Propylene oxide 　　　　　　　　　　　　　　　　　　　　

September 10, 2001

*Millions of pounds of propylene oxide (PO) per year.

Commercial production is from propylene and chlorine in a chlorohydrin process (Dow, Freeport and Plaquemine), or from peroxidation of propylene and another petrochemical reactant that results in PO plus an additional co-product. At Lyondell's Channelview, Tex., plant, styrene is co-produced with PO using ethylbenzene. Lyondell's Bayport, Tex., plant produces PO and tert-butyl alcohol using isobutane. At Port Neches, Tex. Huntsman employs a similar process but produces methyl t-butyl ether (MTBE) instead, as the co-product.

Lyondell Chemical purchased the Arco Chemical Company in 1998, acquiring the PO plants in Bayport and Channelview, Tex.

Since 1998, Huntsman has added roughly 125 million pounds of capacity at Port Neches, through debottlenecking.

Last year, Dow has expanded its PO capacities through incremental expansions of 100 million pounds at its plant in Freeport, Tex., and 60 million pounds at its site in Plaquemine, La.

Also last year, Bayer acquired Lyondell's polyols business, and with it, a 36 percent equity interest in Lyondell's PO operations. The deal gives Bayer the right to purchase 1.6 billion pounds per year of PO. As part of its agreement with Bayer, Lyondell will build a joint venture PO and styrene monomer plant in Rotterdam, the Netherlands.

In March of this year, Dow announced that it is delaying construction of its new PO (and styrene monomer) plant, originally scheduled for completion in 2004 on the US Gulf Coast because of a shift in the supply-demand balance. The new plant is sized for a capacity of 550 million pounds of propylene oxide.

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TEXACO COMPLETES SALE OF PO/MTBE BUSINESS TO HUNTSMAN SPECIALTY CHEMICALS CORPORATION

MARCH 21, 1997.

WHITE PLAINS, N.Y., March 21 - Texaco Inc. announced today that it has completed the sale of its propylene oxide/methyl tertiary butyl ether (PO/MTBE) business to Huntsman Specialty Chemicals Corporation, a subsidiary of Huntsman Corporation, for approximately $600 million.

The PO/MTBE manufacturing site, located adjacent to Huntsman facilities in Port Neches, Texas, has a production capacity of approximately 400 million pounds per year of propylene oxide and approximately 15,000 barrels per day of MTBE. Huntsman has operated the plant for Texaco since it began operations in August 1994.

In addition to the PO/MTBE business, Huntsman today acquired Texaco's exclusive, state-of-the art PO/MTBE manufacturing technology, including the right to license the technology around the world. Texaco and Huntsman also have agreed to a long-term MTBE supply agreement to ensure Texaco a stable source of the gasoline additive.

Commenting on the sale, Texaco Chairman and Chief Executive Officer Peter I. Bijur said, "Today's closing marks the final step in completing the sale of Texaco's chemical business. This will allow Texaco to focus on its exploration, production, marketing and related core businesses."

Propylene oxide is a highly versatile petrochemical used in the home furnishings, construction, appliance, packaging, transportation and surfactants industries. Among its many product applications are foams for furniture and automobile seats; pleasure boats; fiberglass tubs and showers; aircraft deicing fluids; dishwasher detergents; and industrial solvents.

MTBE is a gasoline additive and oxygenate that increases octane and causes gasoline to burn more cleanly. Many areas of the country use MTBE, particularly in the winter months, to help meet requirements of the U.S. Clean Air Act.

Lyondell

http://www.lyondell.com/html/FR_products.html

Lyondell is the world's leader in PO. From just over 200 million pounds per year production capacity in 1969, Lyondell now has the capacity to produce nearly 3.7 billion pounds per year (1680 KT/year). Lyondell, through wholly owned facilities and joint ventures, manufactures PO in the U.S., Europe and Asia. Lyondell produces PO through two distinct process technologies that yield co-products. One process yields tertiary butyl alcohol (TBA) as the co-product; the other process yields styrene monomer (SM) as the co-product. In 1995 Lyondell consumed approximately 54 percent of its PO production internally for derivative products. To meet the demand growth in PO derivatives Lyondell has announced plans to increase PO capacity by about 20 percent. The combination of our proprietary technology, global manufacturing base and extensive experience make Lyondell a dependable, cost-effective and efficient supplier worldwide.

