27 July 2012 18:52 [Source: ICIS news]
HOUSTON (ICIS)--LyondellBasell is still considering partnering on a potential cracker project, but continues to focus on a strategy of debottlenecking at its existing US facilities first, CEO Jim Gallogly said on Friday.
"We are still thinking about it, but our basic strategy has been to get the debottlenecks that are significant done early," Gallogly said during a second-quarter conference call. "We think our strategy makes sense."
The company has announced a project at its La Porte facility in Texas, which would expand ethylene capacity by 850m lb/year (386,000 tonnes/year). The timeline for that project to be completed is in 2014.
Gallogly said he hopes to have the company's debottlenecking projects completed at a cost of 45 cents/lb ($992/tonne, €804/tonne) of ethylene versus 75 cents/lb of ethylene for new building, and to get them into the market a year or two earlier than other projects.
"I really believe that some of these crackers are going to come on later and be more expensive than people are talking about right now," he said.
Gallogly said the company has been approached by potential partners for a cracker project and will continue to evaluate those proposals in the future.
($1 = €0.81)
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