BP Chemicals expands Grangemouth polyolefins
15 Jan 2000
BP Chemicals has announced two closely-linked projects that will increase polyolefins capacity at Grangemouth by 550000tpa to near 1million tpa before 2000.
The company is building a 300000tpa linear low density polyethylene (LLDPE) unit and through Appryl, its polypropylene (PP) joint venture with Elf Atochem a 250000tpa PP plant. BP says the projects are part of a five-year, £500million investment program it plans for the Grangemouth site.
Mike Buzzacott, BP Chemicals chief executive for polymers and olefins, says the group will also 'progressively convert' an existing 160000tpa LLDPE unit at Grangemouth to high-density PE production, to ease the market impact of the new LLDPE unit. The new LLDPE and PP units will both be designed and built by a construction alliance between BP, Appryl, Technip, and AMEC Process and Energy.
Buzzacott says the 'shared services' approach to building and operating the new plants will reduce initial capital expenditures by some 20 per cent. The total investment for the two new units, the conversion of the existing LLDPE unit, and the logistics facility will be 'considerably under £200 million,' Buzzacott says. The polyolefins units and logistics facility will together create 100 permanent jobs and 1200 construction jobs at peak.
The new LLDPE unit, which will be expandable to 400000tpa, will have a single reactor based on BP's gas-phase PE technology, Innovene. It will use a direct injection catalyst system and BP's Enhanced High Productivity technology. The PP plant, expandable to 300000tpa, will initially produce homopolymers but 'after several years' may incorporate Appryl's new technology for producing block copolymers (propylene- ethylene), according to Appryl managing director Bernard Roche.
Construction on the projects, which have both recently received board approval, will start immediately. BP first announced the LLDPE project in January and Appryl owned 51 per cent by Atochem and 49 per cent by BP has been discussing the PP project since late 1996.
Buzzacott says BP is still in discussions with ICI to increase its 20 per cent stake in the Wilton cracker (see PEApril, p7). He says BP is 'unlikely' to increase its stake to 100 per cent, and that discussions 'should be resolved this year.'
Discussions with Hoechst over a HDPE joint venture 'will have to be resolved over the next three to four months,' Buzzacott says.
