Total to grow Texas petrochemicals footprint

Total aims to build an ethane steam cracker and polyethylene unit along the Gulf Coast with joint venture partners Borealis and Nova, the French major said on Monday.

Pending regulatory approval, the joint venture will begin operations in late 2017. Total hopes to reach the final investment decision on the polyethylene unit, which will produce some 625,000 tonnes per year, around the same time.

“We want to take advantage of the business-friendly environment to contribute to making American petrochemicals even greater. By joining forces with Borealis and Nova, we aim to create a major player in the US polyethylene market,” Total Chairman and CEO Patrick Pouyanné commented on the plans

In its press release, Total also said it would likely take a 50% interest in the new entity.

“After significant investments in US LNG and US shale gas in 2016, this almost two-billion-dollar investment signals our determination to strengthen our presence in the United States,” Pouyanné further added.

The USD 1.7-billion ethane steam cracker project, to be carried out by CB&I under an engineering, procurement and construction contract, is slated to come on stream in 2020 and produce at a rate of 1 million tonnes per year.

The unit will be built on a plot adjacent to the Total-owned, 202,000-bpd Port Arthur refinery. At peak activity, the work will create some 1,500 jobs.

The to-be-established joint venture will also include Total’s existing polyethylene plant, located in Bayport.