Sasol, Ineos plan HDPE plant for Texas

Sasol Ltd.-owned Sasol Chemicals (USA) LLC and Ineos Europe AG-subsidiary Ineos Olefins & Polymers USA have reached final investment decision to form a joint venture to build a high-density polyethylene (HDPE) plant in LaPorte, Tex. (OGJ Online, Mar. 10, 2014).

The 50-50 joint venture will produce 470,000 tonnes/year of bimodal HDPE using Innovene S process technology from Ineos, the companies said.

Ineos will act as operator of the HDPE plant at its LaPorte-area Battleground Manufacturing Complex, the partnership said.

While all relevant permits have been secured, definitive agreements for the project continue to be finalized, and given that the plant will be debt-financed, the investment decision remains conditional on achieving financial close, according to the companies.

If the project reaches final approval, Sasol and Ineos will supply the ethylene feedstock required to produce HDPE in proportion to their respective ownership positions.

The companies said they expect plant start-up in 2016.

Sasol previously has said that the HDPE plant would be located in the US to complement production from the company’s ethane cracker and derivatives project in southwest Louisiana (OGJ Online, Mar. 10, 2014).

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