LyondellBasell progresses on $2.4-billion Gulf Coast PO-TBA plant

LyondellBasell Industries NV has surpassed 20% completion what it is calling the world’s largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant at the company’s Houston-area complex in Channelview, Tex. (OGJ Online, Sept. 3, 2018; June 3, 2016).

Following the recent delivery of a 25-story-tall, 601-tonne distillation tower—which will be the tallest piece of equipment to be installed—work on the project is now shifting from foundation and infrastructure construction to vertical assembly, LyondellBasell said on Nov. 11.

The first pieces of structural steel are being safely installed at both construction sites, and installation of tanks, cooling towers and the flare will begin soon at the Channelview site.

“We’ve moved another step closer to delivering our PO-TBA project, with construction taking place simultaneously at two of our sites,” said Dan Coombs, LyondellBasell executive vice-president for global manufacturing, projects, and refining.

The project remains on schedule for start-up in 2021, Coombs confirmed.

Once in operation, the 140-acre PO-TBA plant will produce 1 billion lb/year of PO and 2.2 billion lb/year of TBA, the latter of which will move to an associated 34-acre ethers unit to be built at the company’s Bayport complex near Pasadena, Tex., for conversion into high-octane gasoline components methyl tertiary butyl ether and ethyl tertiary butyl ether.

LyondellBasell plans to sell PO and derivative products from the new Channelview plant to both domestic and global customers, while MTBE and ETBE oxyfuels from the associated Bayport unit will be primarily sold to buyers in Latin America and Asia.

A portion of TBA production, however, will remain in the US market as high-purity isobutylene for use in tires and lubricants, the company said.

Most production from the dual-location project will be exported via the Houston Ship Channel.

Based on an analysis by the Greater Houston Partnership, LyondellBasell said it expects the $2.4 billion PO-TBA project to generate more than $450 million in tax benefits for the county, school district, community college, and other local taxing districts over a 10-year period. The total project will create more than 2,200 construction jobs at the peak of construction and 160 permanent positions.

Contact Robert Brelsford at [email protected].