Sasol, INEOS approve construction of new Texas polyethylene facility

Sasol Chemicals North America and INEOS Olefins & Polymers announced Monday that they have reached final investment decision to form a joint venture to build a high-density polyethylene (HDPE) plant in La Porte, Texas.

The 50/50 joint venture will produce 470,000 tpy of bimodal HDPE using Innovene S process technology licensed from INEOS Technologies. 

The ethylene required for the production of the HDPE will be supplied by Sasol and INEOS in proportion to their respective ownership positions.

"This project will expand Sasol's presence in the global chemical market and complement our North American growth strategy," said Fleetwood Grobler, Sasol's group executive for global chemicals. "Its location offers several benefits, including access to US Gulf Coast infrastructure and proximity to our current and proposed ethane cracker and derivatives complex in Southwest Louisiana."

INEOS will operate the HDPE plant at its Battleground manufacturing complex in La Porte. Plant start-up is expected in the 2016 calendar year.

"This investment will allow INEOS to meet our customer's needs for additional bimodal products," said Dennis Seith, CEO of INEOS Olefins & Polymers. "It also supports INEOS's strategy to invest and to capture synergies on our major sites."

The definitive agreements are in the process of being finalized, and all relevant permits have been obtained. Because the plant will be debt financed, the investment decision is conditional on achieving financial close.

Sasol and INEOS announced their intention to form this joint venture in July 2013.