Thai operator secures feedstock supply for Louisiana cracker restart

Indorama Ventures Olefins LLC (IVO), a subsidiary of Thailand’s Indorama Ventures PCL (IVP), Bangkok, has entered a long-term supply agreement with Targa Resources Corp., Houston, for delivery of all ethane and propane feedstock supplies IVL will require for its renovation and restart of a dormant ethane cracker in Westlake, La., just west of Lake Charles in Calcasieu Parish (OGJ Online, Sept. 25, 2016).

Alongside supplying all ethane and propane gas feedstock for the cracker, Targa also will provide storage services for the gases locally at Lake Charles, IVP said.

Targa’s Hackberry NGL storage site in Lake Charles includes 12 wells with a gross storage capacity of 20 million bbl, according to Targa’s web site.

Neither IVP nor Targa disclosed details regarding the value or specific duration of the multiyear supply contract.

Currently in the process of executing the plant’s refurbishment, IVP said it remains on schedule to commission the revamped complex in fourth-quarter 2017.

To be jointly owned by IVP (76%) and Singapore-based Indorama Corp. (24%), the refurbished cracker will be able to process both ethane and propane feedstock from US shale to produce about 420,000 tonnes/year (tpy) of ethylene and 20,000 tpy of propylene, according to IVP’s latest project update.

Earlier in the year, the Louisiana Department of Environmental Quality approved IVP’s prevention of significant deterioration and Part 70 air-operating permits, allowing the company to move forward with its proposal to modify, restart, and operate the formerly Equistar Chemicals LP-owned ethylene and propylene manufacturing complex, which was shuttered in February 2001 (OGJ Online, Aug. 31, 2016).

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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