Corpus Christi liquid natural gas deal

CORPUS CHRISTI – Houston-based LyondellBassell has worked out a deal with San Antonio-based TexStar Midstream Services LP that will give its Corpus Christi plant, operated by subsidiary Equistar Chemicals LP, access to 63,000 barrels per day of ethane and propane.

The deal calls for TexStar to build and for Equistar to operate two fractionation units, used to separate the byproducts of the liquid natural gas refining process, including ethane, propane and butane. The byproducts, called natural gas liquids, are used in a variety of applications.

The units will be built on a 40-acre lot adjacent to the Equistar plant, which will reap the benefit by purchasing the ethane and propane produced by the fractionation units for integration into the plant’s expanded capacity to produce ethylene, a key compound needed in making plastics.

The company in March announced plans to add another 800 million pounds of annual ethylene production capacity at the Corpus Christi plant.