Who Is Still Under Petrochemical Force Majeure?

Six Months Later: Who Is Still Under Petrochemical Force Majeure?

The Middle East conflict triggered one of the most widespread force majeure waves seen in the petrochemical industry in recent years.

A force majeure clause allows a company to suspend or modify contractual obligations when extraordinary events outside its control — such as war, infrastructure damage or severe supply disruptions — make normal performance impossible. It does not necessarily mean that a plant has completely stopped producing; it can also mean that contracted volumes can no longer be guaranteed.

The 2026 crisis spread rapidly because Asian petrochemical producers depend heavily on Middle Eastern crude oil and naphtha. Disruption to shipping through the Strait of Hormuz left crackers without sufficient feedstock, forcing companies to cut operating rates, shut plants and suspend contractual deliveries.

Taiwan

Formosa Petrochemical Corporation (FPCC) declared force majeure after Middle Eastern naphtha supplies were disrupted. The company lifted the declaration on 3 June 2026 after operating conditions improved.

Formosa Plastics Corporation (FPC) declared force majeure on PVC in March. No clear public announcement confirming when the declaration was formally lifted has been identified.

Formosa Chemicals & Fibre Corporation (FCFC) declared force majeure in March and lifted it on 9 June 2026.

China Petrochemical Development Corporation (CPDC) declared force majeure on caprolactam and Nylon 6 after upstream suppliers stopped delivering critical aromatics and intermediates. No clear public lifting notice has been identified.

South Korea

Yeochun NCC (YNCC) declared force majeure after naphtha procurement was disrupted. No confirmed public lifting date has been identified.

LG Chem declared force majeure on certain DOTP export contracts after shortages disrupted its oxo-alcohol operations. No public notice formally terminating the declaration has been identified.

Hanwha Solutions warned customers that force majeure could become necessary, but this should not be treated as a confirmed declaration without further evidence.

Singapore

PCS formally declared force majeure in March, citing disruption to maritime transport and its upstream supply chain. No clear public lifting notice has been identified.

Aster Chemicals and Energy declared force majeure after feedstock deliveries were disrupted. Operations subsequently improved, but no formal public cancellation notice has been identified.

Dairen Chemical declared force majeure on vinyl acetate monomer after its ethylene suppliers themselves entered force majeure. No clear public lifting notice has been identified.

The Polyolefin Company (TPC) declared force majeure after upstream olefin shortages forced production lines to stop. No definitive public termination notice has been identified.

China

CNOOC and Shell Petrochemicals (CSPC) declared force majeure on butadiene after Middle Eastern disruption affected upstream feedstock supply.

Wanhua Chemical also invoked force majeure amid the crisis. Some products continue to appear in industry databases without a published end date.

Indonesia

Chandra Asri Pacific declared force majeure in early March but ended the status in early May after securing alternative feedstock sources.

Thailand

Rayong Olefins, part of SCG Chemicals, declared force majeure and temporarily suspended operations after shortages of naphtha and propane. Force majeure-related disruption has continued into September.

Bahrain

Bapco Energies declared force majeure across affected group operations in March after its refinery complex was hit during the regional conflict. No subsequent formal notice announcing that the force majeure had been lifted has been identified.

Six Months Later

The picture today is mixed.

Some major producers, including FPCC, FCFC and Chandra Asri, have formally exited force majeure. Others have restored or increased production but have not publicly announced a formal end to their declarations.

Several companies continue to appear in industry databases with force majeure-related restrictions or without a confirmed end date.

What began as a shipping crisis in the Gulf became a reminder of how dependent the global plastics industry remains on a relatively small number of crude oil, naphtha and petrochemical supply routes.