OxyChem, Mexichem start up JV cracker in Texas

HOUSTON (ICIS)–Occidental Chemical (OxyChem) and Mexichem’s new cracker in Ingleside, Texas, has begun operations on schedule and is currently in a production stabilisation phase, the two companies’ 50:50 joint venture firm Ingleside Ethylene announced on Monday.

The cracker will have an ethylene capacity of 1.2bn lb/year (544,000 tonnes/year) and will provide OxyChem with feedstock for the production of vinyl chloride monomer (VCM). Mexichem will use the VCM to produce polyvinyl chloride (PVC) resins and pipe.

The two companies have a 20-year supply agreement.

Construction of the cracker began in Q2 2014. The $1.5bn project also includes a pipeline and storage facility at Markham, Texas.

“This is a significant milestone for both OxyChem and Mexichem, enabling us to capitalise on the advantages that shale gas development presents for the chemical industry,” said Robert Peterson, president of OxyChem. “It also helps our companies better compete globally in our respective markets and gives us an inherent advantage to manage the cost of ethylene.”

Mexichem CEO Antonio Carrillo added: “For Mexichem, the ethylene plant is a vital part of our global strategy to become a vertically integrated specialty chemicals company with a focus on high-end products.”

Image above: The ethylene from the Ingleside cracker will ultimately be used in PVC pipe. Source: Stock Connection/REX/Shutterstock

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