Houston, Texas – LyondellBasell is to build what it claims will be the world’s largest propylene oxide and tertiary butyl alcohol plant in the Houston area. With an estimated budget of $2.4 billion, the company says it will be the its largest ever capital investment.
Once complete, it will employ about 160 people. During construction, slated to begin in the second half of 2018, it is expected that about 2500 jobs will be created.
The proposed location is within the LyondellBasell plant in Channelview, Texas. The final choice of site is contingent upon final approval of economic incentives by the state of Texas.
‘This world-scale project is a key part of our organic growth strategy which is designed to meet rising global demand for both urethanes and cleaner-burning oxyfuels while creating real, long-term value for our shareholders,’ said Bob Patel, CEO of LyondellBasell.
He added that the investment in the plant will combine the ‘best of both worlds’, with its process technology for making the two chemicals, plus the proximity to low-cost feedstocks.
The completed plant is expected to produce 470 kT/year of propylene oxide and 1 MT/year of t-butyl alcohol a year. The PO and its derivatives, including polyols for the polyurethane market, will be sold both in the US and overseas. Much of the TBA will be converted to oxyfuels in Bayport, Texas for the Latin American and Asian markets, but some will remain in the US for conversion into isobutylene for tyres and lubricants.