Flavors and Fragrances Business to Pinova Holdings, Inc.
announced that Pinova Holdings, Inc. has purchased LyondellBasell
Flavors & Fragrances, LLC in a transaction which closed
"This divestiture is
consistent with our objective to focus on developing our core
businesses of olefins and polyolefins, intermediates and
derivatives, and refining and oxyfuels," said LyondellBasell
CEO Jim Gallogly. LyondellBasell said the transaction results in
after-tax proceeds of approximately $150 million.
The flavors and
fragrances business has manufacturing facilities at Jacksonville,
Fla., and Brunswick, Ga., and approximately 200 employees. It
produces terpene-based fragrance ingredients and flavor
ingredients for the oral-care, confectionery and beverage market.
Pinova Holdings said the newly acquired business will operate
under the name Renessenz LLC.
Pinova Holdings is the
parent company to Pinova, Inc., a global supplier of wood and gum
rosin and polyterpene resin specialty chemicals derived from
natural and renewable raw materials based in Brunswick, Ga.
May 31, 2011
LyondellBasell to Seek
Buyer for Berre, France Refinery
LyondellBasell today announced its intention to seek a buyer for
barrels-per-day refinery at Berre, France operated by its subsidiary,
Compagnie Petrochimique de Berre S.A.S (CPB). An investment
banking firm will be retained to assist with the sales offering.
The refinery, acquired in 2008 by LyondellBasell's former
management, has not fulfilled economic projections made at the
time of the acquisition.
"Divesting the refinery would help us to focus on our core
petrochemical assets at Berre. We will move diligently and
expeditiously to prepare an offering memorandum for interested
bidders," said Jean Gadbois, General Manager of the Berre
The Berre site also has a steam cracker and world-scale polypropylene and
that are owned and operated by a subsidiary of LyondellBasell.
The company is not looking to sell the olefins and polyolefins
units at Berre.
April 1 2008 LyondellBasell
Completes Refinery Purchase in France
Industries announced today that it has completed the purchase
of the Shell oil refinery and
associated infrastructure and businesses at the Berre l'Etang
petrochemical complex in France.
The refinery, with
production capacity of 105,000 barrels per day, is adjacent
to a LyondellBasell polyolefins complex at Berre that
includes a steam cracker, butadiene
extraction unit and world-scale polypropylene and
polyethylene plants. LyondellBasell also has a
polyethylene plant and a site that produces propylene oxide,
MTBE and ETBE nearby at Fos-sur-Mer.
of the Berre refinery enhances raw material integration for
our operations in France and supports our polyolefins
business in Europe," said Volker Trautz, CEO of
LyondellBasell. "Furthermore, this transaction puts us
in a better position to build upon our fuels and chemicals
businesses in Europe."
been the largest customer of the Berre refinery, purchasing
naphtha, vacuum gas oil (VGO) and liquefied petroleum gas
(LPG) as raw material for its steam cracker. Other refined
products include gasoline, diesel, jet fuel, bitumen and
heating oil. Approximately 1,500 employees will join
LyondellBasell through this transaction, including about 500
Shell employees who already operate LyondellBasell's assets
at the Berre complex.
In addition to its
industry leadership in polyolefins, LyondellBasell is the
largest producer of biofuels in the European merchant market
with approximately 1.2 million metric tonnes per year of
capacity at its plants in Fos-sur-Mer, France and Rotterdam,
Netherlands. The LyondellBasell plant at Fos-sur-Mer has the
flexibility to produce both MTBE (methyl tertiary butyl
ether) and bio-ETBE (ethyl tertiary butyl ether) in support
of the European biofuels directive. LyondellBasell also
operates a 268,000 barrels per day full-conversion refinery
in the United States at Houston, Texas.
Nov.14, 2012 LyondellBasell
LyondellBasell to Restore LDPE Capacity at Wesseling, Germany
LyondellBasell today announced that the company will restore a low-density
polyethylene (LDPE) line in Wesseling, Germany, that has been
out of service since January 2012.
Startup of the new line is targeted for mid-2013.
The Wesseling LDPE line has historically been used to produce LDPE grades for
healthcare applications. Restoration of this LDPE line will enhance the
company's ability to supply this important market. LyondellBasell also announced
the creation of a new sales group within its European specialty polyolefins
sales organization to further strengthen its commitment to, and support of,
customers in the medical industry.
"The restoration of this LDPE production line at Wesseling and the increased
focus we will obtain through our new sales organization will enable us to better
serve our customers and help them to optimize their supply chain through our
higher production capability," said Bob Patel, LyondellBasell's Senior Vice
President, Olefins and Polyolefins for Europe, Asia and International.
January 23,2012 [Source: ICIS news]
LyondellBasell's Wesseling LDPE production partly shut after blast
LyondellBasell’s low density polyethylene (LDPE) output at its polyolefins
production site in Wesseling near Cologne, Germany, remains partly shut
following an explosion over the weekend, the Netherlands-headquartered
producer said on Monday.
The blast, which occurred at one of two LDPE plants at the site on Saturday
morning, injured seven workers who were working in the area.
LyondellBasell said that the second LDPE plant and all other units at the
site were unaffected and are running normally.
The company were unable to disclose how much of its LPDE capacity has been
affected by the explosion. According to ICIS, LyondellBasell has
a total LDPE production capacity of 430,000 tonnes/year
at the Wesseling site.
“The incident was quickly brought under control by operations and site
emergency response and the affected unit was safely shut down,” said Andreas
Anker, a spokesperson for LyondellBasell.
“All other units at the Wesseling plant are not affected by this incident
and are running normal,” he added.
Anker said the cause of the incident is still unknown and will be fully
investigated in collaboration with the local authorities.
The seven workers suffered light injuries and were hospitalised for
observation before being released on Saturday, he added.
April 11, 2013 LyondellBasell
LyondellBasell Announces Plans for NGL
Fractionation at Corpus Christi
LyondellBasell announced the signing of agreements with TexStar MidStream
Services, LP under which TexStar will install two natural gas liquids (NGL)
fractionation units adjacent to the Corpus Christi, Texas, plant of
LyondellBasell affiliate Equistar Chemicals LP.
The fractionation units will be capable of processing a combined
63,000 barrels per day of NGLs produced from the Eagle
Ford shale into ethane, propane, butanes and natural gasoline. Equistar
will operate the fractionators for TexStar and will provide various utilities to
the facility from its adjacent Corpus Christi olefins facility. In addition,
Equistar will purchase ethane and propane produced from the units under a
long-term agreement. The NGLs will be used as feedstocks for Equistar's olefins
unit to produce ethylene and propylene.
The fractionators will be located on a 40-acre site owned by Equistar and leased
to TexStar. Construction will commence in April 2013 with startup projected for
"The fractionation facilities will enable us to diversify and increase our NGL
feedstock supply from nearby shale formations in the region in advance of our
upcoming capacity expansion at Corpus Christi, and provides TexStar the benefit
of our existing infrastructure at the site," said LyondellBasell CEO Jim
Gallogly. "This is another example of a project that can bring efficiency and
value and be quickly implemented to take advantage of low-cost natural gas and
NGLs in North America," Gallogly said. The company recently announced plans to
expand ethylene capacity at Corpus Christi by 800 million pounds per year.
TexStar Midstream Services, LP, based in San Antonio, Texas, provides a full
range of midstream services to its customers including gathering, treating, and
processing of natural gas and NGLs.
LyondellBasell Evaluating Further Expansion
At Channelview Site
LyondellBasell announced today that it is
evaluating a further expansion project at its petrochemical plant in
Channelview, Texas, that would
potentially add up to 550 million pounds-per-year of
ethylene capacity. Preliminary engineering work is already underway to
assess expansion feasibility. If the project proceeds, the anticipated time
frame for completion would be 2017.
The proposed expansion project would be in
addition to work already underway to install two large cracking furnaces at the
Channelview site that are slated
to increase production by 250 million pounds-per- year
when construction work is expected to be completed early next year.
In addition to expansion at
Channelview, LyondellBasell is
increasing ethylene capacity at two other
Texas plants. An 800 million pounds-per-year
expansion has just been completed in La
Porte. And an additional 800 million pounds
of capacity are being added at the Company's site in
Corpus Christi, which is
scheduled for completion in late 2015. When all three are completed,
a total of 1.85 billion pounds of ethylene capacity
are expected each year. This figure will increase to 2.4
billion if the additional expansion project is finalized.
