LyondellBasell plans to cut MTBE output by two-thirds
Firm is switching some capacity to ETBE biofuel
Tom Stundza -- Purchasing, 6/24/2009 12:38:45 PM
LyondellBasell will reduce production of methyl-tertiary butyl-ether (MTBE) by nearly two-thirds once it begins making bio-ethyl tertiary butyl ether (ETBE) at its Channelview complex in Texas in the fourth quarter, ICISnews.com has reported.
MTBE capacity at the Channelview complex is about 42,000 barrelsl/day but following the switch to ETBE, only about 12,000-15,000 bbl/day of MTBE will be made at the site.
A company spokesman says the Netherlands-based company still would produce the MTBE gasoline additive at Channelview but declined to confirm reports on the planned volume.
ICIS cites traders who anticipate the MTBE production cutbacks will significantly decrease the availability of MTBE on the spot market. "This will definitely make the (MBTE) market tighter," says a US Gulf coast-based trader.
The U.S. has largely phased out MTBE in gasoline, favoring ethanol as an oxygenate for gasoline. However, MTBE is still used as a gasoline additive in the rest of the world and there are substantial export sales for MTBE from such U.S. producers as LyondellBasell, Texas Petrochemicals and Huntsman.
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