LyondellBasell Plans World’s Largest Chemical Plant Near Houston

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On Thursday, LyondellBasell Industries announced its plans to build a new plant at its Channelview complex, near Houston.

Considered to be the largest of its kind in the world, the new chemical plant is expected to create up to 2,500 construction jobs and 100 permanent positions said LyondellBasell. It would also be the company’s largest capital investment ever.

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The Channelview chemical plant would be one of many projects for LyondellBasell. The petrochemical giant anticipates spending up to $4 billion in capital along the Gulf Coast, mostly in Texas, including ethylene expansion projects at its LaPorte and Corpus Christi sites.
This comes as a result of the Gulf Coast’s petroleum boom. Companies take advantage of cheap natural gas used as a feedstock for manufacturing chemicals and plastics.

“We continue to believe that the combination of low-cost natural gas liquids available on the U.S. Gulf Coast, along with our leading proprietary PO/TBA technology, will allow this proposal project to capture maximum advantage of market opportunities,” said CEO Bob Patel.

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The new plant is expected to produce 1 billion pounds of propylene oxide and 2 billion pounds of tertiary butyl alcohol annually. Propylene oxide is a chemical used to make a variety of products from antifreeze to cosmetics. Tertiary butyl alcohol is a byproduct used to make chemicals and gasoline additives.

LyondellBasell will not make a final decision on starting construction until after the front-end engineering work is finished next year. The plant is expected to be operational in 2020.

Article written by HEI contributor Shon Mattox.

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