Oxychem says JV Texas cracker on track to elimate ethylene purchases
Occidental Chemical said Thursday its 50:50 joint venture cracker with Mexican PVC producer Mexichem will provide it with an ongoing source of ethylene. "The cracker is the first cracker constructed in the United States in 15 years," Oxychem President Rob Peterson said. He added that no future ethylene purchases are expected. The project was completed on schedule and on budget, according to Oxychem and Mexichem. The Ingleside Ethylene JV is a steam cracker adjacent to OxyChem's complex in Ingleside, along with pipeline and storage facilities in Markham. Construction began in second-quarter 2014. It was unclear when full rates will be reached this year but Mexichem said April 27 during its first-quarter earnings call that its estimate of a 70% run rate for 2017 still holds. The ethylene cracker was previously said to be in a production stabilization phase on February 27, the companies said in a joint statement. The steam cracker, which will be operated by Oxychem,...