LyondellBasell likely to raise US ethylene capacity, may build new cracker - CEO
Global petrochemicals major LyondellBasell is likely to raise its ethylene capacity at two US sites and is considering building a new cracker, CEO Jim Gallogly said on Monday.
Speaking on an earnings conference call, the chief executive said LyondellBasell could debottleneck its plants in Channelview and La Porte, Texas, raising ethylene output by about 500mn pounds/year.
The debottlenecking projects remain in the early engineering stages, he said.
Meanwhile, the company is also considering the construction of a new cracker as part of a joint venture with other producers, Gallogly said. That project remains in the study phase, he noted.
US producers are increasingly considering new projects due to the increase in shale gas plays, which has increased the supply and cost benefits of natural gas liquids (NGL) feedstocks.
Last month, Dow Chemical announced a similar plan to build a new cracker by 2017. And in March, Chevron Phillips Chemical said it was considering building an ethane cracker in the US.
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