SBE Chemical Partners I LLC (the company), the owner of 'Raven', an on-purpose ethylene-to-butene-1 processing facility to be located in Baytown, Texas, have announced the execution of definitive agreements for all capital commitments, subject to certain conditions, necessary for the construction of the facility.
Additionally, the company has entered into an engineering, procurement, and construction (EPC) contract for the project. Engineering and site preparation activities have begun, and Raven's commercial operations are currently expected to commence in 2018.
Raven has secured long term fee-based offtake agreements with commitments from multiple butene-1 buyers for most of its capacity. The company believes that there is ample room on the Raven site for expansion, and discussions with current and potential customers are underway for additional offtake.
Butene-1 is a linear alpha olefin (LAO) used in the manufacture of a variety of base chemical products including as a co-monomer for production of polyethylene (LLDPE and HDPE). Most LAO products are produced by processes that result in a range of products, including butene-1. However, the Raven facility is designed for dedicated on-purpose butene-1 production from the processing of ethylene (an abundantly available derivative of natural gas) to meet anticipated growth in the polyethylene and associated markets.
Raven was developed by Evonik Industries (Evonik) and Quanta Capital Solutions, Inc. (Quanta Capital). Stone Bridge Energy Partners also acted as a developer of the project. Quanta Capital and funds managed and/or advised by Partners Group are partnering as co-lead financial sponsors for the project.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/28112016/raven-announces-capital-commitments-and-epc-contract/