22 August 2018
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LyondellBasell today officially broke ground on what will be
the largest propylene oxide (PO)
and tertiary butyl alcohol (TBA) plant ever built.
The Houston area project is estimated to cost $2.4 billion,
representing the single-largest capital investment
in the company's history. Once in operation,
the plant will produce
1 billion pounds (470,000 metric tons) of PO and
2.2 billion pounds (1 million metric tons) of TBA annually.
Startup of the plant is planned for 2021.
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PO/TBA Project By the Numbers
To optimize product balances and realize synergies
between LyondellBasell sites,
two facilities will be constructed on existing manufacturing sites.
Channelview Complex, Channelview, Texas
The 140-acre PO/TBA plant will be built
at the LyondellBasell Channelview Complex
located in Channelview, Texas
Bayport Complex, Pasadena, Texas
while an associated 34-acre ethers unit,
which will convert TBA to oxyfuels,
will be built at the company's Bayport Complex
in Pasadena, Texas.
The company chose to build the new plant
at these existing locations
along the Texas Gulf Coast because of
* their proximity to low-cost feedstocks and
* the transportation infrastructure needed to ship products
to markets around the globe.
Bob Patel,
CEO of LyondellBasell
"Today's groundbreaking is a historic moment
for our company,"
"This plant will be the largest of its kind, built to meet
the rising global demand for urethanes
used by billions of consumers each day
and clean-burning oxyfuels that will help improve air quality
around the world.
The construction of this project will provide jobs
for our neighbors, support local businesses
and strengthen our communities
with increased tax revenues across the greater Houston region.
As one of the cornerstones of our global growth strategy,
the new plant will strengthen our ties in Houston
and generate long-term value for our shareholders."
Built to meet global demand
PO is used to make bedding, furniture, carpeting, coatings,
building materials and adhesives, while
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.
Global demand for urethanes is projected
to grow by 4 to 5 percent over the next five years
due to emerging economies in Asia and India
and their increased demand for consumer products.
The global TBA market is expected to increase
by 3 percent annually between 2018 and 2028,
as drivers and governments in Asia Pacific
and Latin America seek to improve air quality
with cleaner-burning gasoline.
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.
SOURCE LyondellBase
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