LyondellBasell Building $2.4B Chemical Plant in Texas

Chemicals and plastics maker LyondellBasell held a ground breaking ceremony on Wednesday to mark the beginning of construction on a new $2.4 billion chemical production facility, a press release announced. The company said that the facility will be the biggest production site for propylene oxide (PO) and tertiary butyl alcohol (TBA) in the world when the plant becomes operational in 2021. 

“This plant will be the largest of its kind, built to meet the rising global demand for urethanes used by billions of consumers each day and clean-burning oxyfuels that will help improve air quality around the world,” said the firm’s chief executive officer, Bob Patel, in a statement. 

The 140-acre PO/TBA plant will be located in LyondellBasell’s Channelview Complex in Channelview, TX. Additionally, the company plans to erect a 34-acre ethers unit to process TBA into oxyfuels at its Bayport Complex in Pasadena, TX. About 160 new permanent jobs will be created as a result of the project. 

“These $2.4 billion facilities are not only an expansion of LyondellBasell, but an investment in the future of our communities along the Texas Gulf Coast,” U.S. Rep. Brian Babin of Texas said in the firm’s release. “The several billion pounds of PO and TBA products that will be produced will make way for more local jobs, economic growth, and regional expansion over the coming decade and beyond.” 

1 billion pounds of PO and 2.2 billion pounds of TBA will be produced annually at the Channelview plant, according to information on the company’s website. 

LyondellBasell selected the locations in the U.S. Gulf Coast because of the region’s access to low-cost feedstocks and its transportation-related infrastructure. PO and TBA produced at the Channelview facility will be sold domestically and exported. Most of the oxyfuels manufactured in Pasadena will be sold to customers in Latin America and Asia.

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