"Our strategy continues to be the
cost-effective expansion of existing facilities to take swift advantage of
abundant supplies of low cost natural gas and ethane from shale production,"
said Tim Roberts, Executive Vice
President, Olefins & Polyolefins, Americas. "The additional ethylene capacity
we are already adding at our three Texas
plants through existing expansion projects is the equivalent of constructing a
new stand-alone cracking unit."
Ethylene and related products produced by
LyondellBasell are used to manufacture numerous materials that are essential to
consumer durable products, flexible packaging, and automotive applications.
LyondellBasell is currently the fifth largest producer of ethylene globally.
Aug 10, 2015
LyondellBasell Announces Definitive Agreement to Acquire SJS Plastiblends
Strategic acquisition will expand capabilities and footprint
in India's growing automotive plastics market
LyondellBasell, one of the world's largest plastics, chemical and refining
companies, today announced that it has entered into a definitive agreement for
the acquisition of SJS Plastiblends Pvt. Ltd. (SJS),
a polypropylene compounds (PPC) manufacturer,
located in Aurangabad, Maharashtra, India. This
strategic acquisition will expand LyondellBasell's existing footprint in India
and further enhance the Company's position in India's growing automotive market.
"This acquisition will expand our global PPC manufacturing footprint and allow
us to better compete in the long-term growth of India's automotive market," said
Bhavesh V. (Bob) Patel, CEO and Chairman of the Management Board of
LyondellBasell. "We are very proud of the strong, global reputation we have
built by manufacturing high-quality products and providing excellent service to
our customers. We look forward to continuing this tradition in India through
Globally, India represents the fourth largest growth market for automobiles,
with three million new vehicles produced each year. According to IHS Inc.,
India's automotive market is expected to continue growing by six to eight
percent annually through 2021. LyondellBasell has supplied the Indian market
through imports and tolling arrangements since 2009.
The acquisition agreement was signed on August 7, 2015, and the transaction is
expected to close in late 2015. This acquisition will follow the Company's
strategic growth model by enhancing its competitive position in attractive
markets. Until the transaction is complete, SJS will conduct business as usual
and continue to provide the same level of support, service and high quality
products to its customers.
SJS was established in 1996 to create products that improve the performance and
aesthetics of plastics in automotive supply. SJS has approximately 60 employees
and one manufacturing site with annual production capacity of approximately
12,000 metric tons of polypropylene compounds (PPC). These compounds are
used in the production of thermoplastic materials for the automotive, home
appliances and other markets. Singhi Advisors were financial advisors to SJS on
Aug 18, 2015
LyondellBasell Announces Sale of
LyondellBasell, one of the world's largest plastics, chemical and refining
companies, today announced that YPF S.A. and Grupo Inversor Petroquimica S.L.
have accepted an offer to purchase LyondellBasell's Argentina-based,
wholly-owned subsidiary Petroken Petroquimica Ensenada
The sale is expected to close in late 2015
following Brazilian antitrust authority (CADE) approval. The transaction is
valued at $145 million on a debt and cash free basis. Based on working capital
estimates as of June 30, 2015, expected cash proceeds are $162 million. Petroken
operates a 180 kiloton polypropylene plant in Ensenada
and is a leading polypropylene producer in Argentina.
"As part of our long-term growth strategy, we will continue to focus on regions
and assets that will have the greatest impact on value-creation for our
shareholders," said Tim Roberts, Executive Vice President, Global Olefins and
Until closing, Petroken will continue to provide the same level of support,
service and high quality products to its customers.
November 19, 2015
LyondellBasell Developing World's Largest
LyondellBasell, one of the
world's largest plastics, chemical and refining companies, today
announced that it is advancing plans to build the
world's largest propylene oxide (PO) and tertiary butyl alcohol
(TBA) plant in the Houston
area. This project, considered to be the largest of its kind,
is expected to create up to 2,500 construction jobs and
approximately 100 permanent positions.
"We are moving forward in a
deliberate fashion to develop what could become the single
largest capital investment in LyondellBasell's history," said
Chief Executive Officer Bob Patel.
"We continue to believe that the combination of low-cost natural
gas liquids available on the U.S. Gulf Coast, along with our
leading proprietary PO/TBA technology, will allow this proposed
project to capture maximum advantage of market opportunities."
The Company will soon begin
front-end engineering design work and file environmental permit
applications. This phase will also include funding to order
long lead-time equipment. A final investment decision is
expected to be made following completion of the engineering
The Company's complex located
Texas was selected as the site for the PO/TBA
unit. The Bayport Choate site near
Pasadena was selected for an
ethers unit which will produce oxy-fuels for high octane
gasoline. A split facility design between the
Channelview and Bayport sites
will optimize the product balances between the sites and create
This project is part of
LyondellBasell's previously announced $3
- $4 billion expansion effort that will take place on the
U.S. Gulf Coast over the next five years. LyondellBasell has
already completed work on ethylene expansion projects at the
Company's La Porte and
Channelview sites in Texas. A
third ethylene expansion project is currently underway in Corpus
announced the PO/TBA project in August of 2014. Annual
production capacities are anticipated to be
one billion pounds of propylene oxide
and two billion pounds of tertiary butyl
The plant will sell PO in the
global marketplace to meet growing demand for polyurethanes,
which are used primarily for the manufacture of bedding,
furniture, carpets and car seats. TBA and its derivatives, which
include oxy-fuels, 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.
November 30, 2015 LyondellBasell
LyondellBasell Announces Definitive
Agreement to Acquire PP Compounding Business of Zylog Plastalloys Pvt. Ltd.
LyondellBasell, one of the
world's largest plastics, chemical and refining companies, today
announced that it has entered into a definitive agreement to
acquire the polypropylene (PP) compounding
assets of Zylog Plastalloys Pvt.
Ltd. (Zylog) of India.
Upon completion of the
acquisition, LyondellBasell will double its automotive customer
base in India and become the
third largest producer of PP compounds in the country with an
annual capacity of 44,000 metric tons (97 million pounds).
Earlier this year,
LyondellBasell acquired SJS Plastiblends
Pvt. Ltd. (SJS), a manufacturer of PP compounds located
in Aurangabad, Maharashtra, India.
The Zylog acquisition includes manufacturing sites in Sinnar,
Maharashtra, and in Chennai,
"We are very optimistic about
India's economic growth and
rapidly expanding automotive market," said
Bhavesh (Bob) Patel, CEO and
chairman of the management board of LyondellBasell. "The
acquisition of SJS and Zylog are part of our plan to
strategically expand our footprint where it makes sense from an
economic and strategic perspective. With these investments,
LyondellBasell will be a leading producer of PP compounds in all
major automotive growth regions of the world," he added.
LyondellBasell is the world's
largest producer of PP compounds with an annual capacity of 1.2
million metric tons (2.6 billion pounds). These compounds are
used to manufacture automotive parts, home appliances and other
products. LyondellBasell has supplied the Indian market through
imports and tolling arrangements since 2009.
India represents the fourth largest growth market for
automobiles globally with 3 million new vehicles produced each
year. According to IHS Inc., India's
automotive market is expected to continue growing by 6 to 8
percent annually through 2021. Additionally, the World Bank has
predicted India's GDP to grow
at a rate of 8 percent by 2017.
The transaction is expected
to close in early 2016. Until the transaction is complete, Zylog
will conduct business as usual and continue to provide the same
level of support, service and high quality products to its
The purchaser is Basell
Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of
Zylog is a privately held corporation established in
India in 1984. The company
produces PP compounds, thermoplastic vulcanizates (TPVs) and
thermoplastic elastomers (TPEs) based on ethylene propylene
diene monomer (EPDM) rubber and styrene chemistry.
LyondellBasell is acquiring Zylog's PP compounding and
warehousing assets, and the trademarked brands Hipolyene, Hiflex
and Entek. Zylog owns two PP compounding facilities in
India; one located in Sinnar,
Maharashtra, and one in Chennai,
Tamil Nadu. Both facilities house a world-class production setup
with a variety of extrusion lines, mixers, state-of-the-art
quality assurance and lab facilities, and research and
development. Zylog Plastalloys will continue to manufacture and
market TPV (Neoplast) and TPE (Neoflex).
