Sasol, Ineos to partner in new Texas polyethylene plant

A partnership between units of Sasol Ltd. and Ineos Europe AG has decided to situate a new high-density polyethlyne (HPDE) plant in La Porte, Tex.

Sasol Chemicals (USA) LLC and Ineos Olefins & Polymers USA agreed to form a joint venture and proceed with the project last year, but had not decided on a location.

The 50-50 partnership plans to produce almost one billion pounds per year of bimodal HDPE. Ethylene required to produce HDPE would be supplied by each partner for the La Porte plant, which is to be built at the Battleground Manufacturing Complex operated by Ineos.

“This project will expand Sasol’s presence in the global chemical market and complement our North American growth strategy,” Fleetwood Grobler, Sasol’s group executive for global chemicals, said in a statement. “Its location offers several benefits, including access to U.S. Gulf Coast infrastructure and proximity to our current and proposed ethane cracker and derivatives complex in Southwest Louisiana.”

The cost of the La Porte facility hasn’t been announced. The plant would produce HDPE using Innovene S, a process technology licensed by Ineos Technologies.

“This investment will allow Ineos to meet our customers’ needs for additional bimodal products,” said Ineos Olefins & Polymers CEO Dennis Seith. “It also supports Ineos’ strategy to invest and to capture synergies on our major sites.”

Production is expected to begin in 2016.