Sector News

LyondellBasell JV starts up $2.6-billion petchem complex in China

September 1, 2020
Chemical Value Chain

LyondellBasell and Liaoning Bora Enterprise Group have commenced operations at their 1.1-million metric tons/year ethylene plant and associated polyolefins complex at Panjin in Liaoning Province, northeastern China.

The cost of the project is approximately $2.6 billion.
The two companies in September 2019 established a 50/50 joint venture (JV), Bora LyondellBasell Petrochemical Co., for the project.
The ethylene plant has the flexibility to consume naphtha and liquefied petroleum gas. The downstream complex includes units producing 800,000 metric tons/year of polyethylene (PE) and 600,000 metric tons/year of polypropylene (PP) using LyondellBasell’s Hostalen ACP PE technology and the company’s Spheripol and Spherizone PP processes.
The complex will supply the packaging, transportation, building and construction, and healthcare and hygiene industries. The materials produced at the facility will be sold for use within China.
The two companies are planning medium-to-long-term collaboration on additional petchem projects that could be deployed in multiple phases over the next 10 years.
“The northeast is on the forefront of China’s next round of regional revitalization. It is an attractive destination for investment, with abundant natural resources, upgraded infrastructure, and improving business environment, supported by the government’s long-term development vision,” says Qu Baoxue, the controlling shareholder of Bora.

Demand for polyolefins “has returned in China after the pandemic-related economic slowdown earlier in the year, and the long-term growth trends are very favorable for this project,” says Bob Patel, CEO of LyondellBasell. “We look forward to potential future opportunities that would allow us to expand our local manufacturing footprint.”

The Bora LyondellBasell Petrochemical ethylene plant is one of four steam crackers scheduled to start up in China by the end of this year.

According to IHS Markit, Asia is the largest and fastest-growing polyolefins market in the world. China accounts for more than 60% of the Asian polyolefins market and represents 40% of worldwide polyolefins growth.

By: Kartik Kohli

Source: Chemical Week

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