INEOS plans world-scale linear alpha olefins plant for US Gulf Coast

INEOS plans to build a new 350,000 tpy linear alpha olefins plant in the US Gulf Coast region, the company announced on Thursday.

The project is targeted for completion by the end of 2016. Beyond then, it could be expanded by an additional 50%, said Bob Learman, CEO of INEOS Oligomers.

Ultimately, the capacity could reach over 500,000 tpy, he added.

"INEOS Group already has a significant footprint on the GUlf so we have ready access to key resources," said Learman. "We have been working on this project for the past year and it is now ready to scale up for a new phase of activity."

The company’s focus on polyethylene comonomers and polyalphaolefins and its access to cheaper ethylene makes the project a “very attractive opportunity”, said Joe Walton, business director at INEOS Oligomers.

INEOS is also considering an expansion at its Joffre facility in Alberta, Canada, where it is working to raise linear alpha olefins capacity by 10%.

That project is expected to be completed by the end of the 2014 first quarter.

“The global demand for lubricants has been impacted by the current difficult conditions in both the European and Asian automotive sectors” said Walton.  “Despite this backdrop, our [poly alpha olefins] business has been quite resilient.  It will continue to benefit from lubricant reformulation activity to attain better fuel economy and to lower carbon emissions. 

"INEOS Oligomers is the world’s largest merchant supplier of PAO and our investment plans will ensure we maintain this positio," he added.

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