April 7, 2016
LyondellBasell Completes Second
Polypropylene Compounds Acquisition in India
LyondellBasell, one of the world's
largest plastics, chemical and refining companies, today announced that it
completed the previously announced acquisition of the polypropylene (PP)
compounding assets of Zylog Plastalloys Pvt. Ltd.
in India. The company entered into a definitive agreement to acquire Zylog's PP
compounding assets in November 2015.
LyondellBasell has supplied the
Indian market through imports and tolling arrangements since 2009. In October
2015, LyondellBasell acquired SJS Plastiblends Pvt. Ltd.'s
PP compounding business which is located in Aurangabad, Maharashtra. With
the acquisition of Zylog's manufacturing operations in Sinnar, Maharashtra, and
Chennai, Tamil Nadu, LyondellBasell is now the third largest producer of PP
compounds in India with an annual capacity of 44,000 metric tons (97 million
In addition to the already existing
product lines offered at these sites, LyondellBasell will produce its
Hostacom glass fiber-reinforced, mineral filled and unfilled colored grades
as well as Hifax high impact thermoplastic olefins. These compounds are
used to manufacture automotive parts, home appliances and other products.
"Our investments in India demonstrate
LyondellBasell's continued focus on strategic growth projects that increase our
competitive advantage and provide a strong return on assets," said Bhavesh (Bob)
Patel, CEO and chairman of the management board of LyondellBasell. "We are proud
of the high-quality products we provide to the automotive manufacturers, and our
expansion in India underscores our commitment to meeting customer needs
globally," he added.
LyondellBasell is the world's largest
producer of PP compounds with an annual capacity of 1.3 million metric tons (2.8
India represents the fourth largest
growth market for automobiles globally with 3 million new vehicles produced each
year. According to IHS Inc., India's automotive market is expected to continue
growing by 6 to 8 percent annually through 2021. In its latest Global Economic
Prospect report, the World Bank projected that India's GDP will grow by 7.8
percent in 2016 and 7.9 percent annually in 2017 and 2018.
July 29, 2016
LyondellBasell to Build High Density
Polyethylene Plant on U.S. Gulf Coast
LyondellBasell, one of the world's
largest plastics, chemical and refining companies, has made the final investment
decision to build a High Density Polyethylene (HDPE)
Plant on the U.S. Gulf Coast. The plant will have an annual capacity of 1.1
billion pounds (500,000 metric tons) and will be
the first commercial plant to employ LyondellBasell's new proprietary
Hyperzone PE technology. The project is
expected to create up to 1,000 jobs at the peak of construction and as many as
75 permanent positions. Start-up is planned for 2019.
"Innovation is key to our future
success. This new proprietary technology will have the capability to produce a
wide range of HDPE products with enhanced properties, many of which have the
potential to exceed industry benchmarks," said Bob Patel, LyondellBasell's CEO.
HDPE is used in numerous applications
such as pipe, bottles, containers, toys, film, healthcare articles, plastic fuel
tanks and industrial packaging. LyondellBasell's Hyperzone PE enhanced
properties include improved stress crack resistance and enhanced balance between
stiffness and impact strength.
Hyperzone PE technology is a cascade gas phase process based on
LyondellBasell's unique Multizone circulating reactor technology and was
developed at LyondellBasell's European research and development centers located
in Frankfurt, Germany, and Ferrara, Italy. The new proprietary technology will
have the capability to produce a wide range of high-performance multi-modal HDPE
products. In certain applications, Hyperzone PE resins allow customers to
use less PE resin per unit produced, resulting in improved resource efficiency
and savings for customers. While the Hyperzone PE plant will be located
on the U.S. Gulf Coast, the products produced will serve markets across the
"We are continuing to invest in
growth-oriented projects like Hyperzone PE, where we see long term
feedstock advantage," Patel added. "We believe that the combination of our
latest polyolefins technology and new ethylene capacity from low cost
debottlenecks will provide a good return on investment. Additionally, this
project enhances our ethylene integration strategy, allowing us to capture value
across the ethylene value chain."
LyondellBasell currently produces a
total of 7.8 billion pounds (3.5 million metric tons) of HDPE annually,
including capacity of its joint venture facilities. The company is a leading
worldwide producer of all forms of PE with an annual capacity of 13.2 billion
pounds (6 million metric tons). Consumer products made from PE are commonly
LyondellBasell is a global leader in
the development and licensing of polyolefin processes and related catalysts and
plans to make the Hyperzone PE technology available for licensing in the
future. The company has over 250 polypropylene and polyethylene lines licensed
The Hyperzone PE project is
part of LyondellBasell's ongoing growth plan. Recently, the company completed
work on ethylene expansion projects at the company's La Porte and Channelview
sites in Texas. A third ethylene expansion project is currently underway in
Corpus Christi, Texas. Additionally, development of a world scale propylene
oxide and tertiary butyl alcohol (PO/TBA) plant at the company's Channelview
site is progressing.
Sept. 9, 2016
LyondellBasell Will Build High Density Polyethylene Plant at La Porte, Texas,
LyondellBasell, one of the world's
largest plastics, chemical and refining companies, has selected its
La Porte, Texas, manufacturing complex as the site
for a new High Density Polyethylene (HDPE) Plant.
The plant will be the first commercial plant to employ LyondellBasell's new
proprietary Hyperzone PE technology and will
have an annual capacity of 1.1 billion pounds (500,000
metric tons). The project is expected to create up to 1,000 jobs at the
peak of construction and as many as 75 full time positions. Construction is
scheduled to begin in early 2017 with start-up planned for
"This project represents the next
generation of technology," said Bob Patel, LyondellBasell CEO and Chairman of
the Management Board. "This location is ideal for this facility because of the
feedstock advantage we enjoy, the ability to ship product around the world and,
most importantly, the outstanding workforce that the Gulf Coast has to offer."
Located on the south shore of the
Houston Ship Channel, LyondellBasell's La Porte complex spans 540 acres and
produces ethylene, propylene, Linear Low-Density Polyethylene (LLDPE) and
Low-Density Polyethylene (LDPE). LLDPE, LDPE and HDPE are thermoplastics used to
manufacture a wide variety of plastic products used in everyday life such as
bottles, bags, containers, toys, food packaging, healthcare articles, automotive
applications and industrial packaging. The La Porte complex is also the primary
location for LyondellBasell's Acetyls business with an integrated chain of
manufacturing units producing methanol, acetic acid and vinyl acetate monomer (VAM).
VAM is used in household latex paint, adhesives, food packaging, wire and cable
coatings and automotive safety glass.
HDPE is one of the most versatile
plastics because it is lightweight, yet very strong; impact resistant; weather
resistant; it can be molded into almost any shape and is widely recyclable.
HDPE resins produced using
LyondellBasell's new proprietary Hyperzone PE technology will exhibit
enhanced properties such as an improved stress crack resistance and an improved
balance between stiffness and impact strength. In certain applications,
Hyperzone PE resins may allow customers to use less PE resin per unit
produced, resulting in improved resource efficiency and savings for
customers. This technology was developed at LyondellBasell's European research
and development centers located in Frankfurt, Germany, and Ferrara, Italy.
LyondellBasell currently produces a
total of 7.8 billion pounds (3.5 million metric tons) of
HDPE annually, including capacity of its joint venture facilities. The
company is a leading worldwide producer of all forms of PE
with an annual capacity of 13.2 billion pounds (6 million
metric tons). LyondellBasell is a global leader in the development and
licensing of polyolefin processes and related catalysts and plans to make the
Hyperzone PE technology available for licensing in the future. The company
has over 250 polypropylene and polyethylene lines licensed worldwide.
The Hyperzone PE project is
part of LyondellBasell's ongoing growth plan. Recently, the company completed
work on ethylene expansion projects at the La Porte and Channelview sites in
Texas. A third ethylene expansion project is currently underway in Corpus
Christi, Texas. Additionally, development of a world scale propylene oxide and
tertiary butyl alcohol (PO/TBA) plant at the company's Channelview site is
The La Porte Complex
comprises two companies of LyondellBasell.
Equistar Chemicals business produces
ethylene, propylene, linear low-density polyethylene
and low-density polyethylene.
