Shell, BASF, Totalfina Will Build World's Largest Butadiene Extraction Unit

Shell Chemical Co. (Houston, TX), BASF Corp. (Mount Olive, NJ), and the Fina, Inc. (Plano, TX) unit of Totalfina Group have signed a nonbinding letter of intent to jointly build the world's largest butadiene extraction plant. Slated for start up by 2002, the unit will have capacity for 900 million lb/y of butadiene.

It will be located adjacent to Fina's 180,000 bbl/d Port Arthur, TX, refinery and an olefins cracker being built by BASF Fina, a 60-40 joint-venture of BASF and Fina. The $1 billion BASF Fina naphtha steam cracker will come on stream during the first quarter of 2001. It will be the world's largest single-train olefins plant with capacity for 1.83 billion lb/y ethylene and 1.9 billion lb/y propylene.

The BASF Fina cracker will provide an integrated source of feedstock for the new plant, which will also receive feedstock from Shell's Deer Park, TX, olefins complex. Deer Park has capacity for 2.1 billion lb/y ethylene and 1.1 billion lb/y propylene.

Shell, BASF and Fina plan to start up a 900 million lb/y butadiene unit, the world's largest, at Port Arthur, TX, in 2002. They hope to become low-cost producers through the unit's scale and by buying feedstock from Shell's Deer Park, TX, plant and a huge BASF Fina single-train steam cracker that will open in 2001. Pictured here is Fina's Port Arthur refinery, which will supply the new steam cracker.

Shell will own 60% of the joint-venture, BASF 24%, and Fina 16%. Shell, along with Huntsman Chemical and Texas Petrochemicals, is one of the three largest butadiene producers in the United States.

Current plans call for BASF to operate the facility. The companies expect the size of the unit will achieve economies of scale, especially given its proximity to integrated feedstocks and the East Texas market.

The partners also plan to build a butadiene pipeline system to transport feedstock from Deer Park to the new facility and Deer Park, and butadiene to major customers. Pending management, governmental, and regulatory approval, the three companies plan to sign a definitive agreement in early 2000.

For more information: Shell Chemical Co. PO Box 2463, Houston, TX 77252-2463. Phone: 713-241-6161. Fax: 713-241-4044.

Or: BASF Corp., 3000 Continental Dr. N., Mount Olive, NJ 07828-1234. Phone: 973-426-2600. Fax: 973-426-2610.

Or: Fina, Inc., Fina Plaza, Dallas, TX 75206. Phone: 214-750-2400. Fax: 214-750-2773.