Sasol, INEOS finalise joint venture for HDPE plant in Texas
Michelle Klump
09-Jun-2014
HOUSTON (ICIS)–Sasol and INEOS have reached a final investment decision to team up to build a 470,000 tonne/year high density polyethylene (HDPE) plant in LaPorte, Texas, the companies announced on Monday.
South African-based Sasol and the US olefins and polymers subsidiary of Switzerland-based INEOS will enter into a 50/50 joint venture to produce bimodal HDPE using INEOS’s Innovene S process technology. Sasol and INEOS will provide the ethylene required for production in proportion to their respective ownership positions.
INEOS will operate the plant at its Battleground Manufacturing Complex in LaPorte.
“Its location offers several benefits, including access to US Gulf coast infrastructure and proximity to our current and proposed ethane cracker and derivatives complex in southwest Louisiana,” said Fleetwood Grobler, Sasol group executive for global chemicals.
The definitive agreements are still being finalised, but all relevant permits have been obtained. However, because the plant will be debt financed, the investment decision is conditional on achieving financial close.
The two companies announced plans to form the joint venture in July 2013. Plant start-up is expected sometime in 2016, the companies said in the release.
The proposed plant is one of several planned PE expansions in North America that are tied to availability of ethane feedstocks from shale gas.
Company |
Project |
Tonnes/year |
Grades |
Location |
Start-up |
Chevron Phillips Chemical |
New units |
1m |
HDPE, LLDPE, other |
Sweeny, TX |
2017 |
Dow Chemical |
New units |
N/A |
PE (high-value), LDPE |
Freeport, TX |
2017 |
ExxonMobil Chemical |
New units |
1.3m |
PE (premium) |
Mont Belvieu, TX |
Late 2016 |
Formosa Plastics |
New unit |
300,000 |
LDPE |
Point Comfort, TX |
2016 |
LyondellBasell |
Debottleneck |
100,000 |
Not specified |
US |
Q1 2014 |
LyondellBasell |
New unit |
454,000 |
Not specified |
US |
Late 2016 |
NOVA Chemicals |
Debottleneck |
N/A |
LDPE |
Mooretown, Canada |
2018 |
NOVA Chemicals |
Retrofit |
N/A |
HDPE |
Mooretown, Canada |
2018 |
NOVA Chemicals |
New unit |
430,000-500,000 |
LLDPE |
Joffre, Canada |
Q1 2016 |
NOVA Chemicals |
New unit |
NA |
Advanced Sclairtech |
NA |
2020 |
Odebrecht |
New units |
NA |
Not specified |
West Virginia |
NA |
Sasol |
New unit |
450,000 |
LLDPE |
Lake Charles, LA |
2016 |
Sasol |
New unit |
420,000 |
LDPE |
Lake Charles, LA |
N/A |
Sasol/INEOS |
New unit |
470,000 |
HDPE |
LaPorte, TX |
2016 |
Shell Chemicals |
New unit |
N/A |
Not specified |
Monaca, PA |
2019-2020 |
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