28 March 2012 21:25 [Source: ICIS news]
HOUSTON (ICIS)--The first petrochemical producers that can take advantage of the US shale gas boom will benefit the most, the chief executive of LyondellBasell said on Wednesday.
"The early movers will have the best returns," said Jim Gallogly, chief executive of the company. He made his comments during the World Petrochemical Conference, held by IHS Chemical.
As more petrochemical producers begin expansion projects, construction costs will increase, Gallogly said. As a result, the producers that can start their projects early can benefit the most.
This is one of the reasons why LyondellBasell and other companies are considering debottleneck projects, since these can be started faster than a new plant.
A LyondellBasell project at its La Porte facility in Texas would expand ethylene capacity by 850m lb/year (386,000 tonnes/year). Meanwhile, the company’s Channelview facility in Texas is expected to increase its capability to process ethane feedstocks by an additional 228,000 tonnes/year.
The World Petrochemical Conference lasts through Thursday.
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