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LyondellBasell Wraps Up Corpus Christi Ethylene Expansion
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LyondellBasell Industries (LYB - Free Report) said that it has completed the 800 million pounds per year ethylene expansion project at its Corpus Christi, TX, facility. The project expands ethylene capacity at the site by 50% to 2.5 billion pounds per year from 1.7 billion pounds per year.
The conclusion of the expansion at Corpus Christi marks the completion of LyondellBasell’s multi-year plan to boost annual ethylene capacity in the U.S. by 2 billion pounds and is also another key milestone in the company’s organic profit-generating growth strategy.
The company, in 2014, completed an 800-million pound per year expansion at its La Porte, TX site. It also completed a 250-million pound per year expansion at its Channelview facility in 2015.
LyondellBasell has outperformed the Zacks categorized Chemicals-Diversified industry in the last three months, supported by better-than-expected earnings in the last reported quarter and its expansion initiatives. The company's shares gained 9.6% during the period while the industry saw a gain of 8.6%.
LyondellBasell continues to benefit from the favorable North American natural gas environment. It should also gain from its ethylene and polyethylene expansion moves. The company is executing its expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage.
LyondellBasell has invested around $2 billion in U.S. Gulf Coast expansion projects since 2012 and intends to invest an additional $3 billion in the region. The company has decided to build a high density polyethylene (HDPE) plant on the U.S. Gulf Coast. The facility, which will have an annual capacity of 1.1 billion pounds (500,000 metric tons), will be the first commercial plant to employ the company’s new proprietary Hyperzone PE technology. LyondellBasell has chosen its La Porte manufacturing complex as the site for the HDPE Plant. Construction is slated to start in early 2017 with start-up planned for 2019.
LyondellBasell is also advancing plans to build a world-scale plant on the U.S. Gulf Coast for producing propylene oxide (“PO”) and tertiary butyl alcohol (“TBA”), leveraging the shale gas boom in the region. The new PO/TBA facility, considered to be the largest of its kind, will be built in the Houston area.
LyondellBasell currently carries a Zacks Rank #2 (Buy).
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LyondellBasell Wraps Up Corpus Christi Ethylene Expansion
LyondellBasell Industries (LYB - Free Report) said that it has completed the 800 million pounds per year ethylene expansion project at its Corpus Christi, TX, facility. The project expands ethylene capacity at the site by 50% to 2.5 billion pounds per year from 1.7 billion pounds per year.
The conclusion of the expansion at Corpus Christi marks the completion of LyondellBasell’s multi-year plan to boost annual ethylene capacity in the U.S. by 2 billion pounds and is also another key milestone in the company’s organic profit-generating growth strategy.
The company, in 2014, completed an 800-million pound per year expansion at its La Porte, TX site. It also completed a 250-million pound per year expansion at its Channelview facility in 2015.
LyondellBasell has outperformed the Zacks categorized Chemicals-Diversified industry in the last three months, supported by better-than-expected earnings in the last reported quarter and its expansion initiatives. The company's shares gained 9.6% during the period while the industry saw a gain of 8.6%.
LyondellBasell continues to benefit from the favorable North American natural gas environment. It should also gain from its ethylene and polyethylene expansion moves. The company is executing its expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage.
LyondellBasell has invested around $2 billion in U.S. Gulf Coast expansion projects since 2012 and intends to invest an additional $3 billion in the region. The company has decided to build a high density polyethylene (HDPE) plant on the U.S. Gulf Coast. The facility, which will have an annual capacity of 1.1 billion pounds (500,000 metric tons), will be the first commercial plant to employ the company’s new proprietary Hyperzone PE technology. LyondellBasell has chosen its La Porte manufacturing complex as the site for the HDPE Plant. Construction is slated to start in early 2017 with start-up planned for 2019.
LyondellBasell is also advancing plans to build a world-scale plant on the U.S. Gulf Coast for producing propylene oxide (“PO”) and tertiary butyl alcohol (“TBA”), leveraging the shale gas boom in the region. The new PO/TBA facility, considered to be the largest of its kind, will be built in the Houston area.
LyondellBasell currently carries a Zacks Rank #2 (Buy).
LyondellBasell Industries Price
LyondellBasell Industries Price | LyondellBasell Industries Quote
Other Stocks to Consider
Other well-placed companies in the chemical space include BASF SE (BASFY - Free Report) , Methanex Corporation (MEOH - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF has an expected long-term growth of 7.7%.
Methanex has an expected long-term growth of 15%.
Kronos has an expected long-term growth of 5%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>