The Acetyls business includes an integrated
chain of manufacturing units producing acetic acid
and vinylacetate monomer (VAM).
October 25, 2017
LyondellBasell plans $2 billion
plastics, chemical project
LyondellBasell said it is planning to build a more than $2 billion petrochemical
and plastics plant along the Gulf Coast, perhaps in the Houston area, but a
final decision on whether to go forward with the project is likely a year away.
Bob Patel, the Houston chemical company's chief executive, said the plant would
use propane, a component of natural gas, to make chemicals and the plastic
polypropylene. The plant would serve North and South American markets.
Patel said that market conditions ultimately will decide whether the project
will proceed, but he hopes to move forward with the plans by the end of 2018.
LyondellBasell already is in the midst of a massive expansion along the Houston
Ship Channel, building a plastics plant in La Porte and beginning construction
soon on a $2.4 billion chemicals complex spanning two locations in Channelview
The region's petrochemical boom has been driven largely by the cheap and ample
natural gas that is produced in Texas shale fields and used as a feedstock for
chemical plants. Most of the projects rely on ethane, another component of
natural gas. Ethane, however, is much cheaper than propane because it is almost
exclusively used in the petrochemical sector, while propane is in demand for
heating and other purposes.
While propane costs more, Patel said, he expects growing domestic demand for
polypropylene as a plastic and fabric in the years ahead. Unlike the world's
most common plastic, polyethylene, polypropylene also can be used as a fabric.
In the United States, a key market for polypropylene is the automobile industry,
which uses the plastic in bumpers, interior trim and even under the hood.
Globally, packaging and plastic products for surging middle classes in Asia
represent the biggest markets for polypropylene, Patel said.
LyondellBasell's expansion along the Ship Channel will add a plant to make
propylene oxide, which is used to make bedding, carpeting, coatings, building
materials and adhesives, and the by-product tertiary butyl alcohol, which is
refined into an fuel additive. The plant will have the biggest production
capacity in the world for these chemicals, capable of manufacturing 1 billion
pounds of propylene oxide and 2.2 billion pounds of tertiary butyl alcohol a
The company will refine tertiary butyl alcohol into fuel additives at its nearby
Bayport facility in Pasadena. Construction on the project is slated to begin
next year, with completion scheduled for 2021.
In the last few years, LyondellBasell also has completed ethylene expansions at
its Channelview, La Porte and Corpus Christi sites, as well as a plastics
expansion in Matagorda.
Other companies are expanding petrochemical operations along the Gulf Coast,
too. DowDuPont recently started up a massive ethylene and plastics plants in
Freeport. Chevron Phillips Chemical Co. and Exxon Mobil Corp. are both
completing massive ethane processing plants in the Baytown area. Houston's
Occidental Petroleum Corp. and the Mexican chemical maker Mexichem opened a
smaller ethane processing plant earlier this year outside Corpus Christi.
The American Chemistry Council, a trade group, estimates that the Texas Gulf
Coast accounts for about $70 billion of the $185 billion in petrochemical plants
completed since 2010 or planned through 2023.
February 15, 2018
LyondellBasell Announces Entry into a
Definitive Agreement to Acquire A. Schulman, Inc.
- Creates an
industry-leading compounding business with combined revenue
of $4.6 billion1
and adjusted EBITDA of $446 million2
over the last 12 months
- Expects to capture
$150 million in run-rate cost
synergies within two years, while being accretive to
earnings within the first full year following the close,
creating significant value for shareholders
- Doubles the size of
LyondellBasell's existing compounding business and
establishes a platform for future growth with reach into
additional high-growth markets
- Complementary strengths
and capabilities will provide customers with a full range of
innovative products and end-to-end solutions
LyondellBasell, one of the
largest plastics, chemicals and refining companies in the world,
and A. Schulman, Inc. , a leading global supplier of
high-performance plastic compounds, composites and powders,
today announced that they have entered into a definitive
agreement under which LyondellBasell will
acquire A. Schulman for a total consideration of
$2.25 billion. The
acquisition builds upon LyondellBasell's existing platform in
this space to create a premier Advanced
Polymer Solutions business with broad geographic reach,
leading technologies and a diverse product portfolio.
"The acquisition of A.
Schulman is a natural extension of our current platform. This
combination will allow us to provide our customers with a wider
range of innovative solutions while adding the ability to serve
high-growth end markets beyond the automotive sector, such as
packaging and consumer products, electronics and appliances,
building and construction, and agriculture," said
Bob Patel, Chief Executive
Officer of LyondellBasell. "By leveraging our proven approach to
operational, commercial and business excellence, the combined
business will create significant value for our shareholders and
"This transaction, which
provides our shareholders with a compelling, immediate cash
premium, represents the culmination of a robust assessment of
strategic alternatives undertaken by our Board of Directors,"
said Joseph M. Gingo, Chairman,
President and Chief Executive Officer of A. Schulman, Inc. "We
are delighted to join forces with LyondellBasell, an industry
leader we have admired for many years. LyondellBasell not only
shares our commitment to meeting customers' demanding
requirements, but with its scale and resources, the combined
business will be better positioned to address a broader range of
customer needs by integrating across applications and offering
customers a wider range of solutions in attractive and growing
markets. We also expect this combination to create significant
opportunities for A. Schulman employees, whose professionalism
and expertise will be integral to advancing LyondellBasell's
vision, values and commitment to making a positive global
Under the terms of the agreement, LyondellBasell will acquire A.
Schulman for a total consideration of
$2.25 billion. LyondellBasell will purchase 100 percent
of A. Schulman common stock for $42
per share in cash and one contingent value right per share and
assume outstanding debt and certain other obligations. In
addition, the contingent value rights generally will provide a
holder with an opportunity to receive certain net proceeds, if
any are recovered, from certain ongoing litigation and
government investigations relating to A. Schulman's Citadel and
LyondellBasell is using
cash-on-hand to finance the acquisition. LyondellBasell expects
to achieve $150 million in
run-rate cost synergies within two years, primarily by
leveraging its well-established approach to cost discipline and
productivity, as well as its culture of operational, business
and commercial excellence. Further, the acquisition is expected
to be accretive to earnings within the first full year following
The combined businesses had
revenues of $4.6 billion and
adjusted EBITDA of $446 million
over the last 12 months.
The proposed acquisition,
which has been unanimously approved by the respective boards of
LyondellBasell and A. Schulman, is subject to customary closing
conditions, including regulatory approvals and approval by A.
Schulman shareholders. The acquisition is expected to close in
the second half of 2018.
About A. Schulman
A. Schulman, Inc. is a leading international supplier of
high-performance plastic compounds,
composites and resins headquartered in Akron,
Ohio. Since 1928, the company
has been providing innovative solutions to meet its customers'
demanding requirements. The company's customers span a wide
range of markets, such as packaging, mobility, building &
construction, electronics & electrical, agriculture, personal
care & hygiene, sports, leisure & home, custom services and
others. The company employs approximately 5,100 people and has
54 manufacturing facilities globally. Additional information
about A. Schulman can be found at www.aschulman.com.
June 15, 2018
LyondellBasell and Odebrecht S.A. Enter
Into Exclusive Discussions Concerning Braskem
LyondellBasell, one of the
largest plastics, chemicals and refining companies in the world,
and Odebrecht S.A., the
controlling shareholder of Braskem,
a leading plastic producer in the Americas, in a joint statement
today announced the companies have entered into exclusive
discussions regarding a potential transaction between
LyondellBasell and Braskem.
The companies jointly stated:
"Both LyondellBasell and
Braskem share a strong culture of operational excellence and
legacies of value-creating innovation. We believe that the
potential combination of LyondellBasell's
and Braskem's complementary strengths, product portfolios
and operational footprints would create significant value for
our shareholders, customers and employees."
"Braskem's board of directors
and management have been informed of the existence of these
discussions. The discussions are preliminary and no agreements
have been reached. Among other things, the parties will need to
complete appropriate diligence, negotiate definitive agreements
and obtain corporate approvals. There can be no assurance the
discussions will result in a transaction or on what terms any
transaction may occur. LyondellBasell and Odebrecht S.A. do not
intend to make any further comment unless and until the
discussions conclude or are required by applicable law."
