Lyondell Reduces Output at Channelview and La Porte

LyondellBasell Industries NV reduced production at its La Porte and Channelview chemical plants in Texas after a fire at an Enterprise Products Partners LP facility in Mont Belvieu cut their ethane and propane supply.

“We receive ethane and propane from Enterprise for La Porte and ethane for Channelview,” David Harpole, a company spokesman, said in a telephone interview. “We have reduced rates at both as we assess options for alternative supplies.”

The production unit at the La Porte plant may shut because of the loss of pipeline feed pressure from a supplier, according to a filing with the Texas Commission on Environmental Quality.

There are two olefins units at the Channelview complex, each with a capacity of 1.95 billion pounds a year, according to Harpole. The La Porte plant also has an ethylene cracker, according to the spokesman.

Lyondell has alternative supply options, although the fire has “impacted our operations and we are making adjustments to compensate,” Harpole said.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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