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LyondellBassell moves forward with expansion complex

11/22.2015

Source: The Pasadena Citizen

Posted: Sunday, November 22, 2015 1:04 pm

LyondellBasell moves forward with expansion complex By Y.C. Orozco Houston Community Newspapers

LyondellBasell announced last week it is moving forward with plans to build the world’s largest plastics plant in the Houston area.

Already one of the world's largest plastics, chemical and refining companies, LyondellBasell estimates that the expansion project to bring in up to 2,500 construction jobs and approximately 100 permanent positions.

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The plant will produce propylene oxide (PO) and tertiary butyl alcohol (TBA) and is expected to be the largest of its kind in the world.

The LyondellBasell complex located in Channelview was selected as the site for the PO/TBA unit while the Bayport Choate site near Pasadena was selected for an ethers unit to produce oxy-fuels for high octane gasoline. In addition, a split facility design between Channelview and Bayport sites will make the most effective use of the product balances between the sites and create additional synergies.

“We are moving forward in a deliberate fashion to develop what could become the single largest capital investment in LyondellBasell’s history,” said Bob Patel, LyondellBasell’s chief executive officer. “We continue to believe that the combination of low cost natural gas liquids available on the U.S. Gulf Coast, along with our leading proprietary PO/TBA technology, will allow this proposed project to capture maximum advantage of market opportunities.”

LyondellBasell is expected to begin front-end engineering design work and file environmental permit applications.

This phase of the project includes funding for long lead-time equipment and a final investment decision will be made after the completion of engineering and design work.

The proposed plant complex is part of a larger $3 to $4 billion expansion project that will take place in the U.S. Gulf Coast over the next five years. It follows completed expansion projects at LyondellBasell ‘s La Porte and Channelview sites.

Plans for the PO/TBA project were previously announced in August 2014.

The plant is expected to produce an estimated one billion pounds of propylene oxide and two billion pounds of tertiary butyl alcohol to see in the global market to meet increasing demand for polyurethanes, used for the manufacturing of bedding, furniture, carpets and car seats. TBA derivatives include oxy-fuels and will used for the manufacturing of synthetic rubber and lubricant additives and to be sold to meet demand for high octane gasoline blending components.



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