November 17, 2018 Reuters
LyondellBasell close to binding offer for
Brazil's Braskem: sources
LyondellBasell Industries NV is close to
presenting a binding offer to acquire control of Brazilian
petrochemical company Braskem SA, two people with knowledge of the matter
LyondellBasell is discussing the extension of a long-term naphtha supply
contract with Petroleo Brasileiro SA seen as pivotal to valuing Braskem, and
talks between the companies are expected to finish over the next days, the
sources said, asking for anonymity because talks are private.
A binding offer could be delivered as soon as the end of this month, the people
Once a long-term supply contract is established, LyondellBasell is expected to
bid for control of Braskem, first through an offer to
controlling shareholder Odebrecht SA.
Odebrecht, a Brazilian conglomerate involved in the country’s widest-ever
corruption probe, has been forced to sell assets over the last two years.
The offer will include cash and shares, the people added. The same value per
share would be extended to Petrobras, the Brazilian state-controlled oil
company, which is a minority shareholder in Braskem, as well as a supplier.
One of the people said Petrobras is still discussing whether to sell its full
stake in Braskem or hold onto shares in the combined company. If concluded, the
deal would create the world’s largest petrochemical company.
Odebrecht, LyondellBasell and Petrobras did not immediately respond to emails
seeking comment on the matter.
ブラジルの国営石油会社Petrobras SAは2016年1月に Braskem の持株
Marcelo Bahia Odebrechtは19年の懲役刑を受けた。
June 18, 2019
LyondellBasell and Neste announce commercial-scale production of bio-based
plastic from renewable materials
This collaboration marks the first
time bio-based polypropylene and bio-based low-density polyethylene were
produced simultaneously at commercial scale
LyondellBasell, one of the largest
plastics, chemicals and refining companies in the world, and
Neste, the world's
largest producer of renewable diesel from waste and residues, today
jointly announce the first parallel production of
bio-based polypropylene and bio-based
low-density polyethylene at a commercial scale.
The joint project used Neste's renewable
hydrocarbons derived from sustainable bio-based raw materials, such as waste
and residue oils.
The project successfully produced several
thousand tonnes of bio-based plastics which are approved for the production
of food packaging and being marketed under
Circulen Plus, the new family
of LyondellBasell circular economy product brands.
"LyondellBasell has an innovative spirit
that spans decades, and an achievement like this showcases concrete actions
we are taking in support of a circular economy," said Richard Roudeix,
LyondellBasell Senior Vice President of Olefins and Polyolefins for
and International. "Through the use of renewable resources, we are
contributing to the fight against climate change and helping our customers
achieve their environmental targets."
"We are excited to enable the plastics
industry to introduce more bio-based material into its offering. It is very
satisfying to see Neste's renewable hydrocarbons performing perfectly in a
commercial scale production of bio-based polymers, providing a drop-in
replacement option to fossil materials," said Neste's President and CEO
Peter Vanacker. "This pioneering
collaboration with LyondellBasell marks a major milestone in the
commercialization of Neste's renewable polymers and chemicals business
focusing on developing renewable and circular solutions for forward-looking
An industry first
This achievement is extraordinary in that it combined Neste's unique
renewable feedstock and LyondellBasell's technical capabilities.
LyondellBasell's cracker flexibility allowed it to introduce a new renewable
feedstock at its Wesseling, Germany site,
which was converted directly into bio-based polyethylene and bio-based
polypropylene. An independent third party tested the polymer products using
carbon tracers and confirmed they contained over 30% renewable content.
LyondellBasell sold some of the renewable
products produced in the trial to multiple customers, one of which is
Cofresco, a company of the Melitta Group and with brands like Toppits®
and Albal®, Europe's leading
supplier of branded products in the field of household film. Cofresco plans
to use the Circulen Plus bio-based polyethylene to create sustainable
food packaging materials.
2008/6/13 Neste Oil
Neste Oil to build a NExBTL
renewable diesel plant in Rotterdam
Neste Oil is to build an
plant to produce
renewable diesel in
Rotterdam in the Netherlands. Construction will start immediately and the
facility is scheduled to be completed in 2011. Total cost of the investment
is projected to be Euro670 million. Neste Oil announced its decision to go
ahead with a similar-sized plant in
in November 2007. Both plants are linked to Neste Oil’s
goal of becoming the world’s
leading producer of renewable diesel fuel.
Corporation has made the final investment
decision on additional renewable products
production capacity in Singapore. The
decision is based on a growing global market
demand for low-carbon solutions in transport
and cities, aviation, polymers and
worth approximately EUR 1.4 billion will
renewable product overall capacity in
Singapore by up to 1.3 million tons per
annum, bringing the total renewable
product capacity close
to 4.5 million tons annually in 2022.
The company’s target is to start up the new
production line during the first half of
“Neste is in
the business of helping transport and
cities, aviation, polymers and chemicals
customers make their business more
sustainable and will continue to lead the
way for renewable products. We are already a
global leader in renewable products produced
from waste and residues. This investment
marks an important step in the execution of
our profitable growth strategy globally,”
says Peter Vanacker, President and CEO of
As a result of
the investment, Neste will have more options
to choose between different product
solutions in the whole production system. In
addition to producing renewable diesel, all
Neste’s renewable product refineries are
able to produce renewable aviation fuel and
raw materials for various polymers and
chemicals materials. The investment in
Singapore will include additional logistics
capabilities and enhanced raw material
pretreatment for the use of increasingly
low-quality waste and residue raw materials
also for the existing refinery.
will strengthen our competitive advantages
which are based on the global optimization
of our production and waste and residue raw
material usage. With our proprietary NEXBTL
technology, renewable products can be
refined flexibly from a wide variety of
lower quality waste and residues while the
end-products retain their high quality. We
will leverage the experience gained at our
existing sites in Singapore, Rotterdam, the
Netherlands and Porvoo, Finland, and thanks
to our continuous process and technology
development, the new production line will be
the best in class worldwide,” Vanacker
has a renewable
products production capacity of 2.7 million
tons annually. Of this total,
over one million is
produced in Singapore,
the same amount in
Rotterdam in the Netherlands and the
rest in Porvoo,
Finland. Before the new production
line in Singapore, we will continue
eliminating bottlenecks in our existing
the existing capacity to 3 million tons by
Dec. 23, 2019
Sinopec announce joint venture to manufacture propylene oxide and styrene
monomer in China
LyondellBasell, one of the largest
plastics, chemicals and refining companies in the world, today announced it has
signed a Memorandum of Understanding (MoU) to form a 50:50
joint venture (JV) with China Petroleum & Chemical Corporation (Sinopec),
one of the largest integrated energy and chemical companies in China.
Under the non-binding MoU, the JV
will construct a new propylene oxide (PO) and styrene
monomer (SM) unit in Zhenhai, Ningbo, China
to serve that country's domestic market. Once finalized, this JV will build upon
the existing LyondellBasell / Sinopec PO / SM joint venture in the same
location, which operates under the name Ningbo ZRCC
Lyondell Chemical Company Limited.
"Joint ventures in strategic regions
are an important part of our growth strategy," said Bob Patel, CEO of
LyondellBasell. "As demand for construction materials, packaging and furnishings
continues to grow, we see an opportunity to bring together our leading
technology with Sinopec's operational capabilities to further serve the Chinese
"This cooperation on the second PO /
SM unit between Sinopec and LyondellBasell is based on the successful
partnership of the first unit," said Dai Houliang, Chairman of Sinopec. "It is
in line with China's further opening-up policy, and is another achievement of
international cooperation of Sinopec. The products will help meet the increasing
demands from the domestic market."
"The formation of this JV with
Sinopec, a highly respected Chinese company and an existing PO / SM partner,
allows us to take advantage of the fastest growing market in the world for these
products," said Torkel Rhenman, Executive Vice President of LyondellBasell. "We
see tremendous opportunity to create additional value and grow the presence of
LyondellBasell in this very important market."
The new facility is expected to
produce 300 kilo tons per annum (KTA) of PO and 600 KTA of SM. Construction of
the facility will begin in early 2020 with start-up expected in 2022. The
facility will use LyondellBasell's leading PO / SM technology. Products produced
will be marketed equally by both companies which will significantly expand their
respective participation in the Chinese market for both PO and SM.
According to IHS Markit, China makes
up more than 60 percent of the Asian chemicals market demand and represents 40
percent of global chemicals growth over the next decade. PO and SM are core
products for LyondellBasell.
