LyondellBasell to move ahead on $2.4 billion Houston plant – Chron.com
The Houston petrochemical company LyondellBasell said it will move forward with its most expensive project ever, a $2.4 billion plant near the Houston Ship Channel that would become the largest factory of its kind in the world.
The project, which would create some 2,500 construction jobs and 160 permanent positions at the plant, represents a continuation of the petrochemical boom along the Gulf Coast fueled by cheap and ample natural gas liquids and supported by access to foreign markets through the growing export terminals at the Port of Houston and other Texas ports. The American Chemistry Council, a trade group, estimated the Texas Gulf Coast accounts for about $70 billion of the $185 billion in petrochemical plants completed since 2010 or planned through 2023.
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The Houston area today boasts one of the world's greatest concentrations of petrochemical plants, in many ways the result of the shale-drilling boom that produced large amounts of natural gas liquids - primarily ethane- which provide the feedstock for most modern chemicals, including plastics. The rapid growth of the sector, which created tens of thousands of construction jobs and thousands of permanent positions, helped the region weather the worst oil bust in generations and avoid the broader economic collapse that battered the area in the 1980s.
Pittsburgh-based EQT Corp. signed an all-stock deal to acquire Rice Energy for $8.2 billion, including the assumption of $1.5 billion in debt, combining two large U.S. natural gas producers. Announced: June 19, 2017.

Calgary-based Encana Corp. purchased Fort Worth-based Athlon Energy for $6.9 billion, giving the Canadian oil producer 140,000 net acres in the Midland Basin in West Texas. Announced: Sept. 29, 2014
Denver-based Whiting Petroleum snapped up Kodiak Oil & Gas Corp. in a $6 billion all-stock deal, forming the largest oil producer in North Dakota’s Bakken Shale. Announced July 13, 2014.
Exxon Mobil Corp., based in Irving, Texas, agreed to buy privately held BopCo, based in Fort Worth, with an upfront payment of $5.6 billion, doubling the oil giant’s resources in the Permian Basin in New Mexico and West Texas. Announced: Jan. 17, 2017.
Houston’s Southwestern Energy bought swaths of gas-rich land in West Virginia and Pennsylvania from Chesapeake Energy, based in Oklahoma, for $5.4 billion. The deal included 413,000 net acres in the Marcellus and Utica shale plays. Announced: Oct. 10, 2014.

Fort Worth-based Range Resources acquired Memorial Resources Development Corp. in an all-stock deal worth $4.4 billion, giving the oil company a larger footprint in the Appalachian and Gulf Coast regions. Announced: May 15, 2016.

Houston’s Noble Energy bought Rosetta Resources, also based in Houston, for $3.8 billion, including the assumption of $1.8 billion in debt, marking the company’s entrance into the Eagle Ford Shale and the Permian Basin in Texas. Announced: May 11, 2015
Houston-based Noble Energy agreed to snap up Clayton Williams Energy, based in Midland, Texas, for $3.2 billion in cash and stock, including the assumption of $500 million in debt. Announced: Jan. 16, 2017.

Los Angeles, California-based Breitburn Energy bought Houston-based QR Energy LP for $3 billion. Announced: August 24, 2014.

Austin-based Parsley Energy agreed to buy oil and gas properties in the Midland Basin in West Texas from Double Eagle Energy Permian for $2.8 billion, increasing its acreage in the Permian Basin by about a third. Announced: Feb. 7, 2017.

Tulsa-based WPX Energy acquired privately held RKI Energy for $2.8 billion, including the assumption of $400 million in debt, broadening its reach in the Permian Basin in West Texas. Announced: July 3, 2015.

A unit of Houston’s Hilcorp agreed to pay $2.7 billion for assets in the San Juan Basin in the southwestern United States from Houston-based ConocoPhillips. The deal included $2.7 billion in cash and a $300 million contingent payment. Announced: April 13, 2017.

Midland, Texas-based Diamondback Energy snapped up the assets of Brigham Resources for $2.6 billion, in a deal that included leasehold interests on more than 76,000 net acres in Pecos and Reeves counties in West Texas. Announced: Dec. 13, 2016.

Oklahoma’s American Energy Partners agreed to buy West Texas assets from Denver-based Enduring Resources for $2.55 billion, including 63,000 net acres. Announced: June 9, 2014.

Houston’s EOG Resources purchased Yates Petroleum Corp., Abo Petroleum Corp. and MYCO Industries for $2.5 billion in cash and stock, giving the producer a larger footprint in the Delaware Basin in New Mexico and Powder River Basin in Montana and Wyoming. Announced: Sept. 6, 2016.

