Low Rhine Water Levels Disrupt German Petrochemical Output and Naphtha Logistics

Germanys petrochemical sector faced mounting production disruptions in July 2026 as critically low Rhine River water levels restricted feedstock movements to inland steam crackers and caused technical outages. Naphtha and LPG transport logistics along the key waterway were severely impacted, making it difficult to load full barges. Reduced vessel capacity increased dead freight costs and raised the delivered cost of moving product into inland demand centers. Rhine water levels were expected to fall to a record low of 25 centimeters at Kaub by July 25, sharply limiting barge movements and disrupting naphtha transport to cracker sites in western Germany. With insufficient naphtha deliveries, steam crackers struggled to maintain operating rates, reducing output of ethylene, propylene, crude C4, and downstream products such as butadiene. LyondellBasell declared force majeure on supply from its 170,000 metric tons/year butadiene extraction unit at Wesseling, Germany, effective July 16, attributed to low Rhine levels. Shell steam cracker at Wesseling, with capacity of 310,000 mt/year ethylene and 165,000 mt/year propylene, was also offline since early July according to market participants. A fire at BP Gelsenkirchen unit on July 15 added further uncertainty, affecting a diesel desulfurization unit at the Scholven site.