LyondellBasell Looks to Brighter Petrochemicals Market in 2026

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

LyondellBasell is optimistic about 2026, following a rough 2025 that saw prices and margins weakened by unfavorable market factors. The company has several major expansion projects planned for its production facilities.

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A Bad Year for the Sector

Petrochemicals titan LyondellBasell Industries NV emerged from a difficult 2025 with high hopes for the coming year. Several expansions are planned in the production of propylene, polybutadiene and other chemicals. Industrial Info is tracking about $2.9 billion worth of active and proposed projects from LyondellBasell, more than 85% of which is attributed to projects in North America.

"2025 was another exceptionally challenging year, with industry margins remaining deeply depressed across all of our core businesses," said Peter Vanacker, the chief executive officer of LyondellBasell, in last week's quarterly earnings-related conference call. "Industry margins were approximately 45% below historical averages, even worse than the already-difficult conditions we saw in 2024. In North America, polyolefins margins reached their lowest levels in more than a decade. This margin erosion has weighed heavily on LyondellBasell and the entire sector."

LyondellBasell executives pointed to a host of factors pressuring margins, including global trade disruptions, low demand for durable goods, a lower oil-to-gas ratio, increased competition from imports, and structurally higher energy costs. Ethylene margins weakened, as ethane and natural gas prices increased while ethylene and propylene prices dropped.

Despite these challenges, LyondellBasell started construction on a major project in the fourth quarter: a second unit at its olefins complex in Channelview, Texas, where the company aims to convert ethylene into roughly 882 million pounds per year of propylene. The product will be used to produce polypropylene and propylene oxide, which are key components of household and other commonplace chemicals.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Plant and Project databases can learn more about the Channelview development--including capacities, investment values and necessary equipment--from a plant profile and a detailed project report.

LyondellBasell also is considering a further expansion at its Channelview site with a proposed debottlenecking of its polybutadiene unit, which is designed to boost capacity by a yet-unspecified amount. Subscribers can learn more from a detailed project report.

After polypropylene producers struggled with subdued demand and weak margins in the fourth quarter, LyondellBasell executives expect stronger seasonal demand and a reduced supply--both influenced by Winter Storm Fern--will give prices a much-needed boost. Industrial Info is tracking more than $7.8 billion worth of active and proposed polypropylene-production projects across the U.S.; subscribers can learn more from a detailed list of project reports.

By the Numbers

• About $2.9 billion: Total investment value of LyondellBasell projects worldwide tracked by Industrial Info
• 882 million pounds: Annual production of propylene expected from LyondellBasell's unit addition at Channelview
• More than $7.8 billion: Total investment value of polypropylene-production projects across the U.S. tracked by Industrial Info

Positive Trends on the Horizon

Acetic acid, another product derived from ethylene, also is set for a production boost from LyondellBasell's unit addition at its complex in La Porte, Texas. The new unit will produce glacial acetic acid, an anhydrous component used as a solvent in paints, adhesives and coatings. Subscribers can learn more from a plant profile and detailed project report.

"As we began the first quarter, we expect to see positive trends in our [Performance Olefins & Derivatives] business, with additional glycol sales into the DIC market and capacity rationalizations in both Europe and the U.S., improving LyondellBasell's market share," said Kimberley Foley, the Executive Vice President of Global Olefins and Polyolefins for LyondellBasell, in the earnings call.

LyondellBasell reported a net loss of $140 million for fourth-quarter 2025, compared with a net loss of $603 million in the same period last year. For full-year 2025, the company saw a net loss of $738 million, compared with a net gain of $1.37 billion for 2024.

Total sales stood at $7.09 billion for fourth-quarter 2025, compared with $7.8 billion in fourth-quarter 2024. For full-year 2025, the company saw total sales of $30.15 billion, a 9.7% decrease from 2024.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for active and proposed projects from LyondellBasell.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• LyondellBasell emerged from a challenging 2025 with stronger expectations for the coming year.
• Polypropylene prices are expected to get a much-needed boost from stronger seasonal demand and lower inventories.
• A major addition at its Channelview site would convert ethylene into roughly 882 million pounds per year of propylene.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).