UpdateLyondellBasell to spend $150m on Channelview project

08 December 2011 23:04  [Source: ICIS news]

LyondellBasell Channelview facility in Texas(adds details throughout)

HOUSTON (ICIS)--Netherlands-based LyondellBasell’s expansion projects at its Channelview complex in Texas will cost about $150m (€113m), the company said on Thursday.

During an investor day in New York, LyondellBasell announced it will increase its capability to process ethane feedstocks at the Channelview facility by 500m lb/year (227,000 tonnes/year). The company will also build a metathesis unit to boost propylene production by 500m lb/year of equivalent ethylene.

Company spokesman David Harpole said they did not have specifics on a timeframe or costs for the projects.

However, the presentation materials indicated that the ethane expansion would be complete in 2012 and cost about $25m.

There was also mention of “modest ethylene capacity expansion”, but no details were given.

The metathesis unit will cost about $125m, and is scheduled to be complete by 2014, according to the investor day presentation materials.

“Building new crackers is exciting,” said Tim Roberts, the senior vice president, olefins and polyolefins, Americas.

“But when 2013 comes around and all of a sudden you start seeing a little softer pricing on ethane…  we’re prepared to take advantage of it instead of starting up a new plant in 2017.”

The Channelview facility has two ethylene units that produce 873,000 tonnes/year each, and a propylene unit that produces 1.45m tonnes/year, according to ICIS plants and projects.

($1 = €0.75)

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By: Bobbie Clark
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