Equity Investments

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments [Text Block]

7.     Equity Investments

During the third quarter of 2020, we executed a joint venture agreement with the Liaoning Bora Enterprise Group (“Bora”) to form the Bora LyondellBasell Petrochemical Co. Ltd (“BLYB”). We contributed $472 million in cash for a 50% equity interest in the joint venture. This joint venture is included in our Olefins and Polyolefins–Europe, Asia, International segment. Production began at the BLYB complex during the third quarter of 2020.

BLYB’s manufacturing facility located in Panjin, China includes a 1.1 million tons per annum flexible naphtha / LPG cracker and associated polyethylene production capacity of 0.8 million tons per annum and 0.6 million tons per annum of polypropylene. The materials produced at the facility serve various industries in China, including packaging, transportation, building and construction, and healthcare and hygiene. The complex utilizes LyondellBasell’s Spheripol and Spherizone polypropylene technologies along with the company’s Hostalen ACP polyethylene technology. We will market all the polypropylene and high-density polyethylene produced.

Additionally, on October 1, 2020 we signed a definitive agreement with Sasol Chemicals (USA) LLC (“Sasol”) to form the Louisiana Integrated PolyEthylene JV LLC joint venture (the “Louisiana Joint Venture”). The transaction is expected to close by the end of 2020, subject to customary regulatory approvals and approval by Sasol shareholders. Following closing and through the creation of this joint venture, we will acquire 50% of the 1.5 million ton ethane cracker, 0.9 million ton low and linear-low density polyethylene plants and associated infrastructure located in Lake Charles, Louisiana, for a total cash consideration of $2 billion subject to customary adjustments for working capital and other items. Following closing, the joint venture will be included within our Olefins and Polyolefins–Americas segment. Under the terms of the transaction agreements, each joint venture partner will provide pro-rata shares of ethane feedstocks and will off-take pro-rata shares of cracker and polyethylene products. We will operate the Louisiana Joint Venture assets and market all the polyethylene off-take through our global sales team.