en.Wedoany.com Report, On March 25, Wedoany.com learned that LG Chem, South Korea's largest petrochemical company, has decided to shut down some units at its core Yeosu plant site due to a prolonged naphtha supply disruption caused by the blockade of the Strait of Hormuz.

According to industry sources on the 23rd, LG Chem plans to shut down the No. 2 unit located in the Yeosu National Industrial Complex this week and will officially announce the details in the near future. Currently, LG Chem operates two naphtha cracking (NCC) units in Yeosu, with the No. 1 unit having an annual capacity of 1.2 million tons and the No. 2 unit having an annual capacity of 800,000 tons.

This supply disruption stems from the blockade of the Strait of Hormuz, a crucial global transportation route for oil and petrochemical feedstocks. As a fundamental raw material for the petrochemical industry, the stability of naphtha supply is vital for the continuous operation of cracking units. The prolonged disruption has forced LG Chem to adjust its production schedule.

It is reported that after the shutdown of the No. 2 unit, LG Chem will assess the market situation and the recovery of feedstock supply to determine the subsequent restart time. This adjustment may have a certain impact on the supply of basic petrochemical products such as ethylene and propylene within South Korea and the region.

As of now, LG Chem has not yet released a detailed explanation regarding the potential specific production losses from the shutdown or the follow-up arrangements. Industry analysts believe this incident reflects the impact of global geopolitical situations on the petrochemical industry chain and supply chain, and companies need to continuously focus on the diversification and stability of feedstock supply.