LyondellBasell to Purchase Olefins Pipeline System
HOUSTON, June 7, 2011 /PRNewswire via COMTEX/ -- LyondellBasell (LYB) today
announced the signing of an agreement to purchase approximately 200 miles of
pipeline near Houston from BP by its Equistar Chemicals, LP subsidiary.
The pipelines and metering stations comprise a Houston area olefins distribution
system transporting ethylene and propylene production from Channelview, Texas to
Equistar's storage terminal at Mont Belvieu, Texas and facilities in Deer Park,
La Porte and the Bayport Industrial District in Pasadena, Texas. The purchase
also includes a natural gas liquids (NGL) feedstock supply line into Channelview.
Equistar currently holds a long-term lease for use of the pipelines, which are
owned and operated by BP. Acquiring the pipelines provides Equistar with a
secure, cost-effective transportation system for its ethylene and propylene
production in the Houston area.
Equistar's pipeline group currently operates and maintains approximately 1,200
miles of pipeline in Texas, and transports approximately 20 billion pounds of
product and 80 million barrels of feedstock annually. An undetermined number of
BP pipeline employees will join Equistar with the purchase.
The transaction is subject to government review and is expected to close in
August. Terms of the transaction were not disclosed.
LyondellBasell (LYB) is one of the world's largest plastics, chemical and
refining companies. The company 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
biofuels. More information about LyondellBasell can be found at
lyondellbasell.com.
Media Contact:David A. Harpole +1 713-309-4125
Investor Contact: Douglas J. Pike +1 713-309-7141 |