LyondellBasell operates five
wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian,
Dongguan and Changshu. In addition, LyondellBasell is currently building the
largest next generation PO / tertiary butyl alcohol (TBA) plant in the world
near Houston, Texas.
Mar 5, 2020
LyondellBasell and Bora
Sign Definitive Agreements to form Chinese Joint Venture
LyondellBasell, one of the largest
plastics, chemicals and refining companies in the world, today announced it has
signed definitive agreements to expand in China through a
50:50 joint venture with the Liaoning Bora Enterprise Group (遼寧寶來企業集團).
On September 5, 2019, LyondellBasell and Bora first signed a Memorandum of
Understanding and announced their intention to form this joint venture during a
ceremony in Panjin, China.
"China is a large market with growing
demand for high quality polyolefin products," said Bob Patel, CEO of
LyondellBasell. "The combination of LyondellBasell's leading technology and
Bora's operational excellence will allow us to reliably produce and provide
these needed products to local customers."
Under the agreements, the partners
will form a Sino-foreign joint venture, the Bora
LyondellBasell Petrochemical Co. Ltd, that will operate a
1.1 million metric tons per annum ethylene cracker
and associated polyolefin derivatives complex in
Panjin 遼寧省盤錦市, China, with a total expected cost of
approximately $2.6 billion. The complex will
produce products that serve the growing demands of various industries in China,
including packaging, transportation, building and construction, and healthcare
LyondellBasell will market the
polypropylene and high-density polyethylene which
will be produced utilizing LyondellBasell licensed Spheripol,
Spherizone polypropylene technologies and Hostalen ACP polyethylene
technology. Start-up is expected in the second half of 2020.
According to IHS Markit, Asia is the
largest and fastest growing polyolefin market in the world. China accounts for
more than 60 percent of the Asian polyolefins market and represents 40 percent
of global growth. Olefins and polyolefins are core products of LyondellBasell.
LyondellBasell expects to make its
equity contribution in the coming months. The formation of the JV is subject to
approvals by relevant government authorities, including antitrust review by the
State Administration for Market Regulation.
LyondellBasell announces agreement for expansion in China
LyondellBasell, one of
the largest plastics, chemicals and refining companies
in the world today announced it has signed a Memorandum
of Understanding (MoU) to expand in China through a
Joint Venture (JV) with the Liaoning Bora Enterprise
“China is the largest,
fastest growing market in the world for our core
products,” said Bob Patel, CEO of LyondellBasell. “The
formation of this JV with a well-respected Chinese
company allows us to increase our flexibility to produce
these products closer to the customer. We see tremendous
opportunity to create additional value and potentially
grow further in this very important market.”
This project will
utilize LyondellBasell technologies and significantly
expand the company’s participation in the rapidly
growing Chinese olefins & polyolefins. According to IHS
Markit, China makes up more than 60 percent of the Asian
chemicals market and represents 40 percent of global
chemicals growth over the next decade. Olefins and
polyolefins are core products for LyondellBasell.
currently operates three polypropylene compounding
facilities in China. These facilities are located in
Guangzhou, Suzhou and Dalian.
Under the MoU, Bora
and Lyondellbasell will form a 50 / 50 joint venture in
Panjin, China. The JV will operate a 1.1 million ton
ethylene cracker which will produce olefins &
polyolefins used in all manner of construction and
consumer products including, but not limited to, pipe,
durable plastic containers and agricultural films. The
polyolefin products produced at the complex will be
marketed by LyondellBasell.
When complete, the
plant will employ LyondellBasell’s Hostalen ACP
polyethylene technology and both Spheripol and
Spherizone polypropylene technologies. Bora began
construction of the state-of-the-art facility in 2019.
October 1, 2019 Reuters
China private refiner
spends big on petchem, seeks JV with LyondellBasell
China’s privately owned Bora
Enterprise Group has started construction of a $2.5 billion
petrochemicals plant in northeast China as it looks to finalize
a planned joint venture with LyondellBasell Industries, company
The steam cracker, which is
due for start-up by mid-2020, marks the biggest investment yet
in petrochemicals by one of China’s private refiners as the
country’s so-called “teapots” look to diversify away from the
saturated local fuel market.
Bora and LyondellBasell last
month signed a preliminary agreement to set up a 50-50 joint
venture for petrochemical projects, and are currently in talks
to finalize the deal, said two Bora sources and an official at
The 18 billion yuan ($2.5
billion) complex in the city of Panjin, Liaoning province, will
produce 800,000 tonnes per year (tpy) of polyethylene and
600,000 tpy of polypropylene, used to make products ranging from
pipes and plastic containers to agricultural films, the sources
one of more than 40 independent Chinese refiners that
have grown rapidly since late 2015 to account for a fifth of
China’s total crude oil imports, but which are now facing
threats to their survival.
Demand for gasoline and
diesel in the country is slipping, while the start-up of
mammoth, more efficient refineries like Hengli Petrochemical
and Zhejiang Petrochemical has led to a growing supply glut.
Many are now scrambling to
enter the higher margin petrochemicals sector, where China is
expected to account for around 40% of global demand growth over
the next decade.
Bora, which operates a
140,000 barrels per day refinery
and is also a bitumen歴青：最も重い石油producer,
was among the first to respond.
The $2.5 billion plant was
approved in 2017 by the Liaoning provincial government as
a key industrial project, while Bora in June secured a 10-year,
10.8 billion yuan ($1.5 billion) syndicated loan from Chinese
banks, two company sources with direct knowledge of the matter
The new facilities are slated
for start-up in the second quarter next year, said the two
A Bora spokesperson declined
“By combining the project
management and construction proficiency of Bora with
LyondellBasell’s technology and commercial experience, this
joint venture will leverage the expertise of both companies,”
Veronica Adamcik, a Houston-based spokeswoman for LyondellBasell,
invests in several chemical plants in China, including a joint
venture with a unit of state refiner Sinopec Corp (0386.HK).
The Panjin complex, which
LyondellBasell said is led by a 1.1 million tpy ethylene unit,
will source 1.64 million tonnes of feedstock such as naphtha
from the Bora refinery, but will need to procure another 1.1
million tonnes of propane or butane from the market, Bora
March 30, 2020
LyondellBasell to Slow
Construction on PO/TBA Project
LyondellBasell, one of the largest
plastics, chemicals and refining companies in the world, has informed the
engineering and construction contractors it will slow construction of its
world-scale propylene oxide (PO) and tertiary butyl alcohol (TBA) plant. The
company is limiting non-essential activities at this time due to ongoing
concerns related to the COVID-19 pandemic, including government orders designed
to limit human contact.
"The COVID-19 pandemic is
unprecedented and evolving. Because the PO/TBA site is currently under
construction and not producing needed products yet, in the interest of health
and safety we believe it is prudent to limit construction activities at this
time," said Torkel Rhenman, executive vice president, Intermediates &
Derivatives (I&D). "We remain committed to the completion of this strategic
investment incorporating our low-cost, next generation PO/TBA technology. Over
the next several weeks, we will be working with our contractors and suppliers to
develop a revised project timeline."
LyondellBasell's PO/TBA project broke
ground in August 2018. Currently, the project is more than 30 percent complete
with ongoing installation of key equipment and towers. The PO/TBA project has a
split-facility design to optimize synergies between two existing LyondellBasell
sites. A 140-acre PO/TBA plant is being built at the company's
Channelview, Texas facility, and an associated
34-acre ethers unit is being built at the company's
Bayport Complex in Pasadena, Texas. When complete, the PO/TBA plant will
produce approximately 1 billion pounds (470,000 metric
tons) of PO and 2.2 billion pounds (1 million
metric tons) of TBA annually, which will serve the growing need for
better insulation material, home comfort, cleaner fuels and other consumer
This announcement does not impact
LyondellBasell's ongoing operations at Channelview or Bayport, which are
designated as part of the United States' critical infrastructure by the
Department of Homeland Security.
LyondellBasell and Sinopec finalize joint venture to manufacture propylene
oxide and styrene monomer in China
LyondellBasell, one of the largest plastics, chemicals and refining companies
in the world and the China Petroleum & Chemical Corporation (Sinopec),
one of the largest integrated energy companies in China, today announced the
signing of an agreement to form a 50:50 joint venture (JV)
which will produce propylene oxide (PO) and styrene monomer (SM) in
China's domestic market. First announced on December 23, 2019, the JV will
operate under the name Ningbo ZRCC LyondellBasell New
Material Company Limited.
