Borealis to implement €180/t energy surcharge in Europe

Petrochemical producer Borealis has told customers it intends to implement a €180/t ($176/t) energy surcharge in Europe on supplies of polyolefins from 1 October.

The company attributed the decision to “significant energy cost increases” ahead of a potential energy shortfall faced by Europe this winter. “The unprecedented scale of developments now exceeds our ability to completely absorb these additional costs internally,” it said in a letter seen by Argus.

The company added that the surcharge will be valid until further notice, and could face further revisions in “case of a further substantial change in energy cost”