Skip to comments.LyondellBasell restarts Texas plant amid cheap natural gas
Posted on 01/02/2014 10:40:22 AM PST by thackney
LyondellBasell has restarted a Gulf Coast chemical plant that had been dormant for a decade, inspired to make the change because of low natural gas prices, the company said Thursday.
The methanol plant, which has a capacity to produce 780,000 tons of methanol per year, was shut down in 2004 because natural gas prices in the United States became too high, the company said.
The plant transforms natural gas into methanol, a material used to manufacture chemicals like acetic acid and formaldehyde. It is also used in adhesives, foams, plywood, solvents and windshield washer fluid, and it can be used as a direct replacement for gasoline in cars.
Several other companies have recently announced plans to build or restart methanol plants along the U.S. Gulf Coast to take advantage of low natural gas prices to produce the chemical product.
The methanol plant restart is the first in a series of U.S. Gulf Coast projects by LyondellBasell to take advantage of the natural gas price advantage that we enjoy from shale gas, said Patrick Quarles, senior vice president of intermediates and derivatives for LyondellBasell, in a written statement. The methanol plant project and our other significant debottleneck projects will bring new capacity into our system earlier and at substantially lower cost than constructing entirely new facilities.
LydondellBasell began restarting the methanol unit in early December, spokesman David Harpole said.
The fact that the unit had not been in service for about a decade required some time to ensure that operations were stable, Harpole said.
The plant has added 24 new jobs to LyondellBasells complex in Channelview, Texas, Harpole said.
Harpole would not disclose how LyondellBasell had sourced methanol for all of its chemical production prior to the plant, or whether the company will be able to now fully source all of its methanol needs.
Yet we have FReepers who advocate higher energy costs, to promote job creation. Go figure.
The economic ghouls at the EPA are probably trying to figure out a way to put a stop to this!
I've seen some claiming that preventing exports will keep prices down. Is that your reference?
Nah, I’m talking about those who want to tax imported oil.
Best money I ever made was working for Zachry on the Lyondell plant on hwy 225.
Coker, Hydro, offsite and Crude unit replacement.
Two and a half years I averaged $75,000 or a bit more.
Plants are good things to have around.
Increasing US energy production hurts OPEC, and reduces the overall price of energy (greater supply than demand).
Hurting OPEC is the key, as many countries in OPEC are anti-American and support Islamic terrorism.
OT is a good thing.
Combined with night shift pay it’s a freakin’ money machine.
Oh, I get that . . . I’m talking about people who think raising prices on oil will result in economic prosperity, without considering the fact that (probably) the most anti-oil Administration in our history is trying to prevent it from happening.
We’ve only scratched the surface of just how much shale oil/gas there is...
That isn't rocket science.
methanol also fuels more than a few race cars.
We have to get the political thing straightened out too!!