Capital Approval Granted For OxyChem's $45 Million Cogen Addition

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Occidental Chemical Corporation (OxyChem) (Dallas, Texas), a subsidiary of Occidental Petroleum Corporation (NYSE: OXY) (Los Angeles, California), received capital approval in February for a new General Electric 70 megawatt (MW) cogen unit addition for it's Battleground La Porte, Texas plant (Plant 1518030). This will be the third 70 MW cogen for this chemical complex and will be used to supply additional power to chemical plants and also for other major companies on the power grid (PEC 01008347). Industrialinfo.com originally reported this project in March of 2001 as part of the North American Projects Database.

Black & Veatch (Kansas City, Missouri) has been awarded the engineering and construction contract for the estimated $45 million project and should begin civil construction and underground piping work in April with mechanical and electrical installation commencing this summer. A turbine and transformer will be relocated from the Deerpark, Texas plant, but the rest of the equipment including the General Electric cogen unit will be a new investment. They should have the new unit up and online producing power by mid 2005.

OxyChem is headquartered in Dallas,Texas and is a primary producer of caustic soda and chlorine. They have 28 plants mainly in the United States and are one of the top chemical manufacturers in the United States focusing on vinyls and basic and performance chemicals. Oxychem has an alliance with Oxyvinyls, and is one of the world's largest producers of polyvinyl chloride (PVC), which is used to make products such as PVC piping, food wrap, credit cards, doors and windows.

OxyChem's ultimate owner, Occidental Petroleum Corporation is one of the largest independent oil and natural gas production companies in the world starting operations in 1920 and entering the chemical industry in 1968.