Major LyondellBasell expansion projects on target

31-Oct-13

LyondellBasell is working to cash in on the US shale gas advantage by working "cheaper and faster" than competitors, opting in most cases to focus on expansions and debottlenecking projects over building new facilities, CEO Jim Gallogly is reported by Platts. The chemical-maker is on target to complete a major project every six months over the next 30 months, said Gallogly during its third-quarter earnings call. He highlighted progress on the restart of a methanol facility, a polyethylene debottleneck project and ethylene expansions at facilities in La Porte, Channelview and Corpus Christi, Texas. LyondellBasell's 780,000 tpa methanol plant in Channelview is on schedule for Q4-2013 completion, with the unit to be fully operational in the second quarter. The company is on target to complete a 220 mln lb/year polyethylene debottlenecking project during Q1-2014, an 800 million lbs/year ethylene expansion in La Porte in Q2-2014. All equipment for the ethylene expansion was set to be on site by end-2013, with construction set to be completed early next year. The 250 mln lb/year Channelview ethylene expansion is on schedule for a startup in the Q1-2015. Furnaces have been ordered and foundations have been poured, and the project should be mechanically complete by end-2014. The Corpus Christi expansion is still in the permitting phase, with construction slated to begin once permits are received. Projected start-up is set for end-2015.Gallogly also mentioned the Corpus Christi TexStar NGL project remains on target for start-up this quarter. While not a LyondellBasell project, Gallogly said it will allow the company to benefit from increased supply flexibility of NGLs to its Corpus Christi site.