26 July 2013 23:17 [Source: ICIS news]
HOUSTON (ICIS)--LyondellBasell's US crackers have started using the nation's growing supplies of condensate as a feedstock, a trend that is also benefitting the company's plants in Europe, the CEO said on Friday.
The energy boom in the US has led to increasing amounts of condensate being produced from the country's shale formations in such places as the Eagle Ford in south Texas.
Typically, that condensate has been shipped to Canada, where it is used as a diluent for that country's oil sands.
However, condensate can also be used as feedstock for crackers, and LyondellBasell is using US material as a raw material.
"One of the things that's happened is we've taken more south Texas condensates into our system here in the Gulf coast," said Jim Gallogly, LyondellBasell CEO. He made his comments during an earnings conference call.
"That has freed up some of the condensate that we used to import, for instance, from the Middle East, and made those available in Europe.
He added: "And so we're rerouting some of those feedstocks into our crackers there, at margins that are better than naphtha-type pricing. So we'll continue to do that, try to improve that crack, increase the competitiveness of those assets and work it really hard."
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