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Westlake considers cracker in Trinidad & Tobago

April 24, 2006 | A version of this story appeared in Volume 84, Issue 17

Houston-based Westlake Chemical Corp. has signed a memorandum of understanding with the government of Trinidad & Tobago to develop an ethylene complex. Westlake will evaluate the project with the National Gas Co. of Trinidad & Tobago and the National Energy Corp. of Trinidad & Tobago. The Trinidad & Tobago government intends to take a minority stake in the project. Plans call for an ethylene cracker that would convert 37,500 barrels per day of ethane into 570,000 metric tons per year of ethylene. This ethylene, in turn, would feed capacity for polyethylene and other derivatives. The project is estimated to cost about $1.5 billion and is forecast to start up in late 2010. The project could subsequently be expanded as more ethane becomes available. Leveraging its low-cost natural gas, Trinidad & Tobago has attracted huge investments in methane derivatives such as fertilizers and methanol over the past decade. Over the same period, companies have been interested in building ethane-based ethylene capacity there but haven't moved forward with a project.

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