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Lyondellbasell BDO Force Majeure

- Sep 22, 2017 -

Dear Valued Customer,

As per the previous letter dated August 29, 2017, due to Hurricane Harvey, we have shut down or partially curtailed the production of 1,4 Butanediol(BDO) and Derivatives at our Channelview, TX plant, and have declared a force majeure event for 1,4 Butanediol(BDO) and Derivatives. The origical effective date of the force majeure event is August 29, 2017.

As a result of this event, Lyondell Chemical Company implemented a sales allocation on September 5, 2017 for all 1.4 Butanediol(BDO) and Derivatives which became effective September 1, 2017. Allocation volumes were determined based on purchases made in the prior six(6) months; specifically, February through July 2017.

Effective October 1, 2017 allocation levels will be revised as shown in the Table below.

Product Allocation%

Ally Alcohol(AA) Allocation Removed

1,4 Butanediol(BDO) 100%

2-Methyl-1,3 PROPANEDIOL(MP Diol) 80%

N-Methyl-2-Pyrrolidone(NMP) Allocation Removed


Polytetramethyl Glycol, PolyMEG 1000 100%

Polytetramethyl Glycol, PolyMEG 2000 100%

Styrene Allyl Alcohol(SAA 100) Allocation Removed

Styrene Allyl Alcohol(SAA 101) Allocation Removed

pls note that during the period of allocation, customers will not be permitted to borrow ahead of their monthly amounts and unused portion of monthly amounts cannot be added to any subsequent month's amounts. Additionally, allocations are subject to third party carrier availability and other logistical infrastructure limitations, including, but not limited to railcar, tank truck, barge/vessel, and port availability, which may impact Product availability and delivery dates. The duration of the force majeure event cannot be determined at this time and the percentage of allocation may change as new information becomes available.

As always, your account manager is available to address any questions or concerns you may have regarding this force majeure event. We value the trust you place in Lyondell Chemical Company as a supplier and we apologize for the inconvenience this may cause you.

Thank you for your understanding and patience.

and any inquire about the above material, pls feel free to contact with me at  vicky@gpcchem.com


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