LyondellBasell Mulls Strategic Options for Gulf Coast Ethylene Oxide & Derivatives Business

Researched by Industrial Info Resources (Sugar Land, Texas)--LyondellBasell Industries NV (NYSE:LYB) (Rotterdam, Netherlands) said last week it will explore strategic options for its U.S. Gulf Coast-based ethylene oxide & derivatives (EO&D) business.

"While the EO&D business provides positive cash generation, it is not a business where the company seeks a leading long-term position," LyondellBasell said in a press release centering on its company strategy. "This decision is another example of how the company's new strategy has a laser focus on its core businesses."

Industrial Info's Global Market Intelligence (GMI) Chemical Processing Plant Database includes LyondellBasell's Bayport Ethylene Oxide BCO plant in Pasadena, Texas. Subscribers can click here for the plant profile.

In the same press release, LyondellBasell noted, "While LyondellBasell intends to cease refining operations at its Houston Refinery, the company is evaluating future investments at the site. LyondellBasell is analyzing the potential to retrofit the refinery to build up its CLCS (Circular & Low Carbon Solutions) business, which will also keep jobs in the region and align with the company's strategy to leverage existing assets that are strategically located within the LyondellBasell portfolio."

LyondellBasell said it expects its CLCS business to grow to at least $1 billion in incremental earnings before interest, taxes, depreciation and amortization by 2030.

During the company's Capital Markets Day investor presentation on March 14, LyondellBasell executives also voiced the possibility of developing a hydrogen hub at the Houston Refinery. For more information, see March 20, 2023, article - LyondellBasell's Houston Refinery Could Become Home to Hydrogen Hub.

Also, the company said it had started up what it touted as 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 470,000 tons of PO and 1 million metric tons of TBA and its derivatives," the company said in a press release.

Subscribers can click here for the PO/TBA project report.

The 140-acre PO/TBA plant was built at LyondellBasell's Channelview Complex in Pasadena, while an associated 34-acre ethers unit, which will convert TBA to oxyfuels, was built at the Bayport Complex. Subscribers can click here for the ethers unit project report.

Subscribers can click here for all project reports referenced in this article and click here for the plant profiles.

Industrial Info Resources (IIR) 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 200,000 current and future projects worth $17.8 Trillion (USD).