INEOS has announced an agreement with LyondellBasell to buy its Ethylene Oxide and Derivatives business including the Bayport Underwood site, Texas.

The acquisition encompasses the 420 kt Ethylene Oxide plant, the 375 kt Ethylene Glycols plant and the 165kt Glycol Ethers plant together with all associated third-party business on the site, for a total of $700 million.

The first site acquired by INEOS in 1998 was the Ethylene Oxide facility at Zwijndrecht Belgium. As a key raw material, this Ethylene Oxide facility became the foundation from which INEOS has grown its chemicals business.

Tobias Hannemann, CEO of INEOS Oxide, commented, “We are pleased to announce this strategic acquisition. INEOS is a leading producer in Europe and this significant step expands its Ethylene Oxide & Derivatives business into the US, which is the world’s largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana.

There is free land on the Bayport Underwood site for INEOS’ growth aspirations and it is an ideal location to develop our third-party business supporting customers to co-locate and integrate into an existing Ethylene Oxide & Derivatives platform. We look forward to welcoming the business, site and team of very professional and highly motivated people into the global INEOS group.”

Target completion is the second quarter of 2024, contingent upon receiving regulatory and other third-party approvals, at which point INEOS will acquire a site with world class assets, leading production facilities and a successful and experienced team.

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