Issue Date: December 14, 2009
Eastman Drops Gasification Project
Eastman Chemical is discontinuing its industrial gasification project in Beaumont, Texas. The company cites factors including high capital costs, the reduced spread between natural gas and oil or petroleum coke prices, and uncertainty regarding U.S. energy policy. The $1.6 billion project, announced in July 2007, was going to gasify petroleum coke to make ammonia and methanol. Eastman would then convert methanol into propylene and ethylene oxide. The firm will take a pretax asset impairment charge of between $150 million and $180 million in the fourth quarter.
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