Lyondell's worldwide competitor is Dow Chemical Company. Dow's PO operations are based on chlorohydrin technology, and Dow is integrated upstream from chlorine and propylene and downstream into a variety of PO derivatives.

Channelview manufacturing site :
Ground was broken for the plant in 1974. Production of ethylbenzene (EB), propylene oxide (PO) and styrene monomer (SM) began with a single unit in 1977. Originally the plant operated as the Channelview plant of Oxirane Chemical Company, a joint venture of Halcon International and ARCO Chemical established in 1966. In 1980, Halcon sold its interest in Oxirane to ARCO Chemical, a subsidiary of Atlantic Richfield. In 1990, ARCO Chemical became a publicly held company. Lyondell acquired the Channelview plant and other ARCO Chemical assets in 1998.

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(November 16, 1999 Lyondell Chemical)

LYONDELL CHEMICAL COMPANY ANNOUNCES SALE OF WORLDWIDE POLYOLS BUSINESS TO BAYER

Lyondell Chemical Company (NYSE:LYO) today announced that it has reached agreement with Bayer to sell its worldwide polyols business, along with an (a 36 percent) equity interest in Lyondell's U.S. propylene oxide operations. The sale price will be approximately $2.45 billion.

"We expect to accelerate the growth of our PO business through this unique agreement," said Dan F. Smith, President and Chief Executive Officer of Lyondell Chemical Company. "This transaction enables us to accelerate cash flows from the polyols business while at the same time maintaining the strategic linkage to the derivatives markets through the world's premier urethanes producer. The transaction will be immediately accretive to Lyondell's earnings and cash flow and will enable Lyondell to improve its balance sheet by paying off a significant portion of the debt associated with the 1998 ARCO Chemical acquisition."

Lyondell will continue to be an important merchant supplier of PO and will focus on expanding its other PO derivatives businesses, including propylene glycol, butanediol (where the Company has proprietary technology) and propylene glycol ethers.

As part of the transaction, Lyondell and Bayer have agreed to pursue a joint venture for the construction of PO 11, a previously announced worldscale propylene oxide/styrene monomer plant in Europe.

Included in the proposed sale to Bayer are Lyondell polyols manufacturing facilities located at South Charleston and Institute, West Virginia; Channelview, Texas; Rieme, Belgium; Fos sur Mer, France; Anyer, Indonesia; and Kaohsiung, Taiwan. Also included in the transaction are Lyondell polyols technology operations in Singapore; Villers St. Paul, France; South Charleston, West Virginia, and Newtown Square, Pennsylvania. Not included is Lyondell's global TDI business. Lyondell will continue to operate all of the existing Lyondell PO facilities and will serve as operator of the polyols facilities at Channelview, Texas, and Fos sur Mer, France.

The agreement is subject to final approval by both companies at Board meetings in December. Closing of the transaction is subject to U.S. and European antitrust clearance and other conditions that are typical for transactions of this type. Closing is anticipated to occur in the first half of 2000.

Lyondell Chemical Company, with headquarters in Houston, Texas, is the world's largest producer of propylene oxide (PO); the world's number two supplier of polyols and TDI (toluene diisocyanate); a leading producer of propylene glycol; a leading producer of other PO derivatives such as BDO (butanediol) and PGE (propylene glycol ether); and a producer of styrene monomer and MTBE as co-products of PO production.

Through its 41% interest in Equistar Chemicals, LP, Lyondell also is the largest producer of ethylene, propylene and polyethylene in North America and a leading producer of polypropylene,,ethylene oxide,ethylene glycol, high value-added specialty polymers and polymeric powder.

Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest and most profitable refiners in the United States, processing very heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.

Lyondell is the third largest methanol producer in the U.S., through its 75% interest in Lyondell Methanol Company, L.P.

