BP confirms new lldPE plant at Grangemouth

27 April 1998 14:55  [Source: ICIS news]

LONDON (CNI)--BP confirmed Monday it is to build a 300 000 tonne/year linear low density polyethylene (lldPE) plant at its Grangemouth site in Scotland.

Construction begins immediately and the plant is due onstream in the second quarter of 2000, said Mike Buzzacott, BP's chief executive for polymers and olefins. The reactor will run comfortably to up to 400 000 tonne/year, but BP does not want to take it up to this production capacity right now, he added.

Using BP's Innovene technology, the plant will be capable of running on both conventional catalysts and recently developed metallocene catalysts. It will have a single reactor design, incorporating a direct injection catalyst system and BP's patented enhanced high productivity (EHP) process technology.

Technip of France and Amec Process and Energy of the UK will design and build the plant.

The plant will share contractors and facilities, such as a logistics platform, with the Appryl (BP Chemicals/Elf Atochem) 250 000 tonne/year polypropylene plant announced last week. The logistics platform includes a packaging, warehousing and distribution facility which will be built and operated on behalf of BP and Appryl by Katoen Natie of Belgium.

To ease entry to the market of the lldPE, BP will convert the existing Innovex plant at Grangemouth to enable it to produce high density polyethylene (hdPE), as well as the lldPE it already produces, explained Buzzacott. Western European market growth is currently about 10% a year for lldPE and 3% for hdPE, according to BP.

Buzzacott said less than £200m ($333m) will be spend on the two plants, including the logistics platform and conversion of the existing Innovex plant.

"Capital expenditure is 20% less than what you would normally expect to spend," he added. The projects form part of a £500m BP programme to expand the petrochemicals operations at Grangemouth over the next five years and make it one of the most cost effective in Europe.

By: Anna Williams
+44 208 652 3214

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