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Released August 08, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--LyondellBasell Industries (NYSE:LYB) (Houston, Texas) expects to ramp up capital expenditures for the remainder of this year as it pushes ahead with key polyethylene and propylene oxide/tertiary butyl alcohol (PO/TBA) plant projects in Texas, company executives said last week. Industrial Info is tracking $8 billion worth of active LyondellBasell capital projects in the U.S., including the two Texas items.
"Over the remainder of 2018, we expect to increase our capital investment for growth, as we complete the Hyperzone polyethylene plant and ramp up activity for construction of the world's largest propylene oxide and tertiary butyl alcohol plant," Chief Executive Officer Bob Patel told investment analysts during the company's August 3 earnings conference call for the just-ended second quarter. "Our forecast for capital expenditure during 2018 remains at approximately $2.4 billion, with approximately $1.1 billion allocated to maintenance that supports our high operational reliability."
Located at LyondellBasell's La Porte complex, the 1.1 billion-pound-per-year polyethylene plant addition is expected to be completed in the third quarter of 2019. Performance Contractors Incorporated (Baton Rouge, Louisiana) and ISC Constructors, LLC (Baton Rouge) are working on the project. For more information, see Industrial Info's project report. For related information, see May 17, 2018, article - Performance Contractors at Work on $7.8 Billion in Chemical Projects, Focused on Gulf Coast and May 18, 2017, article - In Bustling La Porte, Texas, LyondellBasell Breaks Ground on Polyethylene Plant.
"The wave of new polyethylene capacity additions is being absorbed by robust demand in polyethylene markets," Patel said in the company's earnings press release. "In North America, the majority of the plants planned over the period of 2016-2019 have started, with approximately 65% of both the ethylene and polyethylene capacity appearing in the market."
The company also continues work on its PO/TBA unit addition at its Channelview site, with plans to complete the project in early 2021. The addition will produce 1 billion pounds per year of propylene oxide and about 2.2 billion pounds per year of tertiary butyl alcohol. Patel said the project is "the largest capital investment this company, or its predecessors, have undertaken. So, focus on execution is also really important." For more information, see Industrial Info's project report.
LyondellBasell continues to study the feasibility of building a propane dehydrogenation (PDH) plant and an accompanying polypropylene plant in Channelview. Patel said the company is "still working through the details and sort of the engineering of that. I want to make sure my team provides a very good estimate on capital so that we can make a good decision and with an eye towards creating shareholder value."
The U.S. polypropylene market remains very tight, Patel said, adding: "Imports have increased because of just more demand in the U.S. that has to be met. And I suspect that whenever new units come on down the road then some of those imports will decline."
For more information, see Industrial Info's project reports on the PDH plant and polypropylene plant.
LyondellBasell is negotiating on a potential merger with or acquisition of Brazilian polypropylene producer Braskem. Patel would not discuss the details of the talks, but added such a deal would give LyondellBasell "a presence in Latin America that we don't have today."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
"Over the remainder of 2018, we expect to increase our capital investment for growth, as we complete the Hyperzone polyethylene plant and ramp up activity for construction of the world's largest propylene oxide and tertiary butyl alcohol plant," Chief Executive Officer Bob Patel told investment analysts during the company's August 3 earnings conference call for the just-ended second quarter. "Our forecast for capital expenditure during 2018 remains at approximately $2.4 billion, with approximately $1.1 billion allocated to maintenance that supports our high operational reliability."
Located at LyondellBasell's La Porte complex, the 1.1 billion-pound-per-year polyethylene plant addition is expected to be completed in the third quarter of 2019. Performance Contractors Incorporated (Baton Rouge, Louisiana) and ISC Constructors, LLC (Baton Rouge) are working on the project. For more information, see Industrial Info's project report. For related information, see May 17, 2018, article - Performance Contractors at Work on $7.8 Billion in Chemical Projects, Focused on Gulf Coast and May 18, 2017, article - In Bustling La Porte, Texas, LyondellBasell Breaks Ground on Polyethylene Plant.
"The wave of new polyethylene capacity additions is being absorbed by robust demand in polyethylene markets," Patel said in the company's earnings press release. "In North America, the majority of the plants planned over the period of 2016-2019 have started, with approximately 65% of both the ethylene and polyethylene capacity appearing in the market."
The company also continues work on its PO/TBA unit addition at its Channelview site, with plans to complete the project in early 2021. The addition will produce 1 billion pounds per year of propylene oxide and about 2.2 billion pounds per year of tertiary butyl alcohol. Patel said the project is "the largest capital investment this company, or its predecessors, have undertaken. So, focus on execution is also really important." For more information, see Industrial Info's project report.
LyondellBasell continues to study the feasibility of building a propane dehydrogenation (PDH) plant and an accompanying polypropylene plant in Channelview. Patel said the company is "still working through the details and sort of the engineering of that. I want to make sure my team provides a very good estimate on capital so that we can make a good decision and with an eye towards creating shareholder value."
The U.S. polypropylene market remains very tight, Patel said, adding: "Imports have increased because of just more demand in the U.S. that has to be met. And I suspect that whenever new units come on down the road then some of those imports will decline."
For more information, see Industrial Info's project reports on the PDH plant and polypropylene plant.
LyondellBasell is negotiating on a potential merger with or acquisition of Brazilian polypropylene producer Braskem. Patel would not discuss the details of the talks, but added such a deal would give LyondellBasell "a presence in Latin America that we don't have today."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
