29 July 2011 22:47 [Source: ICIS news]
Corrected: In the ICIS news story headlined “LyondellBasell to focus on US debottlenecking projects” dated 29 July 2011, please read in the fourth paragraph … The La Porte cracker currently has a capacity of 789,000 tonnes/year of ethylene … instead of … 789,000 tonnes/year of ethane …. A corrected story follows.
HOUSTON (ICIS)--LyondellBasell will focus on its debottlenecking projects in the US before turning attention to green field investments, the company said on Friday.
Netherlands-based LyondellBasell has plans to debottleneck its Channelview and La Porte crackers in Texas as well as others in the midwest US before making investments elsewhere, chief executive Jim Gallogly said on Friday during the company's second-quarter earnings conference call.
"These could be absolutely world-class crackers in size," he said. "Those brown field type investments will have much better returns we believe, than green field."
The La Porte cracker currently has a capacity of 789,000 tonnes/year of ethylene and the two crackers at Channelview each have a capacity of 873,000 tonnes/year, according to ICIS plants and projects.
Progress on those debottlenecking projects are moving at a fast pace. The company expects to have detailed engineering on them soon, Gallogly said without giving a definitive timeline on the projects.
The company’s US midwest crackers would directly benefit from shale gas coming from the Marcellus formation
“One of the reasons we are going after debottlenecks first is those can be done quicker,” Gallogly said. “The first guys done will be in the best position to take advantage of the shale gas. So we’re working that very, very hard with a full emphasis on our engineering team and external contractors.”
For more on LyondellBasell visit ICIS company intelligence
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