Hindustan Organic Chemicals Ltd (HOCL) on Monday said it reduced production at its Kochi plant after a disruption in bulk liquefied petroleum gas (LPG) supply from Bharat Petroleum Corporation Ltd (BPCL).
In a regulatory filing, the company said that the disruption follows a Government of India directive requiring public sector oil companies to prioritise LPG supplies exclusively for domestic consumers. BPCL, which supplies bulk LPG to HOCL, informed the company that a force majeure event had occurred affecting its ability to supply LPG under the existing agreement.
HOCL said the buffer stock of LPG at its Kochi facility—its only manufacturing unit—would be exhausted by the evening of 9 March. As a result, the company has reduced the production load of the Phenol and Cumene plants and will temporarily shut down the PRU unit on 9 March, followed by other downstream units within two days if supplies do not resume.
The Kochi unit manufactures phenol, acetone and hydrogen peroxide, though the hydrogen peroxide plant will continue to operate normally despite the disruption. HOCL warned that a prolonged LPG shortage could lead to production losses and additional costs related to restarting plant operations.
