Shell Chemical Co., BASF Corp., and the Fina Inc. unit of TotalFina SA have signed a letter of intent to form a joint venture to build the world`s largest butadiene plant at Port Arthur, Tex.
Slated for start up by 2002, the plant will have a production capacity of 900 million lb/year. It will be located next to the Fina refinery and the olefins steam cracker complex being constructed in Port Arthur by BASF and Fina (OGJ, Mar. 29, 1999, p. 50).
Most of the plant`s feedstock will come from the Shell olefins complex at Deer Park, Tex., as well as the BASF-Fina steam cracker, which will start up in early 2001.
The plant will supply butadiene mainly to downstream facilities in the East Texas area of Beaumont, Port Arthur, and Orange, where demand for butadiene is growing.
JV interests will be Shell, 60%; BASF, 24%; and Fina, 16%.
Plans call for developing a butadiene distribution system in the area to expedite customer supply and for securing pipeline connections between the new plant and Deer Park to transport butadiene and butadiene feedstock.
Current plans are for BASF to operate the butadiene plant, which the JV partners contend will provide economies of scale based on its unprecedented size. The proximity of Fina`s Port Arthur refinery, the BASF-Fina steam cracker, and the area`s butadiene market will provide synergies for the plant`s operations and logistics.
A definitive agreement is targeted for early 2000, pending management, government, and regulatory approvals. Construction will begin shortly thereafter and will require a peak construction work force of about 400 people.
