21 July 2017
DETAILS
LyondellBasell (NYSE: LYB) today announced
the final investment decision to build
the world's largest
propylene oxide (PO) and tertiary butyl alcohol (TBA) plant
in the Houston area.
The project is estimated to cost approximately $2.4 billion,
representing the single-largest capital investment
in the company's history.
At the peak of construction, the project is expected
to create up to 2,500 jobs and
approximately 160 permanent positions when operational.
Built to serve global markets
Once in operation, the plant will produce an anticipated
*1 billion pounds (470,000 metric tons) of PO and
* 2.2 billion pounds (1 million metric tons) of TBA annually.
PO is used in the manufacture of bedding, furniture,
carpeting, coatings, building materials and adhesives, while the
TBA will be converted to two ether-based oxyfuels,
* methyl tertiary butyl ether (MTBE) and
* ethyl tertiary butyl ether (ETBE).
Both MTBE and ETBE are high-octane gasoline components
that help gasoline burn cleaner
and reduce emissions from automobiles.
LyondellBasell plans to sell
* the PO and derivative products
to both domestic and global customers,
* while the oxyfuels will be primarily sold into
Latin America and Asia.
* A portion of the TBA will remain in the domestic market
in the form of high purity isobutylene
which is used in tires and lubricants.
The majority of the products will be exported
via the Houston Ship Channel.
Project overview
The PO/TBA project will have a split facility design
to optimize product balances and
realize synergies between LyondellBasell sites.
The proposed location for the PO/TBA plant is
the LyondellBasell Channelview Complex located
in Channelview, Texas.
The associated ethers unit, which will convert TBA to oxyfuels,
is proposed for the company's
Bayport Complex near Pasadena, Texas.
The company has
* completed front-end engineering design work and
* received the required environmental permits.
* Site preparation is underway and
* construction is expected to begin
during the second half of 2018.
It is anticipated the project will be completed
by the middle of 2021.
Final site selection is contingent upon final approval
of certain economic incentives by the state of Texas.
* The PO/TBA project is part of
LyondellBasell's $5 billion organic growth program
taking place on the U.S. Gulf Coast.
LyondellBasell recently completed
* ethylene expansion projects
at the company's La Porte, Channelview
and Corpus Christi sites in Texas,
finalizing a multi-year plan to increase annual ethylene capacity
in the U.S. by 2 billion pounds (900,000 metric tons).
Additionally, LyondellBasell began construction of
* a world-scale polyethylene (PE) plant
at its La Porte Complex, which utilizes
the company's proprietary Hyperzone PE technology
and will more than double that site's PE capacity
to 2 billion pounds (900,000 metric tons) per year
upon completion in 2019.
Bob Patel,
CEO of LyondellBasell
"This world-scale project is a key part
of our organic growth strategy which is designed
to meet rising global demand
for both urethanes and cleaner-burning oxyfuels
while creating real, long-term value for our shareholders,"
"Our investment in this plant combines the best of both worlds:
our leading PO/TBA process technology
with proximity to low-cost feedstocks,
which gives LyondellBasell a competitive advantage
in the global marketplace for these products."
Bob Harvey,
President and CEO of the Greater Houston Partnership
"We are pleased that LyondellBasell continues
to view the Houston area as important to their global operations,
creating jobs and opportunities for Houstonians,"
"This new project further advances Houston's position
as a global hub of petrochemical manufacturing,
leveraging Houston's strategic access
to the Americas and top markets around the world."
SOURCE LyondellBasell
For further information: Faye Eson, 713-309-7575
WWW.CHEMWINFO.COM BY KHUN PHICHAI
