OxyChem to make US cracker decision by end 2012, early 2013

05 June 2012 17:54  [Source: ICIS news]

COLORADO SPRINGS (ICIS)--US-based Occidental Chemical (OxyChem) is exploring options on a world-scale cracker in the US and expects to make a decision by the end of 2012 or early 2013, its president said on Tuesday.

“We are still exploring all options, and that includes talking to potential partners,” said Chuck Anderson, president of OxyChem, on the sidelines of the American Chemistry Council (ACC) Annual Meeting in Colorado Springs.

“The spread between NGLs [natural gas liquids] and ethylene should continue to be wide, and we want to benefit from the cheap shale gas dynamics,” he added.

OxyChem is the largest merchant buyer of ethylene in the US, requiring around 2.5bn lb/year (1.3m tonnes/year), said Anderson.

In June 2011, parent company Occidental Petroleum announced that it was studying building an NGL fractionator at Ingleside, Texas.

And this fractionator would “allow Oxy to explore various options for future supply of ethylene” for its chlorvinyls plant.

The ACC Annual Meeting runs from 4-6 June.

By: Joseph Chang
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