Ingleside Ethylene's ethylene cracker in Texas begins operations
Ingleside Ethylene has revealed that its ethylene cracker at OxyChem’s complex has started commercial operations within the stipulated timeframe and budget.
Ingleside Ethylenethe is 50:50 joint venture (JV) between Occidental Chemical (OxyChem), a subsidiary of Occidental Petroleum, and Mexichem .
OxyChem’s complex is located at Ingleside, Texas, US. Currently, the ethylene cracker is in a production stabilisation phase.
OxyChem will be responsible for the operations of the cracker that is expected to produce 1.2 billion pounds (550,000mt) of ethylene annually.
The ethylyne will be used by OxyChem for producing vinyl chloride monomer (VCM), which Mexichem will use to produce polyvinyl chloride (PVC resin) and PVC piping systems.
The companies have entered a 20-year supply agreement.
OxyChem president Robert Peterson said: “We are pleased to announce the safe startup of the ethylene cracker at our plant in Ingleside.
“This is a significant milestone for both OxyChem and Mexichem, enabling us to capitalise on the advantages that shale gas development presents for the chemical industry.
“It also helps our companies better compete globally in our respective markets, and gives us an inherent advantage to manage the cost of ethylene.”
Construction of the cracker began in the second quarter of 2014, with an investment of nearly $1.5bn.
Mexichem chief executive officer Antonio Carrillo said: “This is a great example of the excellent long-term partnership that Mexichem has with OxyChem, and we are proud that the ethylene plant was constructed safely, on time and on budget.
“The facility’s cutting-edge technology makes it one of the most modern in the world. For Mexichem, the ethylene plant is a vital part of our global strategy to become a vertically integrated specialty chemicals company with a focus on high-end products.”
Mexichem is a chemical and petrochemical that manufactures and supplies plastic piping products to infrastructure, housing, datacom and water management sectors.