LyondellBasell has announced it will build a world-scale plant for 900 million lbs (408,0000 t/y) of propylene oxide (PO) and 2 billion lbs (about 907,000 t/y) of tertiary butyl alcohol (TBA) and its derivatives on the US Gulf Coast, taking advantage of cheap shale gas-derived feedstock.

Initial plans see the new facility going on stream in 2019.

The Netherlands-based company said it expects to sell PO in the global marketplace to meet growing demand for polyurethanes. TBA and its derivatives will be sold to meet the need for high octane gasoline blending components as well as for use in manufacturing synthetic rubber and lubricant additives.

"While we have not finalized the exact location of the plant, the abundant natural gas liquids associated with shale gas make the US Gulf Coast an advantaged feedstock region," said Pat Quarles, senior vice president of intermediates and derivatives.

"This project combines our leading proprietary PO/TBA technology with low cost feedstock and demonstrates our continued commitment to capturing maximum advantage of market opportunities," Quarles added.