U.S. Petrochemical Producers Plot Turnarounds Amid Weak Prices

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

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Summary

Following a bad year for petrochemical prices, U.S. producers like BASF, LyondellBasell, Chevron and Enterprise are preparing for turnarounds on some of the highest-capacity units.

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Ethylene Leads the Way

The U.S. petrochemical sector endured a rough 2025, with prices pushed downward by weak demand, oversupply, lower energy costs and persistent trade uncertainty. Producers aim to keep their existing units in the best shape in the current market. Industrial Info is tracking more than $480 million worth of maintenance-related projects at chemical-processing plants across the U.S. that are set to begin in the first quarter, with the heaviest investments from companies such as BASF SE (Ludwigshafen, Germany), LyondellBasell Industries (Rotterdam, Netherlands) and Chevron Phillips Chemical Company LP (Houston, Texas).

BASF alone accounts for more than 25% of the total investment in first-quarter maintenance, with activity centered around its petrochemicals plant in Port Arthur, Texas. BASF is performing routine inspections and repairs to its C-4 production area, which produces butadiene, benzene, toluene, and OCU propylene; its 2.3 billion-pound-per-year ethylene unit, which is one of the largest in the world; and its pyrolysis gasoline unit, also called "pygas."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more about BASF's Port Arthur projects--including capacities, investment values and necessary equipment--from a plant profile and detailed reports on the C-4 production, ethylene and pygas projects.

Despite strong sales volumes in BASF's most recently completed quarter, company executives have acknowledged weakening prices proved a challenge in 2025. "Price declines owing to global excess capacities and lower feedstock prices adversely impacted sales in both divisions," BASF said in its most recent earnings-related press release. "The Petrochemicals division recorded sharply lower prices, especially for cracker products and in the propylene value chain."

As demand for ethylene rises both domestically and globally, other chemical producers are sprucing up their production units. Altogether, ethylene units account for $130 million of the more than $480 million in maintenance-related kickoffs at U.S. petrochemical plants in the first quarter.

Chevron Phillips Chemical Company, a 50:50 joint venture between Chevron Corporation (Houston) and Phillips 66 (Houston), is preparing to begin work on Ethylene Unit 22 at its Old Ocean plant in Sweeny, Texas, while LyondellBasell expects to start a turnaround on a single-train ethylene unit at its plant in Clinton, Iowa. Both turnarounds are expected to run into the second quarter.

Subscribers can read detailed reports on the Sweeny and Clinton projects.

By the Numbers

• More than $480 million: Value of maintenance projects at U.S. chemical plants set to begin in the first quarter
• More than 25%: How much of this total investment is attributed to BASF
• $130 million: Value of maintenance projects at U.S. ethylene units set to begin in the first quarter

Propane Under Pressure

Enterprise Products Partners LP (Houston) and Koch Industries Incorporated (Wichita, Kansas) are tending to their propane units.

At its fractionation complex in Mont Belvieu, Texas, Enterprise is preparing for a turnaround on its propane dehydrogenation unit, which produces 1.65 billion pounds per year of propylene. INVISTA Incorporated, a Koch subsidiary, is readying for maintenance on its propylene unit in Houston, which produces 1.54 billion pounds per year.

Subscribers can read detailed reports on the Mont Belvieu and Houston projects.

Like the rest of the petrochemicals sector, the U.S. propane market is facing price-related challenges: Domestic inventories were hitting record levels in late 2025, driven by strong supply and slower-than-expected winter demand.

Nonetheless, in Enterprise's most recent earnings-related conference call, executives expressed optimism about the propane market and its potential for "contango," which is when the futures price of an asset trades above its expected future spot price.

"We've got a lot of storage," said Justin Kleiderer, the senior vice president for Pipelines & Terminals at Enterprise, in the earnings call. "We've got the biggest storage position in the world. So propane goes contango, it will be beneficial for Enterprise."

Subscribers to Industrial Info's GMI Project and Plant databases 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.

Subscribers can click here for a full list of reports for maintenance-related projects at chemical-processing plants across the U.S. that are set to begin in the first quarter.

Key Takeaways

• BASF, LyondellBasell and Chevron Phillips Chemical are preparing for turnarounds on major ethylene units.
• Prices in the U.S. petrochemical sector faced downward pressure for much of 2025.
• Enterprise is confident its storage position will help it navigate a rough pricing outlook for propane.

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About Industrial Info Resources
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).