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USA: Ethylene Supply

Oxychem and Mexichem Announce Startup of Ethylene Cracker

| Editor: Alexander Stark

Oxychem, based in Dallas, Texas, manufactures and markets basic chemicals.
Oxychem, based in Dallas, Texas, manufactures and markets basic chemicals. (Source: Oxychem)

Ingleside Ethylene, the 50/50 joint venture between Oxychem and Mexichem, announced that its ethylene cracker in Ingleside has begun operations on schedule and on budget.

Ingleside/USA — The ethylene cracker, which is currently in a production stabilization phase, will be operated by Oxychem. The plant has the capacity to produce 1.2 billion pounds (550,000 cubic meters) of ethylene per year and provide an ongoing source of ethylene for manufacturing vinyl chloride monomer (VCM), which Mexichem will use to produce polyvinyl chloride (PVC resin) and PVC piping systems. The companies have a 20-year supply agreement.

“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 capitalize 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,” said Robert Peterson, President, Oxychem.

The project also includes a pipeline and storage facility at Markham, Texas. Total investment in the project was approximately $ 1.5 billion. Construction began in the second quarter of 2014. In December 2013, Ingleside Ethylene, LLC awarded CB&I the engineering and construction contract to build the cracker.

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