LyondellBasell still mulls US metathesis unit

HOUSTON (ICIS)–LyondellBasell is still reviewing a possible new metathesis unit in Channelview, Texas, which would produce propylene from ethylene, the CEO said on Friday.

The company is taking a long-term look at the project given the volatility in propylene prices, said Bob Patel, CEO. He made his comments during an earnings conference call.

Recently, propylene prices have fallen to multi-year lows because crackers began favouring propane over ethane. Propane cracking produces more propylene.

LyondellBasell responded by reducing operating rates for its existing metathesis unit during the third quarter.

However, ethane cracking should increase because of higher prices for propane, Patel said.

That underlines the need to take a longer-term view on the possible metathesis unit, he said.