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MOSCOW (MRC) -- LyondellBasell and
Sasol (Johannesburg) have closed a previously announced USD2-billion transaction
that sees the companies form their Louisiana Integrated Polyethylene joint
venture (JV) at Lake Charles, reported Chemweek.
LyondellBasell now owns 50% of
Sasol�s new 1.5-million metric tons/year steam cracker, and low-density
polyethylene (LDPE) and linear low-density polyethylene (LLDPE) plants - with
combined capacity for 900,000 metric tons/year - as well as associated
infrastructure at Lake Charles. The deal was closed on 1 December following
regulatory and shareholder approvals, with the proceeds to be received within
two days of closing, Sasol says.
LyondellBasell will operate the three
assets and market the polyethylene (PE) products on behalf of the JV
shareholders. Approximately 400 of Sasol�s employees at Lake Charles who
directly support the assets have now joined LyondellBasell, the companies say.
Sasol achieved
beneficial operation of the final plant at the Lake Charles Chemicals Project,
the 420,000-metric tons/year LDPE unit, mid-November.
�The formation of
this JV is part of our approach to growing our core businesses while positioning
the company to benefit from improving economic conditions,� says LyondellBasell
CEO Bob Patel. �We believe our ability to operate efficiently and serve growing
markets will create exceptional long-term value for our shareholders of both
companies.�
�This transaction accelerates the transformation of our
chemicals business toward a focus on specialty chemicals,� says Sasol�s
president and CEO Fleetwood Grobler. �We�re proud of the world-scale assets
we�ve built in southwest Louisiana and look forward to working with
LyondellBasell to realize their full potential and create value for all our
stakeholders.�
LyondellBasell agreed in October to acquire the 50% stake
in Sasol�s base chemicals business at Lake Charles. The agreement included
customary rights for each partner regarding the potential future sale of its
ownership interest, the companies said at the time.
Sasol has retained
full ownership and operational control of its existing 454,000-metric tons/year
Lake Charles East Plant ethane cracker, an R&D complex, and its performance
chemicals assets at Lake Charles producing Ziegler alcohols and alumina,
ethoxylates, Guerbet alcohols, paraffins, comonomers, linear alkylbenzene,
ethylene oxide, and ethylene glycol.
Ethylene and propylene are
feedstocks for producing polyethylene (PE) and polypropylene
(PP).
According to MRC"s ScanPlast report,
Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine
months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE)
shipments increased. At the same time, PP shipments to the Russian market
reached 880,130 tonnes in the nine months of 2020 (calculated using the formula:
production minus exports plus imports, exluding producers" inventories as of 1
January, 2020). Supply increased exclusively of PP random
copolymer.
Sasol is an international integrated chemicals and energy
company that leverages technologies and the expertise of our 31 270 people
working in 32 countries. The company develops and commercialises technologies,
and builds and operates world-scale facilities to produce a range of high-value
product stream, including liquid fuels, petrochemicals and low-carbon
electricity.
LyondellBasell is one of the largest plastics, chemicals and
refining companies in the world. Driven by its 13,000 employees around the
globe, LyondellBasell produces materials and products that are key to advancing
solutions to modern challenges like enhancing food safety through lightweight
and flexible packaging, protecting the purity of water supplies through stronger
and more versatile pipes, and improving the safety, comfort and fuel efficiency
of many of the cars and trucks on the road. LyondellBasell sells products into
approximately 100 countries and is the world"s largest licensor of polyolefin
technologies. |
