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Researched by Industrial Info Resources (Sugar Land, Texas)--Capital expenditures (capex) by chemicals producer and oil refiner LyondellBasell Industries (NYSE:LYB) (Rotterdam, Netherlands) totaled $338 million in the third quarter, down by $85 million from similar expenditures a year earlier, according to company earnings results. Capital expenditures included growth projects, maintenance turnarounds catalyst and information technology-related expenses. The company reported third-quarter net income of $1.26 billion, up 47% from third-quarter 2013. Sales and other operating revenues totaled $12 billion, up 8.2%.
Industrial Info is tracking 56 LyondellBasell projects, with a combined value of $3.29 billion.
Chief Executive Officer Jim Gallogly, who plans to retire early next year, outlined recently completed, ongoing and planned projects during the company's earnings conference call with investment analysts.
A longer-than-anticipated ethylene plant turnaround and mechanical problems at the company's La Porte site in Texas impacted third-quarter ethylene sales by 100 million pounds, Gallogly said. The outage, which started in the second quarter, lasted for 115 days. Following its restart in July, the La Porte facility ran at 106% capacity for the rest of the quarter, he said, and five other LyondellBasell facilities ran at 96% capacity.
For related information, see July 29, 2014, article - U.S. Ethylene Producers See Costly Outages in Second-Quarter 2014
Late in September, the company started up new ethylene furnaces at the La Porte complex, increasing LyondellBasell's total ethylene capacity 8%, Gallogly said. The increase is the first in a series of expansions that would add nearly 2.5 billion pounds to the company's annual capacity, he said, adding that the amount is equivalent to a new olefins plant. Most of the new capacity will be brought online about two years ahead of greenfield projects by competing producers, at a fraction of the cost, he said.
For related information, see October 2, 2014, article - First in Series of LyondellBasell Ethylene Capacity Expansions Brought Online in Texas.
View Project Report - 300040580 300138981 300096974 300126731 300141055
Also during the third quarter, LyondellBasell's methanol assets ran at only 74% capacity as a result of production issues, Gallogly said. The company's methanol plant in Channelview, Texas, will undergo scheduled maintenance work in the first quarter of 2015, he added.
View Plant Profile - 1013498
In the fourth quarter, Gallogly said he anticipates the company's Houston refinery will begin receiving shipments of Canadian crude oil via the recently-completed Flanagan South pipeline. The refinery processed 264,000 barrels of oil per day in the third quarter, he said.
View Plant Profile - 1000066
View Project Report - 300051590
Looking ahead, Gallogly noted LyondellBasell's plans to build a world-scale propylene oxide facility/tertiary butyl ether plant on the U.S. Gulf Coast. With an annual capacity of 900 million pounds of propylene oxide, the facility would boost the company's capacity by 35%, Gallogly said. The project has a total investment value of $1 billion, according Industrial Info, and could be operational in 2019. The company has not yet announced a specific site for the project.
View Project Report - 300179242
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
Industrial Info is tracking 56 LyondellBasell projects, with a combined value of $3.29 billion.
Chief Executive Officer Jim Gallogly, who plans to retire early next year, outlined recently completed, ongoing and planned projects during the company's earnings conference call with investment analysts.
A longer-than-anticipated ethylene plant turnaround and mechanical problems at the company's La Porte site in Texas impacted third-quarter ethylene sales by 100 million pounds, Gallogly said. The outage, which started in the second quarter, lasted for 115 days. Following its restart in July, the La Porte facility ran at 106% capacity for the rest of the quarter, he said, and five other LyondellBasell facilities ran at 96% capacity.
For related information, see July 29, 2014, article - U.S. Ethylene Producers See Costly Outages in Second-Quarter 2014
Late in September, the company started up new ethylene furnaces at the La Porte complex, increasing LyondellBasell's total ethylene capacity 8%, Gallogly said. The increase is the first in a series of expansions that would add nearly 2.5 billion pounds to the company's annual capacity, he said, adding that the amount is equivalent to a new olefins plant. Most of the new capacity will be brought online about two years ahead of greenfield projects by competing producers, at a fraction of the cost, he said.
For related information, see October 2, 2014, article - First in Series of LyondellBasell Ethylene Capacity Expansions Brought Online in Texas.
View Project Report - 300040580 300138981 300096974 300126731 300141055
Also during the third quarter, LyondellBasell's methanol assets ran at only 74% capacity as a result of production issues, Gallogly said. The company's methanol plant in Channelview, Texas, will undergo scheduled maintenance work in the first quarter of 2015, he added.
View Plant Profile - 1013498
In the fourth quarter, Gallogly said he anticipates the company's Houston refinery will begin receiving shipments of Canadian crude oil via the recently-completed Flanagan South pipeline. The refinery processed 264,000 barrels of oil per day in the third quarter, he said.
View Plant Profile - 1000066
View Project Report - 300051590
Looking ahead, Gallogly noted LyondellBasell's plans to build a world-scale propylene oxide facility/tertiary butyl ether plant on the U.S. Gulf Coast. With an annual capacity of 900 million pounds of propylene oxide, the facility would boost the company's capacity by 35%, Gallogly said. The project has a total investment value of $1 billion, according Industrial Info, and could be operational in 2019. The company has not yet announced a specific site for the project.
View Project Report - 300179242
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
