Deteriorating markets and economic conditions compel Equistar to temporarily idle olefin unit

01-Nov-08

Deteriorating markets and poor economic conditions have compelled Equistar Chemicals, LP to idle the olefin unit at La Porte, Texas until early 2009. Production capacity at the La Porte olefin unit comprises of 1.7 bln pounds pa of ethylene and 700 mln pounds of propylene. The company will utilize this down time to conduct opportunity maintenance at the La Porte site. Other operations at the 540-acre complex are not affected by the temporary idling of the unit. This includes low-density and linear low-density polyethylene units as well as acetic acid and vinyl acetate monomer units. "We have elected to take the olefin plant at La Porte offline for two to three months due to the drop-off in demand for ethylene and propylene as customers adjust year-end inventories and respond to fluid feedstock prices," said Ed Dineen, President of LyondellBasell's Chemicals Division. "Today's tight credit markets and low consumer confidence also are being felt by our customers, and this is contributing to decreased demand for petrochemical derivatives. "With our olefins flexibility in North America, we can optimize physical assets and contain a portion of our costs while continuing to meet the needs of our customers. We will maintain the unit in a state of readiness to restart sooner, if market conditions improve." (Press Release)