LyondellBasell Delays Berre Cracker Restart to 2023

8 September 2022

Key highlights

The ethylene cracker in Berre, France was damaged by a fire on August 2.
Repairs are expected to be completed by November.
Restart is delayed to early 2023 due to high energy costs and low demand.

Incident Overview

On August 2, a fire damaged the ethylene cracker at LyondellBasell's integrated olefins and polyolefins production site in Berre, France. This incident has led to significant operational disruptions at the facility.

Repair Timeline

Repairs to the damaged cracker are projected to be completed by November. Despite the progress in repairs, the facility will not resume operations immediately upon completion.

Factors Influencing Delay

The decision to delay the restart until early 2023 is influenced by several factors. Persistently high energy costs in the region have made operations less economically viable. Additionally, compressing margins and a decline in demand for products have further contributed to the postponement.

Market Conditions

The chemical industry in the region is currently facing challenging market conditions. The combination of high operational costs and reduced demand is impacting the financial performance and strategic decisions of companies operating in this sector.