The statements in this release relating to matters that are not historical facts are forward-looking statements that involve risks and uncertainties, including, but not limited to, future global economic conditions, production capacity, competitive products and prices and other risks and uncertainties detailed in the Securities and Exchange Commission filings of Lyondell.

Lyondell has two European manufacturing locations:
Botlek, near Rotterdam in The Netherlands, makes PO and MTBE. Most of the PO is converted on site into derivatives such as propylene glycols and propylene glycol ethers. Feedstocks for the Botlek facility are unloaded and stored at a deep-water terminal in nearby Europoort.

Fos-sur-Mer is located on the Mediterranean coast of France, near Marseilles. It manufactures PO and derivatives, as well as the gasoline component MTBE, and has one of the world's largest polyols plants.

Lyondell and Bayer Announce Propylene Oxide/Styrene Monomer Joint Venture in the Netherlands

HOUSTON, December 19, 2000 　　　　　　　　　　　　　　　　onstream by end Q3 2003

Lyondell Chemical Company and Bayer AG announced today the formation of a manufacturing joint venture for the previously announced, world-scale propylene oxide (PO)/styrene monomer (SM) facility, known as PO-11, now under construction at the Maasvlakte site in Rotterdam, the Netherlands. The agreement has been approved by the Boards of Directors of both companies, and PO-11 is scheduled for start-up in early 2003.

Lyondell and Bayer will each have a 50 percent interest in the joint venture, which will be a partnership under Dutch law. Under the terms of the agreement, Bayer has purchased its interest in PO-11 from Lyondell with a cash payment of 50 percent of the costs incurred by Lyondell for the project to date. Future costs will be shared on an equal basis by both companies.

"We are pleased to have Bayer participating with Lyondell in this state-of-the-art facility, which will benefit from integration with the existing Lyondell operations in the Netherlands," said Dan F. Smith, President and Chief Executive Officer of Lyondell. "By building PO-11 together, Lyondell and Bayer can take advantage of the economies of a world-scale plant and better match each company's growing needs for propylene oxide and styrene monomer."

The world-scale PO-11 plant will have a capacity of 625 million pounds (285,000 metric tons) of PO and 1.4 billion pounds (640,000 metric tons) of styrene. Each partner will independently off-take its 50 percent share of the PO and styrene products from PO-11.

Lyondell, with approximately 30 years of operating experience and technology improvements for the PO/SM process, will operate the facility using its proprietary technology.

A large portion of Lyondell's share of the PO output will be used to supply feedstock for Lyondell's new butanediol (BDO) plant being built at the Botlek site and scheduled for start-up in early 2002. With annual capacity of 280 million pounds (127,000 metric tons) of BDO, this new facility will be the lowest cost BDO plant in the world. Lyondell's 50 percent share of the SM output will be used to supply its established European merchant position and to support its global network of customers.

As previously announced, ABB Lummus Global has been awarded the facility's engineering, procurement and construction contract. Letters of intent have been signed for utilities and key raw materials, and site preparation is under way. The project is expected to create jobs for approximately 1,800 to 2,000 construction employees and 200 permanent operating employees.

Currently, Lyondell operates world-scale PO plants in Europe, at Botlek in Rotterdam and at Fos-sur-Mer in southern France, and in the United States at Channelview and Bayport, Texas (in part for its U.S. PO partnership with Bayer). The Maasvlakte site is located near Lyondell's Botlek facility.

Platts 2003/7/4

Lyondell/Bayer Dutch PO-SM JV expected onstream by end Q3 2003

US' Lyondell Chemical Co and Germany's Bayer AG propylene oxide-styrene monomer joint venture at Maasvlakte, the Netherlands, is expected to be onstream by end of the third quarter, a source close to the project said Friday. The project, known as PO 11, would produce roughly 640,000mt/yr of styrene and about 280,000mt/yr of PO.