Dallas-based RSP Permian acquired Silver Hill Energy Partners, an operator in West Texas, for $2.4 billion, giving the company acreage in the deepest part of the Delaware Basin. Announced: Oct. 13, 2016.

Houston’s Linn Energy bought gas-rich assets in the Rocky Mountains, Texas, Louisiana and several other states from Devon Energy, which is based in Oklahoma, for $2.3 billion. Announced: June 27, 2014.

Houston-based Sanchez Energy snapped up Eagle Ford Shale assets from Anadarko Petroleum, which is based in the Woodlands, for $2.3 billion, marking Anadarko’s exit from the South Texas shale play. Announced: Jan. 12, 2017.
Canonsburg, Pennsylvania-based gas producer Rice Energy bought Vantage Energy, a driller with 85,000 acres in the Marcellus Shale, for $2.1 billion. Announced: Sept. 26, 2016.

Anadarko Petroleum, based in the Woodlands, paid $2 billion for deep-water Gulf of Mexico assets from Freeport McMoRan Oil & Gas, doubling its stake in the Lucius deep-water project. Announced: Sept. 12, 2016.

Occidental Petroleum Corp., based in Houston, bought acreage in the Permian Basin from private sellers for $2 billion. Announced: Oct. 31, 2016.

Houston-based EnerVest and Denver-based FourPoint Energy paid a combined $1.9 billion for oil and gas properties and midstream assets from Houston’s Linn Energy. Announced: Oct. 3, 2014.

Oklahoma’s Devon Energy bought 80,000 acres in the Anadarko Basin in Oklahoma from Felix Energy for $1.9 billion. Announced: Dec. 6, 2015.

Gulfport Energy, based in Oklahoma City, purchased 46,000 net acres in Oklahoma’s SCOOP region for $1.8 billion. Announced: Dec. 13, 2016.

Houston-based Silver Run Acquisition Corp. snapped up an 89 percent stake in Centennial Resource Production, a driller with property in the Southern Delaware Basin. Announced: July 6, 2016.

Midland-based Concho Resources acquired 40,000 net acres in the Midland Basin for $1.6 billion from Reliance Energy. Announced: Aug. 15, 2016.

Denver-based SM Energy bought oil and gas assets in Howard and Martin counties in Texas for $1.6 billion from Qstar LLC. Announced: Oct. 17, 2016.  

PCD Energy, based in Denver, purchased two private companies backed by private equity firm Kimmeridge Energy Management Co. for $1.5 billion, giving it 57,000 net acres in West Texas. Announced: Aug. 23, 2016.

Oklahoma’s American Energy Partners snapped up 27,000 net acres and pipelines from East Resources, based in Florida, for $1.2 billion. Announced: June 9, 2014.

Alta Resources acquired gas assets in the Marcellus Shale in Pennsylvania for $1.2 billion from Anadarko Petroleum Corp., based in the Woodlands. Announced: Dec. 12, 2016.

The industry's expansion has slowed as projects have been completed, but it continues to attract investment from some of the world's biggest companies. Exxon Mobil, Chevron Phillips Chemical and Dow Chemical are building modern plastics expansions near Houston in Mont Belvieu, Old Ocean and Freeport, respectively.
LyondellBasell's latest expansion, said Bob Harvey, president and CEO of the Greater Houston Partnership, solidifies "Houston's position as a global hub of petrochemical manufacturing, leveraging Houston's strategic access to the Americas and top markets around the world."
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The new LyondellBasell plant will make propylene oxide, which is used to make bedding, carpeting, coatings, building materials and adhesives, and the by-product tertiary butyl alcohol, which is refined into an additive that makes fuels burn cleaner. The plant will have the biggest production capacity in the world for these chemicals, capable of manufacturing 1 billion pounds of propylene oxide and 2.2 billion pounds of tertiary butyl alcohol a year.
As part of the project, the company will build a plant to refine tertiary butyl alcohol into fuel additives. Construction on the project is slated to begin next year, with completion scheduled for 2021.
LyondellBasell planned this project awhile ago but stopped short of authorizing to allow other local expansions to begin first. In May, for example, LyondellBasell started construction on a $700 million plant in La Porte to churn out thinner, more durable and less environmentally harmful versions of the world's most common plastic, polyethylene. The facility should come online in 2019.
The ethane from Texas' shale gas is used to make the chemical ethylene. Ethylene is converted into pellet form and either consumed domestically or exported to Asia and Europe.
In the last few years, LyondellBasell also has completed ethylene expansions at its Channelview, La Porte and Corpus Christi sites, as well as a plastics expansion in Matagorda.

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