LyondellBasell to Build 400,000 Ton Per Year Propylene Facility in Texas by 2028

LyondellBasell has announced plans to construct a new 400,000 ton/year propylene facility at its Channelview plant in Texas. The construction is set to begin in the third quarter of 2025, with production expected to start by the end of 2028.

According to S&P Global Commodity Insights, LyondellBasell currently operates two existing propylene splitters at the Channelview facility, with a combined annual capacity of 470,000 tons. Additionally, the company boasts a total annual propylene capacity of 1.9 million tons across its facilities in Texas, Louisiana, Iowa, and Illinois, utilizing steam cracking technology. LyondellBasell also has a polypropylene capacity of 1.5 million tons in the U.S.

The company’s portfolio of propylene derivatives in the U.S. includes propylene oxide, propylene glycol, and butanediol. Industry insiders indicate that this capacity expansion aligns with LyondellBasell’s core business development, allowing the company to better meet the increasing demand from customers and enhance its self-sufficiency in propylene production.