BASELL in operation

Joint venture of BASF and Shell produces styrene and propylene

MOUNT OLIVE, October 07, 1999 -- Today, (October 7, 1999) Annemarie Jorritsma, the Dutch Minister of Economic Affairs, inaugurates a new plant for the production of styrene and propylene oxide (SM/PO) at Moerdijk in the province of North Brabant, the Netherlands. The plant, which operates on the basis of a process developed by Shell and which called for investments amounting to about DM 900 million, will be operated by the joint venture BASELL, in which BASF and Shell each hold 50 percent.

The new plant, with an annual capacity of 565,000 metric tons of styrene and 250,000 metric tons of propylene oxide, is located in the immediate vicinity of Shell's chemical facilities in the Netherlands. SM/PO is produced there as well. The proximity of the plants to each other as well as the shared utilization of existing installations hold promise of remarkable synergistic effects. Together with the new plant, Moerdijk will be one of the world's largest SM/PO sites.

Dr. J・gen Hambrecht, member of BASF's Board of Executive Directors, sees decisive advantages in this: "We have the most advanced and most competitive technology; we produce on a world scale and we have a plant that is optimally integrated into a Verbund site."

For Dr. Jeroen van der Veer, Managing Director of the Royal Dutch/Shell Group, the investment in the SM/PO production facility also comes at a most opportune time: "When news about Shell's chemical operations relate mainly to divestitures, the startup of a new plant is particularly welcome."

The new plant was built within a record time of just two years; that was some six months less than usually has to be earmarked for such a project. BASF and Shell will build a similar plant in Seraya, Singapore, which is scheduled to go on stream in 2002.

Styrene is a starting material for plastics such as polystyrene and styrene copolymers, in particular ABS (acrylonitrile-butadiene-styrene), SAN (styrene-acrylonitrile) and ASA (acrylonitrile-styrene acrylic ester). Important application areas for these products are the packaging business, the electronics and electrical industries, automotive construction and the building sector.

Propylene oxide is one of the most important links in the value-added chain, with polyurethane at the top. These versatile plastics are used, for instance, in the automotive industry, in the construction sector, for shoe soles, sports equipment and upholstered furniture.

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2000年11月13日　http://www.basf-japan.co.jp/news/doc/001113.rtf

BASFとシェル、アジアとヨーロッパのSM/PO合弁の社名変更

BASFとロイヤルダッチ・シェル（英蘭シェル）は両社がヨーロッパとアジアに持っているスチレンモノマー（SM）とプロピレンオキサイド（PO）の折半出資合弁会社２社の社名を変更することを11月７日明らかにしました。

その内の１社は、昨年オランダのモルジクにおいてSM/PO生産プラントの操業を開始した「バセル（BASELL　CV）」で、社名を「エルバ（ELLBA　CV）」に変更します。
２社目は今年初めにシンガポールのセラヤにてSM/PO生産プラントの建設が始まった「バセル・イースタン社（BASELL　EASTERN　Private　Ltd.）」で、こちらは社名を「エルバ・イースタン（ELLBA　Eastern　Private　Ltd.）に変更します。シンガポールでのプラント建設は計画通り進行しており、操業開始は2002年の後半が予定されています。

今回の社名変更は、先ごろ設立されたBASFとシェルのポリオレフィン合弁会社、「バセル・ポリオレフィン社」の持株会社である「バセル社（Basell　CV）」（本社・オランダ、ホフドルプ）との混同を避けるためにとられる措置です。

August 22, 2003 Business Wire

Sasol Looks at Propylene Oxide and Propylene Glycol Ethers Production in South Africa

Sasol is studying the viability of producing propylene oxide and propylene glycol ethers at its Midlands site at Sasolburg in South Africa. Propylene glycol ethers are solvents used in products such as water-based paints, inks, coatings and adhesives.

Propylene oxide is a bulk chemical with above average growth rates and is used as a raw material in the production of polyurethane, propylene glycol and glycol ethers. Sasol is investigating the possibility of processing propylene oxide to produce propylene glycol ethers, and to sell propylene oxide on the merchant market by late 2006.

Sasol chief executive Pieter Cox says: "Basic engineering is underway to determine the viability of a proposed 60 000 metric ton per annum propylene oxide plant and the outcome should be known by the second quarter of 2004. Of particular significance is the testing of an exciting new environmentally friendly process technology. "

The new process technology developed by Degussa AG and Uhde GmbH employs hydrogen peroxide to oxidise propylene at high yield with no significant generation of by-products, except for water.

