LyondellBasell Investor Day Highlights Plans to 'Seize the Moment'
Growth Plans Capitalize on Low-Cost Feedstocks
NEW YORK, March 13, 2013
NEW YORK, March 13, 2013 /PRNewswire/ -- LyondellBasell (NYSE: LYB)
executives, led by CEO Jim Gallogly, today told participants at the company's
Investor Day in New York how LyondellBasell is preparing to build upon its
record 2012 performance which included $5.8 billion of EBITDA and earnings of
$4.96 per share.
"The availability of abundant supplies of natural gas and natural gas liquids
from shale deposits is creating a tremendous advantage for U.S. manufacturers,
and LyondellBasell is well-positioned to seize this opportunity at our Gulf
Coast and Midwest facilities," Gallogly said.
LyondellBasell expects to begin construction this month on the first of
several projects that will expand U.S. ethylene capacity by approximately 20
percent. "Our program of expanding current assets will add the capacity
equivalent to a large existing cracker, be on stream earlier, and avoid the
higher costs of constructing a new grassroots plant," Gallogly said.
LyondellBasell announced plans to expand its Corpus Christi, Texas, cracker by
800 million pounds per year of ethylene, with construction scheduled to begin
in 2014 and projected completion in 2015. Construction associated with the La
Porte, Texas, expansion is expected to begin this month and will add 800
million pounds per year of ethylene upon completion in 2014. A third project
will add 250 million pounds per year of ethylene at Channelview, Texas, with
completion projected in 2015. LyondellBasell currently has 6 crackers in the
United States with an annual capacity of 9.8 billion pounds.
LyondellBasell is configuring its U.S. olefins assets to run 100 percent
domestically-produced feedstocks, with up to 90 percent being natural gas
liquids such as ethane, the company told the Investor Day audience.
In another project to take advantage of low-cost natural gas supplies in the
United States, LyondellBasell announced that construction has commenced on the
restart of a 260 million gallon-per-year methanol plant at Channelview.
Startup of the methanol plant is projected for fourth quarter 2013.
Additionally, LyondellBasell said that the ongoing retrofit at the Houston
refinery will enhance operating flexibility and accommodate a greater
percentage of light domestic crude oil and heavy Canadian crude oil. Upon
completion, the refinery's processing capability will broaden to as much as 50
percent light crude oil and approximately 175,000 barrels per day of heavy
Canadian crude oil.
In Europe, the 40 percent expansion of butadiene capacity at Wesseling,
Germany is scheduled for completion later in 2013.
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical
and refining companies and a member of the S&P 500 Index. LyondellBasell
(www.lyondellbasell.com) manufactures products at 58 sites in 18 countries.
LyondellBasell products and technologies are used to make items that improve
the quality of life for people around the world including packaging,
electronics, automotive parts, home furnishings, construction materials and
This news release contains forward-looking statements with respect to the
company's planned growth projects. These statements are not guarantees of
future performance or success of these projects. Factors that could cause
actual results to differ from the forward-looking statements contained in this
release include, but are not limited to, availability, cost and price
volatility of raw materials and utilities; supply/demand balances; industry
production capacities and operating rates; uncertainties associated with
worldwide economies; legal, tax and environmental proceedings; cyclical nature
of the chemical and refining industries; operating interruptions; current and
potential governmental regulatory actions; terrorist acts; international
political unrest; competitive products and pricing; technological
developments; the ability to comply with the terms of our credit facilities
and other financing arrangements; the ability to implement business
strategies; and other factors affecting our business generally as set forth in
the "Risk Factors" sections of our Forms 10-K and Forms 10-Q filed with the
Securities and Exchange Commission, which can be found at
www.lyondellbasell.com on the Investor Relations page and on the Securities
and Exchange Commission's website at www.sec.gov.
The illustrative results or returns of growth projects are not in any way
intended to be, nor should they be taken as, indicators or guarantees of
performance. The assumptions on which they are based are not projections and
do not necessarily represent the Company's expectations and future
performance. You should not rely on illustrated results or returns or these
assumptions as being indicative of our future results or returns.
Media Contact: David A. Harpole +1 713-309-4125
Investor Contact: Douglas J. Pike +1 713-309-7141
SOURCE LyondellBasell Industries
Press spacebar to pause and continue. Press esc to stop.