Westlake rejects Eastman claims in Texas ethylene pipeline dispute

02 August 2013 18:59  [Source: ICIS news]

HOUSTON (ICIS)--Westlake Chemical said on Friday that it does not agree with claims made by fellow US producer Eastman Chemical in a dispute over a common carrier ethylene pipeline in Texas.

The pipeline connects the Longview site, where both US-headquartered companies have plants, with the natural gas and liquids hub at Mont Belvieu.

Eastman said earlier this week that recent changes made by Westlake to the pipeline tariff and the terms and conditions of the pipeline usage, cost and service would delay the divesture of some of Eastman's ethylene cracking units at Longview. Eastman therefore filed a complaint with the Texas Railroad Commission, the regulatory authority for pipelines in Texas.

In a brief response released on Friday, Westlake said that the changes made to the pipeline tariff were made “in accordance with standard practices and reflect market conditions and were in no way intended to impact Eastman's operation of its facilities in Longview nor were these changes made to delay Eastman's divesture efforts".

Westlake added that it plans to file an official response to Eastman’s complaint with the commission.

Westlake is committed to continued long-term safe operation, support for the employees and investment at the Longview site,” it said.

Eastman is evaluating options for its excess ethylene position at Longview. The company, which has three operating and one idled olefin cracker at Longview, produces about 1.4bn lbs/year of ethylene at the site but uses only about 50% of it for its own operations.


By: Stefan Baumgarten
+1 713 525 2653



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