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Westlake Chemical expands ethylene capacity

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Hydrocarbon Engineering,

Westlake Chemical Partners LP, a Westlake company, announced that it has approved plans to expand ethylene capacity at the Calvert City, Kentucky facility owned by its affiliate, Westlake Chemical OpCo LP (OpCo). This expansion will add 70 million lbs/y of stated ethylene capacity to the Calvert City facility during the first half of 2017.

"We are pleased about the ethylene expansion at the Calvert City, Kentucky facility. This expansion, which combined with incremental capacity increases will total 100 million lbs/y capacity, is in addition to the 250 million lb ethylene expansion at the Petro 1 facility in Lake Charles, Louisiana, which is expected to begin in 2Q16. The additional production of ethylene at both facilities will be sold under the terms of the long term, fixed margin ethylene sales agreement in which 95% of OpCo's production is sold to our sponsor, Westlake Chemical Corporation, at a price designed to generate a margin of US$0.10/lb. We believe the incremental earnings from these expansions will allow us to continue to grow our distributions at a low double digit rate," said Albert Chao, President and Chief Executive Officer.

Adapted from press release by Francesca Brindle

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