"As China's economy continues to
grow, so will demand for propylene oxide and styrene monomer. We are excited to
expand our relationship with Sinopec through this joint venture in order to
better serve China's domestic market. Sinopec's outstanding operational
capabilities combined with LyondellBasell's leading technology is a win-win,"
said Torkel Rhenman, Executive Vice President, Intermediates and Derivatives,
"Built on the remarkable success of our first Joint Venture, we are very
delighted to continue to enhance the important partnership with LyondellBasell
for future achievements. The establishment of the new Joint Venture is not only
in line with the national drive for further opening-up, but also a vital step
for Sinopec to deepen and expand our international operations," said Yu Baocai,
Senior Vice President of Sinopec Corp. "We have great expectations on the
new Joint Venture for propelling the economic development of the city of
Ningbo to a new level. During the 14th Five-Year Plan period (2021-2025),
Sinopec will continue to promote green industrial upgrading and
innovative transformation, contributing to the everlasting economic growth of
Zhejiang Province and Eastern China, and even the development of the chemical
industry in China."
The JV will construct a new PO and SM unit in Zhenhai Ningbo,
China. This new unit will have 275 kilotons per
annum (KTA) capacity of PO and 600 KTA capacity of SM. The unit will use
LyondellBasell's leading PO / SM technology. Products produced by the JV will be
marketed equally by both partners, significantly expanding their respective
participation in the Chinese market for PO and SM. Startup is expected at the
end of 2021.
The formation of the JV is subject to approvals by relevant government
authorities, including antitrust review by the State Administration for Market
Regulation. LyondellBasell expects to make its equity contribution to the JV
during the first quarter of 2021.
According to IHS Markit, China accounts for more than 60 percent of chemical
market demand in Asia and represents 40 percent of global chemical market growth
over the next decade. PO and SM are core products of LyondellBasell and are used
in a variety of applications including packaging, building and construction,
furnishings and transportation.
LyondellBasell operates five wholly-owned facilities in China which are located
in Guangzhou, Suzhou, Dalian, Dongguan and Changshu.
April 21, 2022
Announces Plans to Exit Refining Business
LyondellBasell today announced its
decision to cease operation of its Houston Refinery
no later than December 31, 2023. In the interim,
the Company will continue serving the fuels market, which is expected to remain
strong in the near-term, and consider potential transactions and alternatives
for the site.
"After thoroughly analyzing our
options, we have determined that exiting the refining business by the end of
next year is the best strategic and financial path forward for the Company,"
said Ken Lane, interim CEO of LyondellBasell. "These decisions are never easy
and we understand this has a very real impact on our refinery employees, their
families and the community. We are committed to supporting our people through
Lane added, "While this was a
difficult decision, our exit of the refining business advances the Company's
decarbonization goals, and the site's prime location gives us more options for
advancing our future strategic objectives, including circularity."
LyondellBasell's Houston Refinery has
a rated capacity to transform 268,000 barrels per day
of crude oil into transportation fuels and other products including
lubricants, chemical intermediates and petroleum coke.
September 9, 2021
LyondellBasell reviews strategic options for Houston refinery in US
LyondellBasell is considering strategic options, including a potential sale,
for its crude oil refinery located in Houston, Texas, US.
One of the largest of its kind equipped to process heavy, high-sulfur crude
oil, the LyondellBasell’s Houston refinery has a crude oil processing
capacity of 268,000 barrels per day.
Located on the US Gulf Coast, the refinery has access to interstate
pipelines and the Port of Houston.
LyondellBasell CEO Bob Patel said: “While the Houston Refinery is a
valuable, well-performing asset, we have long held the belief that it may be
even more valuable as part of a larger refining system.
“To that end, we are actively gauging market interest in this business with
the goal of delivering the greatest value to all our stakeholders.”
The latest move marks the company’s second attempt to
sell the refinery, which suffered heavy losses
in 2020 as fuel demand plummeted globally following the outbreak of
the Covid-19 pandemic, reported Reuters.
Lyondell attempted to sell the refinery in 2016, but the plan was hampered
due to repeated fires and blackouts at the facility that resulted in
production being reduced to a third compared to earlier that year.
Following its recovery in the same year, the refinery had attracted bids
worth more than $1bn from Saudi Aramco and Suncor.
Although bidding for the refinery was denied by Saudi Aramco, Reuters
previously cited sources as saying that an agreement collapsed when the
chemical firm sought to increase prices prior to receiving formal bids.
LyondellBasell said it cannot provide assurances regarding the review
process outcome or its timing.
Bank of America is serving as a financial advisor while Vinson & Elkins is
acting as legal counsel to the firm’s review process.
The Houston Refinery produces transportation fuels such as reformulated
gasoline, ultra-low sulfur diesel and jet fuel, as well as other products,
including lubricants, chemical intermediates and petroleum coke.
Located on the Houston Ship Channel, the facility covers an area of
approximately 700 acres. The refinery has been under Company ownership
この精油所はHouston Ship Channelにつくられた最初の精油所の一つで、1918年にSinclair Refining
がつくり、その後、Atlantic Richfield Company (ARCO)が買収した。
August 17 2006
Lyondell buys out Texas refinery partner
Lyondell Chemical Co. said late Wednesday it bought out
Citgo Petroleum Corp.' s stake in the Lyondell-Citgo
refinery, a giant 268,000 barrel-per-day facility on the Houston
Ship Channel, for $2.1 billion.
Citgo, a wholly-owned subsidiary of
Venezuela' s national oil company Petroleos de
Venezuela S.A. (PDVSA) since 1990, held a
41.25% stake in the joint refining venture.
Lyondell (LYO) said the move, made
when refining margins are running high along the Gulf Coast, will add
immediately to the company' s bottom line and help it to reduce its debt
At he same time, Lyondell said it
secured a five-year contract to buy 230,000 barrels of crude a day from
PDVSA to ensure a steady supply of oil to the refinery. Terms of the
deal were not disclosed, but Lyondell said the heavy, high-sulfur crude
that the plant is designed to process would be bought at market price.
Heavy crude typically brings a lower
price in the oil market because it costs more to refine. Lyondell-Citgo
was among the few U.S.-based refining operations that designed their
plants to cash in on that discount, handing in some of the highest
refining margins in the business. Those margins have improved
dramatically over the past year amid tight refining capacity and
continued strong demand for petroleum products.
Valero Energy Corp. (VLO) is another
Texas -based company that has tooled its refining operations to take
advantage of the price spread betwee n heavy and light crude oil.
Citgo' s exit from Lyondell-Citgo
brings to a close an increasingly strained relationship between the
partners, the result of Venezuelan President Hugo Chavez' s push to make
foreign oil companies pay higher production taxes while insisting that
Venezuela exert greater control over its strategic resources.
March 14, 2023
Commissions World's Largest PO/TBA Unit
PO 47万トン / TBA 100万トン
LyondellBasell today announces it has
successfully started up the world's largest propylene oxide (PO) and tertiary
butyl alcohol (TBA) unit in Texas. These new assets on the U.S. Gulf Coast have
an annual capacity of 470 thousand metric tons of PO and
one million metric tons of TBA and its derivatives.
"The world-leading capacity of the
new plant positions us to meet the growing demand for products essential for
modern life," said Chris Cain, LyondellBasell senior vice president for Global
Manufacturing. "Our company strives to be trailblazers in our industry and make
positive contributions through our environmental and sustainability initiatives.
This project advances our company's goals and creates value while meeting
customer and society's needs, and it involved a collaborative effort between
multiple project teams at Bayport, Channelview and around the world to deliver a
project of this magnitude."
The PO/TBA project is a split
facility design, intended to optimize production and leverage synergies shared
by the LyondellBasell Channelview Complex located in Channelview, Texas and the
LyondellBasell Bayport Complex located in Pasadena, Texas. The 140-acre PO/TBA
plant was built at the Channelview Complex, while
the associated 34-acre ethers unit, which will convert TBA to oxyfuels, was
built at the Bayport Complex.