Managing director of Sasol Solvents, Reiner Groh says: "Should the project go ahead, the local production of propylene glycol ethers will add significant value to Sasol Solvent's current range of products."

Sasol, with a market capitalization of approximately USD 7 billion, is an integrated oil and gas group with substantial chemical interests. Based in South Africa and operating in 15 other countries throughout the world, Sasol is the leading provider of liquid fuels in South Africa and a major international producer of chemicals, using a world leading technology for the commercial production of synthetic fuels and chemicals from low grade coal. In the future Sasol expects to apply this technology to convert natural gas to diesel and chemicals. Sasol manufactures over 200 fuel and chemical products that are sold in more than 90 countries and also operates coal mines to provide feedstock for synthetic fuels and chemical plants. The company also manufactures and markets synthesis gas and operates the only inland crude oil refinery in South Africa.

March 19, 2004 Bayer/Lyondell

Joint Venture Between Bayer and Lyondell:
World's Most Efficient Production Plant for Propylene Oxide Inaugurated Near Rotterdam
http://www.press.bayer.com/News/News.nsf/id/0A112D4AD365F07EC1256E5C00302BFD

Following two and a half years' construction, Lyondell Chemical Company and Bayer MaterialScience AG today officially inaugurated a world-scale propylene oxide/styrene monomer (PO/SM) manufacturing facility in Maasvlakte, near Rotterdam. The plant is one of the largest of its kind in the world. The new facility is a 50/50 joint venture between Lyondell and Bayer, and uses Lyondell's proprietary PO/SM technology, the most economical production method currently available. Approximately 250 employees are employed by the site.
"This world-scale plant, with its leading technology and ideal location near the port of Rotterdam, provides a perfect platform for the production and distribution of our products within Europe and for export to the rest of the world," said Dan Smith, Lyondell President and CEO. He noted that Lyondell is the world's leading PO producer and estimated that the plant represents roughly 5 percent of the industry's global PO capacity. It also establishes Lyondell as a significant styrene producer in Europe.

"This is a significant step for Bayer," said Dr. Tony Van Osselaer, Board Member of Bayer MaterialScience AG and responsible for Production and Technology. "Bayer MaterialScience holds a leading position in the polyurethane and ABS plastics markets. This plant gives us long-term access to key raw materials. Consequently, our customers will benefit through a secure supply."

The new plant has an annual capacity of 285,000 metric tons (625 million pounds) of PO and 635,000 metric tons (1.4 billion pounds) of styrene. Lyondell estimates that worldwide demand for PO was approximately 5.1 million metric tons (11.2 billion pounds) in 2003. Approximately 90 percent of that volume was used for the manufacture of polyols, propylene glycols (PG) and propylene glycol ethers (PGE). The remainder went into the manufacture of specialty products such as butanediol (BDO) and its derivatives.

Propylene oxide is used to make highly versatile polyurethane raw materials which, in turn, are used in the manufacture of thousands of everyday products, ranging from antifreeze to cosmetics. Polyurethanes are used to produce rigid foams for thermal insulation in the construction industry, and flexible foams for mattresses, furniture upholstery and seat cushioning in automotive applications. PO also is a basic chemical used as a building block in the production of intermediate products.

Styrene monomer is used to make a variety of plastics, from expandable foam to high-end engineering plastics. End uses of styrene include disposable food service products, packaging for electronic equipment, CD holders, paper coatings, boat hulls, and interior automotive components. In the construction industry, it is used to produce pipes, tanks and lighting fixtures. It is also commonly found in insulation and anticorrosion applications, and in the manufacture of rubber products.

Dow 2004/6/9

Dow Adjusts its Nameplate Propylene Oxide Production Capability
Stade, Germany Plant Capability Increased to 590 kilotons per annum
http://www.dow.com/dow_news/prodbus/2004/20040609d.htm

Dow announced that it will upwardly adjust the nameplate capacity of its Stade, Germany propylene oxide plant to 590 kilotons per annum (1.3 billion pounds), which represents a more than 7 percent increase over the 550 kilotons per annum (1.2 billion pounds) previously reported by the company.

