2006/4/18 Westlake
Chemical
Westlake Chemical and The
Republic of Trinidad and Tobago Announce Memorandum of
Understanding; Development of an Ethane-Based Ethylene,
Polyethylene and Other Ethylene-Derivatives Project
http://phx.corporate-ir.net/phoenix.zhtml?c=180248&p=irol-newsArticle&ID=844253&highlight=
Westlake Chemical
Corporation ("Westlake") and The Government of the
Republic of Trinidad and Tobago ("Trinidad and Tobago")
announced today 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. This
project, with its advantaged location and feedstock, will serve
the growing markets in the Americas," stated Albert Chao,
President and CEO of Westlake Chemical Corporation.
"This project is an important step in our continued efforts
to diversify the energy sector and to create spin-off industries
thereby promoting more linkages between the non-oil and petroleum
sectors of our economy. Further, this project once on stream,
would help to ensure the optimal utilization of our hydrocarbon
resources by diversifying the sources of national income while
creating development opportunities for the welfare and prosperity
of the nation .... This investment therefore has significant
opportunities for job- creation, wealth generation, and new
skills development for the people of Trinidad and Tobago,"
said Dr. Lenny Saith, Minister of Energy and Energy Industries.
The National Gas Company of Trinidad and Tobago, Ltd (NGC) is a
Trinidad and Tobago company charged with supplying natural gas
and ethane to plants in Trinidad in support of the Republic of
Trinidad and Tobago's policies and programs to develop downstream
energy sector projects.
National Energy Corporation of Trinidad and Tobago, Ltd. (NEC) is
a Trinidad and Tobago company that will assist project companies
in acquiring
facilities, equipment, materials and logistics required in the
ordinary course of constructing and operating developed projects.
Westlake Chemical Corporation (WLK) is a manufacturer and
supplier of petrochemicals, polymers and fabricated products with
headquarters in Houston, Texas. The company's range of products
includes: ethylene, polyethylene, styrene, propylene, caustic,
VCM, PVC and PVC pipe, windows and fence. For more information,
visit the company's Web site at http://www.westlakechemical.com .
The statements in this release relating to the proposed
petrochemical and polymers project, as well as any other matters
that are not historical facts, are forward-looking statements
that are subject to risks and uncertainties. Actual results could
differ materially, based on factors including, but not limited
to, changes in the world economy and the results of negotiations
of contracts needed to implement the proposed project. For more
detailed information about factors that could cause actual
results to differ materially, please refer to Westlake's Annual
Report on Form 10-K for the year ended December 31, 2005, which
was filed in February 2006.
Apr 19, 2006
(Chemweek's Business Daily/Access Intelligence via COMTEX) --
Trinidad has used its
gas reserves to become a major low-cost production source of
nitrogen fertilizer, methanol, and LNG over the past three
decades, analysts say.
"Capital costs
are high, though we believe the feedstock supply agreement
with NGC will be structured to afford it significantly lower
delivered costs for ethylene/PE than for any producer in
North America," says Jeffrey Zekauskas, analyst with
J.P. Morgan. "We believe additional regional capacity is
an incremental negative for other petrochemical producers in
North America." The Westlake project represents the
island's first ethylene facility, Zekauskas adds. "We
believe the ethane requirements are such that this project
precludes another ethylene producer adding capacity in
Trinidad." The project could include vinyls as well,
because of the availability of low-cost gas and a local brine
source for chlorine production, says Kevin McCarthy, analyst
at Banc of America Securities (New York).
Platts 2006/7/6
Trinidad and Tobago
concludes agreements for two projects
The government of Trinidad and Tobago has concluded agreements
for two projects to generate downstream industries in second
stage processing of petrochemicals in Trinidad and Tobago,
according to a statement by Energy Minister Lenny Saith to
Trinidad and Tobago's Parliament Wednesday.
One agreement covers development of a $1.5 billion
ethane-based ethylene/polyethylene complex by US-based Westlake
Chemical Corp,
and the T&T government, following the signing of a
project MOU
earlier this year. The complex, comprising an ethylene cracker
and a polyethylene facility, will be built on 250 acres at a site
to be identified.
Construction will be done in three phases with work scheduled to
start in the last quarter of 2007, Saith said, and production is
expected to start in 2010. The government said earlier it
expected to produce 570,000 mt/yr of ethylene and
ethylene derivatives.
The project will be financed by equity (30%), and debt (70%),
with the T&T government allowed the option of acquiring a
project equity stake of no less than 10% and up to 30%.
"We expect the ethylene complex to trigger the development
of a whole new range of downstream manufacturing activity in
medium and small enterprises for the production of plastic film,
bags, cups, appliance parts, pipes and related products,"
Saith said.
The other agreement covers development of a maleic anhydride
processing facility by Isegen (PTY) Ltd, a wholly-owned private company in
South Africa that manufactures chemicals for food additives,
Saith noted. Project capital is estimated at $64 million, and
construction was scheduled to begin in the third or fourth
quarter of 2008. Maleic anhydride is an intermediate chemical
used for food and beverage products, pharmaceuticals, resins, oil
additives,detergents and agricultural products.
Discussions for the project began in mid-2005 and an MOU to
establish commercial terms was signed in December 2005 between
Isegen and Trinidad-based Phoenix Park Gas Processors Limited
(PPGPL), Saith said. T&T is home to more than 25
petrochemical plants, with several major additional plants now at
an advanced stage of development, according to Saith.
2008/3/19 Westlake
Chemical
North American Pipe to Open New PVC Pipe Plant
Facility to be located in Yucca, AZ
North American Pipe Corporation, a subsidiary of Houston-based
Westlake Chemical Corporation, announced today that it will open
a new PVC pipe plant in Yucca, AZ.
The new plant is expected to begin operations by the 1st quarter
of 2009 and will annually produce approximately 120 million
pounds of PVC pipe in its initial phase. With an initial
investment of approximately $30 million the plant will add
approximately 75 new positions to the local economy.
The facility will produce PVC pipe for the water, sewer,
irrigation and related industrial and residential markets in
diameters ranging from 2 to 36 inches. When this plant is
completed, the company's annual PVC pipe capacity will be
increased to approximately 985 million pounds.
Mr. Mike Powell, North American Pipe's Vice President and General
Manager stated, "This new pipe plant is an important part of
our integrated vinyls strategy and will allow us to serve our
pipe customers from coast-to-coast with a wide array of pipe
solutions."
North American Pipe Corporation
North American Pipe is a wholly-owned subsidiary of Westlake
Chemical Corporation and currently operates eight (8) PVC pipe
plants throughout the United States. Last fall the company
announced it was beginning construction of a PVC pipe plant in
Calvert City, KY with a capacity of 55 million pounds per year of
large diameter pipe which is expected to be completed in the
second half of 2008.