The project is part of the company's
multi-billion dollar series of investments along the U.S. Gulf Coast. Based on
an analysis by the Greater Houston Partnership, the LyondellBasell PO/TBA
project is estimated to generate more than $450 million in tax benefits for the
county, school district, community college and other local taxing districts over
a 10-year period.
The development of LyondellBasell PO/TBA
operations began at the Bayport Complex, with the first PO/TBA unit starting up
in 1969. Through 50-plus years of global experience with PO/TBA operations and
applying new innovations in yield improvement and PO recovery, the PO/TBA plant
at the Channelview Complex is the most energy efficient PO/TBA facility in
Propylene Oxide (PO)
PO goes into making polyurethane foam typically used to create mattresses and
car and furniture seat cushions. It is also used to make insulation, which can
be used to increase the energy efficiency of homes and businesses.
Other common end uses for these
products include liquid detergents, toothpaste, cosmetics, paints and spandex
Tertiary Butyl Alcohol (TBA)
TBA is converted to produce two ether-based oxyfuels, methyl tertiary butyl
ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are
high-octane fuel additives that help gasoline burn more efficiently,
reducing emissions from automobiles.
June 1, 2023
LyondellBasell Pursues New Electric
Furnace (eFurnace) Technology, Collaborates with
Technip Energies and ChevronPhillips
LyondellBasell today announced it has
signed a memorandum of understanding (MOU) with Technip Energies and Chevron
Phillips Chemical to potentially design, construct and operate a demonstration
unit using Technip Energies' electric steam cracking
furnace technology (eFurnace by T.EN™). A
joint development agreement is expected to be signed later this year.
This new eFurnace technology could
enable the company to use renewable electricity as a heat
source for the olefins cracking process in the future, significantly
reducing the greenhouse gas (GHG) footprint of its olefins production process,
and helping the company meet its ambitious climate targets.
"We are taking decisive steps to
reduce our absolute scope 1 and 2 greenhouse gas emissions, while creating
solutions for everyday sustainable living," said Peter Vanacker, CEO of
LyondellBasell. "Deployment of an industrial-scale electric cracking furnace is
one option we are considering in this space because of its ability to reduce
furnace GHG emissions by up to 90% compared to a conventional furnace."
Construction of the demonstration
unit, which would be the first for LyondellBasell, is an essential step in the
development of eFurnace technology and a critical pre-condition for potential
future construction of a full-scale unit. It will enable the company to test the
technology and confirm continuous olefin production is possible using
electricity as a heat source.
"We are delighted to team up with
LyondellBasell and CPChem to bring the eFurnace by T.EN™ to fruition," said
Arnaud Pieton, CEO of Technip Energies. "Consistent with our purpose to engineer
a much-needed sustainable future, Technip Energies is making huge strides toward
reducing the CO2 emissions resulting from the production of ethylene
and this design will enable olefins producers to take advantage of the growing
supply of available renewable energy to operate the most energy-intensive part
of the plant."
The LyondellBasell Channelview site
offers an optimal environment for the demonstration unit due to its operational
excellence, feedstock flexibility and electric grid infrastructure, proximity to
the other MOU parties and access to expertise at the company's Houston
Technology Center. The three parties plan to assemble a joint development team
to support implementation of the project.
"Climate change is a global issue
that will take action from all segments of society, and we want to be part of
the solution by reducing the intensity of our carbon footprint," said Bruce
Chinn, President and CEO of Chevron Phillips Chemical. "This project supports
our efforts toward lowering the carbon intensity of our operations and
demonstrates our continued focus on accelerating change for a sustainable
LyondellBasell is committed to
reaching net zero scope 1 and scope 2 greenhouse gas (GHG) emissions by 2050 and
has set ambitious interim targets to reduce scope 1 and 2 GHG emissions 42%, and
scope 3 GHG emissions 30% by 2030, relative to a 2020 baseline. To reach these
targets, the company is deploying emissions reduction initiatives at its
sites. The company has also announced plans to develop an integrated hub in
Houston to support the growth of its circular and low carbon solutions business,
which will leverage existing capabilities at its sites in Houston, such as
Jan. 16, 2024
into Agreement to Acquire 35% of Saudi Arabia-based NATPET; Expands Core PP
Technology-enabled JV increases LYB access to advantaged feedstocks and
Transaction encompasses existing assets and planned growth projects
LyondellBasell (LYB) today announced
it entered into an agreement to acquire a 35% interest
in Saudi Arabia–based National Petrochemical Industrial
Company (NATPET) from Alujain Corporation (Alujain)
for approximately $500 million. Enabled by its Spheripol polypropylene
(PP) technology, the joint venture positions LYB to grow and upgrade its core PP
business through access to advantaged feedstocks, plus additional product
marketing capacity, in a strategic region.
National Petrochemical Industrial Co. (NATPET)
is a Saudi Arabian company producing Polypropylene (PP) resin since the year
2009. The plant is located in Yanbu Industrial City
on the west coast of Saudi Arabia having a name-plate production
capacity of 400,000 MT/Year.
NATPET PP plant is using the
state-of-the-art LyondellBasell licensed Spheripol technology producing a
market-defined range of distinguished quality of PP resins. The plant is
enjoying the sustainable advantage of producing its own high quality main
raw material, Propylene, through an integrated Propane
Dehydrogenation (PDH) plant.
closes acquisition of NATPET, ups ownership to 97.55%
closed the acquisition of National Petrochemical Industrial Co. (NATPET)
after completing the share swap and cash consideration payment.
statement to Tadawul
today, Dec. 10, Alujain
said its ownership in NATPET rose to
97.55% from 88.59%.
AlJazira Capital was the financial
advisor on the acquisition, the
October, Alujain signed a share
purchase agreement with NATPET,
under which the former bought 9.59
million shares, or 8.96% of NATPET,
via a nearly 6.2 million share swap
and a cash consideration of SAR 90.3
Closing of the transaction is subject
to regulatory and other customary closing conditions. Alujain and LYB are also
assessing together potential construction of a new
propylene via propane dehydrogenation (PDH) and PP facility at the NATPET site,
subject to a final investment decision. The project is being studied with a
shared goal to implement solutions that align with the Kingdom of Saudi Arabia's
2060 carbon reduction strategy.
Alujain is a petrochemicals, energy,
mining and metals company in the Kingdom of Saudi Arabia. As majority owner of
NATPET, the company is a longtime licensee of LYB Spheripol PP
technology, one of the solutions it uses to operate a propylene and PP complex
in Yanbu Industrial City. NATPET currently has an annual PP production capacity
of approximately 400,000 tons.
"This investment in NATPET reflects
our strategy of growing and upgrading our core around assets and businesses with
lasting advantages," said LYB CEO Peter Vanacker. "We are pleased to invest in
this joint venture, which leverages LYB's technology, leading global market
positions and Alujain's proven operational excellence. We expect the joint
venture will add value both through our ownership interest, as well as marketing
of the products in key regions."
"We welcome the opportunity to deepen
our ties with LYB, first as licensee and now as joint venture partner," said
Alujain Chairman Mohammed Bin Saleh AlKhalil. "We look forward to advancing our
collective efforts to produce and market essential materials that serve our
customers' needs across the globe. This new investment is a great step forward
for developing the downstream sector in the Kingdom of Saudi Arabia, and Alujain
has plans to drive these developments further."
We are LyondellBasell (NYSE: LYB) ― a leader in the global chemical industry
creating solutions for everyday sustainable living. Through advanced technology
and focused investments, we are enabling a circular and low carbon economy.
Across all we do, we aim to unlock value for our customers, investors and
society. As one of the world's largest producers of polymers and a leader in
polyolefin technologies, we develop, manufacture and market high-quality and
innovative products for applications ranging from sustainable transportation and
food safety to clean water and quality healthcare. For more information, please
www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
About Alujain Corporation
Alujain Corporation was established in 1991 with a view to adding value to Saudi
Arabia's natural hydrocarbon and mineral resources. It is a listed Saudi joint
stock company and its head office is in Riyadh, Kingdom of Saudi Arabia.
Alujain's main strategic objectives are to identify, evaluate, promote, develop
and invest/operate major industrial projects in petrochemicals, mining, metals,
energy sectors and other projects, with a commitment to creating value for its
shareholder by utilizing local strengths and talents, capacities, wealth and
natural resources, also setting the highest standards of national, social and