Ineos Styrolution Eyes SM Plant on US Gulf
Styrenics producer Ineos Styrolution is adding its name to the growing list of chemical producers planning to invest in new production facilities on the US Gulf coast. The company announced on Mar. 28 that it is commissioning an engineering study for a world-scale styrene monomer plant in the region, leveraging “cost-advantaged feedstock.”
While saying the new facility will use “best-in-class technology” and benefit from access to low-cost shale gas-derived feedstock and energy as well as the Gulf’s “excellent infrastructure,” the Ineos subsidiary – formerly a joint venture with BASF – did not specify a location or investment cost.
Steve Harrington, president of global styrene monomer and Asia-Pacific at Ineos Styrolution, said the plant will complement the company’s existing SM production facilities and provide a “sustained competitive advantage” to enabling it to supply the global market.” Along with styrene monomer, the Frankfurt, Germany-based producer also has polystyrene, ABS and styrenic specialties in its portfolio.
CEO Kevin McQuade said the planned investment supports the company’s “Triple Shift”’ growth strategy focused on higher-growth industries, styrenics specialties and standard ABS, along with emerging markets.
The shale gas wave appears to be still far from ebbing on the coasts of Texas and Louisiana. According to a recent estimate, by the end of 2019 the US Gulf region will see the start-up of new capacity totaling 6m t/y after adding 4m t/y of new capacity in 2017.
In 2018 so far, announcements of construction plans or plant start-ups have come from ExxonMobil (new PP plant), a consortium of Total, Borealis and Nova (new cracker and PE plant) and ChevronPhillips (cracker start-up). Last autumn, LyondellBasell said it was studying plans for a new project on the Gulf, with a decision to be made this year. The region was hit hard by Hurricane Harvey in 2017, but the industry is believed to have recovered well.
