INEOS confirms PAO, US LAO investments

13 September 2016 19:14 Source:ICIS News

The 420,000 tonne/year linear alpha olefins unit should come on line in late 2018 south of Houston. INEOS Oligomers has not announced where its polyalphaolefins plant will be built. Above, INEOS Chemical Complex glows at night near the Manchester Ship Canal in the UK. (Photofusion/REX/Shutterstock)
The 420,000 tonne/year linear alpha olefins unit should come on line in late 2018 south of Houston. INEOS Oligomers has not announced where its polyalphaolefins plant will be built. Above, INEOS Chemical Complex glows at night near the Manchester Ship Canal in the UK. (Photofusion/REX/Shutterstock)

(updates with comment from INEOS)

HOUSTON (ICIS)--INEOS Oligomers on Tuesday confirmed plans to build a 420,000 tonne/year linear alpha olefin (LAO) unit at Chocolate Bayou, Texas, to supply its polyalphaolefins (PAO) facilities.

US petrochemicals engineer Jacobs earlier announced that it won a contract to build the LAO project, which is expected to come online in late 2018.

The LAO unit would supply a planned new 120,000 tonnes/year single train low viscosity PAO facility, expected online in the first half of 2019, INEOS said in a statement.

The company did not say where the new PAO plant would be built or how much money will be invested in the PAO and LAO projects. A media official could not immediately be reached for additional comment.

In its statement, INEOS added that it completed a debottleneck of its La Porte plan in Texas, which produces low viscosity grades, and that it has optimised production runs at its plant in Feluy, Belgium.

In addition to investments in low viscosity grades, INEOS also previously announced a new 20,000 tonne/year high viscosity PAO unit at La Porte, to be commissioned in the first quarter of 2017.

"The industry needs an increased supply of high quality base oils, such as PAO, to formulate the next generation of advanced lubricant products, " said Bob Learman, CEO of INEOS Oligomers.

"INEOS is making the commitment to invest in both the PAO capacity and the necessary LAO feedstock supply to ensure PAO is a viable and secure long term formulation option for our customers," he added.

By Stefan Baumgarten