Expansions: LyondellBasell PO tech selected for China Coal Shaanxi complex; LyondellBasell to acquire Saudi petchem jv for US$500 mn with expansion for new PDH/PP complex

LyondellBasell, the world’s largest licensor of polyolefin technologies, has announced that China Coal Shaanxi Yulin Energy & Chemical Co Ltd will use the LyondellBasell Spherizone, Hostalen Advanced Cascade Process (Hostalen ACP) and Lupotech T technology for its new facility.

The process technology will be used for a 300 kilotonnes/year Spherizone polypropylene plant, a 300 kilotonnes/year Hostalen ACP high-density polyethylene plant and a 250 kilotonnes/year Lupotech T vinyl acetate copolymer plant, to be built in Yulin City, Shaanxi Province, China.

“This licensing agreement underlines the need to license outperforming and differentiated technology in an increasingly competitive producer landscape,” said Patrik Schneider, Director of Licensing at LyondellBasell. Schneider added: “The technology selection of China Coal Shaanxi  supports their ambitious growth targets for both expanding production and for delivering differentiated resins to the polyolefin market in China and beyond.”

Zhou Yongtao, Vice General Manager and Chief Project Director of China Coal Shaanxi said, “Being able to obtain a license and related know how and decades of operating experience is a great asset for us as this accelerates learning and decreases complexity. Specifically the differentiated polypropylene grades from the Spherizone process as well as the durable infrastructure resins from Hostalen ACP and Lupotech T are key for our portfolio development.”

Meanwhile, LyondellBasell has announced it entered into an agreement to acquire a 35% interest in Saudi Arabia–based National Petrochemical Industrial Company (NATPET) from Alujain Corporation (Alujain) for approximately US$500 million. Enabled by its Spheripol PP technology, the joint venture positions LyondellBasell to grow and upgrade its core PP business through access to advantaged feedstocks, plus additional product marketing capacity, in a strategic region.

Closing of the transaction is subject to regulatory and other customary closing conditions. Alujain and LYB are also assessing together potential construction of a new propylene via propane dehydrogenation (PDH) and PP facility at the NATPET site, subject to a final investment decision. The project is being studied with a shared goal to implement solutions that align with Saudi Arabia's 2060 carbon reduction strategy. 

Alujain is a petrochemicals, energy, mining and metals company in Saudi Arabia. As majority owner of NATPET, the company is a longtime licensee of Spheripol PP technology, one of the solutions it uses to operate a propylene and PP complex in Yanbu Industrial City. NATPET currently has an annual PP production capacity of approximately 400,000 tonnes.

(PRA)

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