LyondellBasell Industries Holdings B.V., based in Rotterdam, the Netherlands, officially broke ground and will build the world's largest propylene oxide (PO) and tert-butanol (TBA) plants.
The Houston area project plans to cost $ 2.4 billion, making it the largest single capital investment in the company's history. Once operational, the plant will produce 470,000 metric tons of PO and 1 million metric tons of TBA annually. The plant is scheduled to start in 2021.
"Today's groundbreaking is a historic moment for our company," said Bob Patel, CEO of LyondellBasell. "The plant will be the largest of its kind, designed to meet the growing demand for polyurethanes from billions of consumers worldwide, as well as clean burning oxygen fuels that will help improve global air quality. At the same time, the project is being constructed Many jobs will be provided to support local businesses and strengthen our company by increasing taxes in the Houston area. As one of the cornerstones of our company's global growth strategy, the new plant will strengthen our ties in Houston and create long-term value for shareholders. "
To optimize product balance and achieve synergy between LyondellBasell sites, two facilities will be built on existing production sites. The 140-acre PO / TBA plant will be built in the LyondellBasell Channelview complex in Channelview, Texas, USA, and a 34-acre ether plant will be constructed at the Bayport Complex in Pasadena. Convert TBA to oxyfuel.
The company chose to build new plants at these existing locations along the Texas Gulf Coast, primarily because they are close to low-cost raw materials and have the transportation infrastructure needed to ship products to global markets.
Based on an analysis of the Houston area partnership, LyondellBasell's PO / TBA project is expected to bring in more than $ 453 million in taxes to counties, school districts, community colleges, and other local tax districts within 10 years. The Channelview website is expected to provide $ 349 million in taxes, while the Pasadena website is expected to generate $ 104 million in taxes.
The project will provide more than 2,200 construction jobs in 160 permanent positions.
Designed to meet global needs
PO is used to make bedding, furniture, carpets, coatings, building materials and adhesives, while TBA will be converted into two ether-based oxygen fuels, methyl tert-butyl ether (MTBE) and ethyl tert-butyl ether (ETBE) ). MTBE and ETBE are both high-octane gasoline components that help gasoline burn cleanly and reduce vehicle emissions.
Global demand for polyurethanes is expected to increase by 4% to 5% in the next five years as emerging economies in Asia and India increase their demand for consumer products. The global TBA market is expected to grow at a rate of 3% per year between 2018 and 2028, as drivers and governments in Asia Pacific and Latin America are seeking to improve air quality through the use of clean burning gasoline.
LyondellBasell plans to sell PO and derivative products to domestic and international customers, while oxyfuel will be sold mainly to Latin America and Asia. Part of the TBA will remain in the domestic market in the form of high-purity isobutylene for tires and lubricants. Most products will be exported through the Houston Ship Channel.