US regulator to hear Eastman pipeline dispute at Texas site in May

25 April 2014 15:45  [Source: ICIS news]

HOUSTON (ICIS)--A Texas regulator will next month hear Eastman Chemical’s dispute with Westlake Chemical over a common carrier ethylene pipeline at the companies’ production site in Longview, Texas, Eastman executives said in an update on Friday.

The Texas Railroad Commission, the regulatory authority for pipelines in Texas, is scheduled to hear the case in May, the executives said during Eastman’s first-quarter earnings call.

The pipeline connects Longview, where both companies have plants, with the natural gas and liquids hub at Mont Belvieu. Eastman is challinging changes Westlake made last year to the pipeline’s tariff and the terms of its usage, costs and service.

The dispute is hindering Eastman's plans to monetise some 700m lb/year of excess ethylene capacity it has at Longview.

Eastman CEO Mark Costa said that the ongoing dispute with Westlake was "one complexity" that needed be resolved before Eastman can conclude a deal with interested third parties over the excess ethylene.

"We still have people interested in that excess ethylene position, but this is now a matter of timing to get this [dispute] resolved satisfactorily," he added.

By: Stefan Baumgarten
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