India warns on chemical restarts after LG Polymers leak

Market: Petrochemicals
08/05/20

The Indian government has warned all chemical plants to take precautionary measures while resuming operations following yesterday's fatal leak at the LG Polymers India (LGPI) plant, potentially complicating restarts as the country's Covid-19 lockdown eases.

Indian courts are investigating the incident at the plant in Visakhapatnam, while police have filed a criminal case alleging negligence by plant management after the death toll rose to at least 11 people. Hundreds of others have been sickened.

India's National Green Tribunal (NGT) has ordered LGPI to deposit an initial 500mn rupees ($7mn) and set up a five-member committee to investigate the incident. LGPI is owned by South Korea's LG Chemical.

"Styrene gas is a hazardous chemical and rules require on-site and off-site emergency plans to ensure prevention of damage,'' a three-member NGT bench said. "There appears to be a failure to comply with the said rules and other statutory provisions."

LGPI said that the affected storage tank contained around 1,800t of styrene, and the release of styrene vapour could have occurred due to stagnation and changes in temperature. LGPI produces polystyrene (PS) and expendable PS using styrene monomer (SM) as a raw material.

The high court in Andhra Pradesh state, where LGPI is located, has also taken up the case and has asked the government why the plant was allowed to be built in a residential area. Police have filed a criminal case against the management and local residents are demanding that the plant be shut down.

The incident happened during a restart at the plant. Operations at Indian polymer factories have been affected by India's extended Covid-19 lockdown, with plastics conversion curbed for all but essential items.

India imports all its SM supplies, mainly from the Middle East, Europe, the US and South Korea. India imported about 850,000t of SM in 2019. LGPI imports around 5,000 t/month of SM.

All PS and EPS plants were forced to shut when India began its lockdown on 25 March and mostly remain off line.

The number of coronavirus cases in India has surged to over 56,300 with deaths at 1,886. The lockdown is scheduled to end on 17 May, although activity is restarting in some areas already.

By S Dinakar

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