Westlake & Trinidad & Tobago Govt JV for ethylene plant
19 Apr '06
3 min read
Petrochemicals producer Westlake Chemical Corporation (WLK) and The Government of the Republic of Trinidad and Tobago (Trinidad and Tobago) announced that the parties have entered into a Memorandum of Understanding (MOU) for Westlake to develop an ethane- based ethylene, polyethylene and other derivatives project in that country.
The project evaluation will be undertaken in conjunction with The National Gas Company of Trinidad and Tobago, Ltd. (NGC), and the National Energy Corporation of Trinidad and Tobago, Ltd (NEC). Trinidad and Tobago has expressed an interest in becoming a minority equity partner in the project.
As currently envisioned, the project would use 37,500 barrels per day of ethane to produce 570,000 tonnes per year of ethylene, which would in turn be used to produce polyethylene and other derivative products. The project could be expanded in the future as more ethane becomes available.
The capital cost is initially estimated to be approximately US$1.5 billion. The size, scope, and cost of the project are subject to further definition as the parties undertake a detailed feasibility study pursuant to the MOU. It is expected that the project would be financed through a project financing arrangement. The preliminary project schedule shows that construction would start in late 2007 and that the project would start operations in late 2010.
"Westlake is pleased to announce the signing of this important MOU and views this as an opportunity to utilize our strong background in ethylene, polyethylene and other derivative products and to work with the Government of the Republic of Trinidad and Tobago in furtherance of the strategic development of their globally competitive petrochemical industry.”
marketing@alchempro.com
