Posted on 11/19/2015 12:54:38 PM PST by thackney
LyondellBasell Industries petrochemical giant said Thursday it plans to build a new plant near Houston at its Channelview complex that represents the company's largest capital investment ever.
The PO/TBA plant would produce 900 million pounds of propylene oxide, 2 billion pounds of tertiary butyl alcohol and its derivatives annually. Propylene oxide is a chemical used to make everything from antifreeze to cosmetics. The tertiary butyl alcohol is a byproduct used as a solvent to make chemicals and gasoline additives.
The move is part of the Gulf Coast's petrochemical boom that has seen companies taking advantage of cheap natural gas used as a feedstock for manufacturing chemicals and plastics.
LyondellBasell is planning to spend up to $4 billion in capital through 2020 along the Gulf Coast, mostly in Texas. The company recently completed completed ethylene expansion projects at its La Porte and Channelview sites in Texas. A third ethylene expansion project is currently underway in Corpus Christi.
However, LyondellBasell said it is beginning front-end engineering work on the project, and will not make a final decision on starting construction until after the engineering is finished next year.
LyondellBasell previously announced the PO/TBA project last year, but a location was not determined at that time. The goal is to have the plant operational in 2020. This past summer, CEO Bob Patel said Channelview was in the mix for the plant, but a final decision likely wasn't coming until 2016.
"We are moving forward in a deliberate fashion to develop what could become the single largest capital investment in LyondellBasell's history," Patel said Thursday in a prepared statement. "We continue to believe that the combination of low cost natural gas liquids available on the U.S. Gulf Coast, along with our leading proprietary PO/TBA technology, will allow this proposed project to capture maximum advantage of market opportunities."
LyondellBasell has its operational headquarters in Houston, although it is formally domiciled in the Netherlands.
The project, considered to be the largest of its kind in the world, is expected to create up to 2,500 construction jobs and 100 permanent positions, the company said. LyondellBasell is not releasing project costs.
While the project will be located in Channelview, LyondellBasell said its Bayport Choate site near Pasadena was selected for an ethers unit to produce fuels for high-octane gasoline.
The company said the plant will sell propylene oxide in the globally to meet growing demand for polyurethanes, which are used to make bedding, furniture, carpets and car seats. The tertiary butyl alcohol and its derivatives will be sold to meet the need for high-octane gasoline blending components, as well as for helping manufacture synthetic rubber and lubricant additives.
LyondellBasell is the world’s leading producer of propylene oxide (PO), a commodity chemical used in the manufacturing of thousands of everyday products, ranging from antifreeze to cosmetics.
Benefits & Applications
PO is used to make highly versatile polyurethane raw materials which, in turn, are used in the manufacturing of thousands of everyday products. Polyurethanes are used to produce rigid foams for thermal insulation in the construction industry and flexible foams for mattresses, furniture upholstery and seat cushioning in automotive applications. Additionally, PO is a basic chemical used as a building block in the production of intermediate products, which are found in everything from antifreeze to cosmetics.
https://www.lyondellbasell.com/en/chemicals/p/PROPYLENE-OXIDE/d694f889-9a71-4b08-a99d-5e1c7a60a428
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