"As raw material and energy costs remain a challenge in the chemical industry, optimizing our assets and setting new standards for efficiency in production, without large capital expenditures, is a high priority for us," said Earl Shipp, business director, Dow PO/PG.

"We have continually improved and optimized our process technology over the years. Dow continues to practice the chlorohydrin technology to make PO and we now operate the first and second largest PO production facilities in the world. The efficiencies we can achieve through economies of scale, Six-Sigma, and process technology improvements keep us competitive in an ever-changing world," said Martine Schoenmaker, Chlorohydrin Technology Center Leader.

The world's largest single producer of propylene oxide, Dow's global propylene oxide capability now totals 1,860 kilotons per annum (4.1 billion pounds). In addition to Stade, Dow produces propylene oxide in Texas, Louisiana, and Brazil.

"Increasing PO capacity at existing facilities without significant capital investment has been a Dow hallmark. In the past 10 years, Dow has added the equivalent of 2.5 world-scale PO plants for less than the 25% of the capital required for new construction," said Schoenmaker.

This follows Dow's announcement earlier in the year of a 14 percent increase in its global propylene glycol (PG) production capacity. At 550 kilotons per annum (1.2 billion pounds), Dow is the world's largest producer of propylene glycol.

"These two low-cost capacity increases are good news for Dow customers. Both confirm Dow's commitment to propylene oxide and propylene glycol as well as to polyether polyols and other PO Derivative products. The increases also demonstrate Dow's ability to provide for the needs of its customers in the most cost-effective manner possible, especially in light of rising and volatile energy prices," said Shipp.

March 15, 2004　Dow

Dow increases global propylene glycol capacity
http://www.dow.com/dow_news/prodbus/2004/20040315a.htm

The Dow Chemical Company announced today that it has increased its total global propylene glycol (PG) production capacity for 2004 to 1.2 billion pounds. This represents an increase of 14% in Dow's global capacity for PG production versus 2003, without capital expenditures. The company increased its capacity in Europe, in particular, by approximately 20 percent versus 2003.

"In 2003, PG supply was tight across the globe and, at the same time, raw material and energy costs were high. We looked at how we could provide more glycols to the marketplace in the most efficient manner" said Earl Shipp, business director, Dow PO/PG. "We set a goal to increase our production without any large capital expenditures. We were able to exceed our goal with Six Sigma and production optimization methods, implemented during the second half of 2003. The efficiencies achieved with these efforts allowed us to significantly increase our production in 2004, without building new capacity." Shipp adds that 2004 PG supply is expected to be remain tight across the globe according to industry reports.

Dow cites its 2004 PG capacities for each of its locations as follows:

"We expect to produce an additional 150 million pounds of PG in 2004," said Shipp. "In the meantime, I am extremely pleased to have this capacity up, running and meeting customer demand. Our capacity gain at our Stade plant was especially important to us, as it offsets capacity at our idled Priolo site. "
Dow's propylene glycol capacity at Priolo, Italy has been idled since January, 2003, allowing the company to concentrate its production at lower-cost and raw material-integrated sites around the globe.

The company has also announced that it will continue its order control in North America for propylene glycol industrial and propylene glycol USP/EP through March 31, 2004, due to a continued tight supply situation on a global basis. Tight supply, coupled with high costs of hydrocarbons, energy and feedstock materials for PG production has prompted Dow to announce multiple increases in its pricing for propylene glycol the beginning of 2004 in all geographic areas.

Dow, with a global capacity of more than one billion pounds, is an industry leader in the manufacture of propylene glycol. Dow produces PG in Altona, Australia; Aratu Brazil; Freeport, Texas; Plaquemine, Louisiana; and Stade, Germany. Dow also offers propylene oxide, (PO), monopropylene glycol (MPG), dipropylene glycol (DPG) and tripropylene glycol (TPG) globally. For more information about propylene glycol at Dow, visit the www.dowpg.com website.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.