage the current situation responsibly.

\"This step is administrative in nature and follows a comprehensive assessment of potential implications on our ability to fulfill obligations to customers.\"

Aster Chemicals and Energy operates significant infrastructure, including a 237,000 barrel-per-day refinery and a 1.1-million-metric-ton-per-year cracker located at Bukom and Jurong Island. While the company has not officially specified which products are impacted, industry sources and internal documents suggest that ethylene and propylene are among the affected commodities.

Operational adjustments have been implemented across the production sites to conserve feedstock and ensure safety. According to the company spokesperson, the current strategy involves a reduced operating run rate.

\"The reduced operating run rate is across our plants to responsibly manage available feedstock and maintain safe operations.\"

Reports indicate that the steam cracker is currently operating at approximately 50% capacity. This disruption comes shortly after the facility restarted operations at the end of February, following a period of prolonged maintenance and a previous force majeure event that occurred in August of last year.