LyondellBasell mulls setting up third PO line in Asia by 2014-15

23 August 2010 09:23  [Source: ICIS news]

SINGAPORE (ICIS)--Petrochemical major LyondellBasell plans to set up a propylene oxide (PO) plant in Asia by 2014 or 2015 to meet an expected rise in downstream demand, a source close to the company said on Monday.

The company was currently in the process of finalising the project details including capacity and would officially announce the project in November or December, the source said.

“The idea for this third unit is in line with the expansion plans of the Chinese downstream polyether polyols facilities within the next five years,” he added.

Lyondell was yet to decide on the site for its new project, the source said, adding that depending on economic feasibility, it may even set up the plant in the Middle East.

“If the Middle East can offer a better upstream propylene-PO spread compared to China, the company may prefer setting up the plant in Middle East,” the source said. China is a key spot market for PO in Asia.

While the company had not yet finalised the technology for the new plant it might use the PO/tertiary butyl alcohol (PO/TBA) process, the source said, adding that Lyondell had an existing PO/TBA line in the US.

“The capital cost for such a PO/TBA unit is one-third that of a PO/styrene monomer (SM) facility, and the co-product TBA can be converted into methyl tertiary butyl ether (MTBE) which is used as a gasoline additive," he said.

LyondellBasell runs two PO joint venture plants in Asia – Nihon Oxirane’s 200,000 tonne/year PO plant at Chiba, Japan and Ningbo ZRCC Lyondell Chemical’s 285,000 tonne/year PO/SM unit at Ningbo, China.

Other PO producers in Asia include Shell, AGC Chemicals, SKC.

Companies that are expected to set up PO plants in Asia and the Middle East in the next two years include Dow Chemicals, Siam Cement and Saudi Aramco. (Please see table below)

Company	Location	Capacity	Expected start-up date
Dow Chemical and Siam Cement JV	Mab Ta Phut, Thailand	390,000 tonne/year HPPO (hydrogen peroxide-propylene oxide	Dec 2011
Saudi Aramco and Dow Chemical JV of Ras Tanura Integrated Project (RTIP)	Jubail Industrial City, Saudi Arabia	To be confirmed	Early 2014

For more information on PTA, visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Ong Sheau Ling
+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