NPRA '08: LyondellBasell plans Trinidad complex

01 April 2008 00:12  [Source: ICIS news]

By John Richardson and Nigel Davis

SAN ANTONIO (ICIS news)--LyondellBasell plans to build a methanol-to-propylene and a polypropylene (PP) complex in Trinidad and Tobago and is investigating constructing further facilities in Tatarstan, central Asia, president of the company’s chemicals division, Edward Dineen, said on Monday.

“The Middle East – the traditional advantaged feedstock location – is becoming a tougher place to build for a company such as ours,” he said in an interview on the on the sidelines of the 33rd National Petrochemical and Refiners Assocation (NPRA) conference.

“In the Gulf Co-operation Council (GCC) region, gas supply is becoming tighter and the Saudi government is demanding more differentiated downstream production,” he added.

LyondellBasell is expanding its existing PP joint venture in Saudi Arabia, Saudi Polyoefins Co, with propylene from its new joint-venture cracker complex, Saudi Ethylene and Polyethylene Co (SEPC).

SEPC comprises a 1m tonne/year cracker and downstream high-density polyethylene (HDPE) and low density PE (LDPE) capacities.

The western major is also a partner in the propane dehydrogenation-to-PP complex, Al-Waha Petrochemical – again in Saudi Arabia. Its PP capacity will be 450,000 tonne/year.

Dineen said that all three projects were due for mechanical completion by the end of this year and would be on stream in the first quarter of 2009.

However, he added that due to "gas-supply issues, it is questionable whether we could expand these projects – hence, we are looking at other options.”

Options also include an ethane cracker project in Kazakhstan which is due for start-up in 2012.

Dineen said that the scope of the project - which was first announced two years ago –was still being defined, but added that the cracker’s capacity would be around 1m tonne/year. He conceded that logistics would be a problem as the central Asian country is land-locked.

The senior executive also commented on reports that the company faced rising interest payments on the interim debt which was taken on during the Basell acquisition of Lyondell.

“It is true is that some of the debt is floating and that interest rates will go up after certain periods, but we have been helped by the recent reductions in overall interest rates,” he said.

“There is a misunderstanding that the debt is going to blow up on our face. This is not going to happen. We have $23bn of debt, some of which still needs to be converted into bonds.

“If necessary, we can help our banks to go out into the market and sell our bonds.”

He added that, post-merger, company is in a much stronger position because of greater diversification from propylene oxide to styrene monomer, the cracker products, fuels, polyolefins and technology licensing.

Pro-forma annual revenues are about $44bn, said Dineen.

($1 = €0.63)

By: John Richardson
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly