LyondellBasell Approves Houston Propylene Expansion Project

LyondellBasell announced an investment to expand propylene production capacity at its Channelview Complex near Houston.

The unit is expected to break ground in the third quarter of 2025 and be online by the end of 2028, with an annual production capacity of approximately 400,000 metric tons of propylene, employ 750 people at peak construction and add 25 permanent jobs.

"As we grow and upgrade LyondellBasell's core business lines, this capacity expansion enhances our ability to meet growing customer demand and improve self-sufficiency," said Kim Foley, executive vice president of LyondellBasell's global olefins and polyolefins and refining businesses. "In addition, it reduces our exposure to market volatility and enables LyondellBasell to provide consistent returns to shareholders."

The new metathesis unit converts ethylene into propylene, which is used to produce polypropylene and propylene oxide, which are important building blocks for materials used in everyday applications. End-use related product lines include food packaging, medical devices, automotive parts, aircraft de-icing fluids, building insulation, home mats and telecommunications equipment.