While the Dutch-headquartered, Texas-managed group did not name a possible start-up date or expected investment sum, the announcement matches reports confirmed last summer that group company Equistar was planning an expansion of the Channelview site that would include a plant of the same size to produce polymer-grade propylene.

At the time, the Houston Business Journal said LyondellBasell had applied for investment incentives. Negotiations were said to be under way on a plan to limit the taxable value of the propylene project to only $80 million for one decade under a soon-to-expire state investment incentives program known as Chapter 313.

Construction would begin in the first quarter of 2024, with start-up penciled in for the end of 2028, if the plans were realized as drafted, the report said. In its Nov. 17 statement, LYB said the new plant, if built, would lift its output capability by more than 35% and create an estimated 10-15 new jobs.

The upstream investment would make the petrochemicals and plastics giant less dependent on propylene market supply and demand and at the same time provide the opportunity to better serve growing customer needs, said Ken Lane, executive vice president Global Olefins & Polyolefins.

“Products offered through this investment,” he said, “will be an important element to helping our value chain partners achieve their long-term sustainability ambitions.”  This is in particular as the new plant would likely use LyondellBasell’s technology to convert ethylene into propylene feedstock to produce polypropylene and propylene oxide.

“In addition to lower carbon emissions compared with competing technologies, we believe the project has more favorable economics than other production methods," Lane added.
 

Groups fight potential petchems overload

The stepped up investment in new US petrochemicals and plastics plants, including a $8.5 billion project just announced by CP Chem and Qatar Energy and the start-up of Shell’s Appalachian cracker in Pennsylvania, will surely not please the interest groups fighting plans for an estimated 120 proposed complexes in three states.

Michael Bloomberg, media mogul, philanthropist and former politician who also serves as a United Nations special envoy on climate ambition and solutions recently launched an $85 million campaign called Beyond Petrochemicals: People Over Pollution to support their efforts. The groups say the plants are bringing more pollution to disadvantaged minority communities.

Author: Dede Williams, Freelance Journalist