Texaco completes sale of PO/MTBE business to Huntsman Specialty Chemicals Corporation.WHITE PLAINS, N.Y.--(BUSINESS WIRE)--March 21, 1997--Texaco Inc. announced today that it has completed the sale of its propylene propylene /pro·pyl·ene/ (pro´pi-len) a gaseous hydrocarbon, CH3CHdbondCH2. propylene glycol a colorless viscous liquid used as a humectant and solvent in pharmaceutical preparations. oxide/methyl tertiary butyl butyl /bu·tyl/ (bu´t'l) a hydrocarbon radical, C4H9. bu·tyl n. A hydrocarbon radical, C4H9. butyl a hydrocarbon radical, C4H9. ether (PO/MTBE) business to Huntsman Specialty Chemicals Corporation, a subsidiary of Huntsman Corporation, for approximately $600 million. The PO/MTBE manufacturing site, located adjacent to Huntsman facilities in Port Neches, Texas Port Neches is a city in Jefferson County, Texas, United States. The population was 13,601 at the 2000 census. History The area known as Port Neches was inhabited by Atakapa Indians, a tribe of coastal dwelling Indians. , has a production capacity of approximately 400 million pounds per year of propylene oxide propylene oxide a gas used to disinfect animal feeds. and approximately 15,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of MTBE MTBE Methyl-tert-butyl-ether Surgery An aliphatic ether that rapidly dissolves cholesterol stones in vivo, introduced under local anesthesia via a percutaneous transhepatic cholecystectomy catheter, as a non-invasive method for treating gallstones; after injection, . Huntsman has operated the plant for Texaco since it began operations in August 1994. In addition to the PO/MTBE business, Huntsman today acquired Texaco's exclusive, state-of-the art PO/MTBE manufacturing technology, including the right to license the technology around the world. Texaco and Huntsman also have agreed to a long-term MTBE supply agreement to ensure Texaco a stable source of the gasoline additive. Commenting on the sale, Texaco Chairman and Chief Executive Officer Peter I. Bijur said, "Today's closing marks the final step in completing the sale of Texaco's chemical business. This will allow Texaco to focus on its exploration, production, marketing and related core businesses." Propylene oxide is a highly versatile petrochemical used in the home furnishings, construction, appliance, packaging, transportation and surfactants industries. Among its many product applications are foams for furniture and automobile seats; pleasure boats; fiberglass tubs and showers; aircraft deicing fluids; dishwasher detergents; and industrial solvents. MTBE is a gasoline additive and oxygenate oxygenate /ox·y·gen·ate/ (-je-nat) to saturate with oxygen. ox·y·gen·ate or ox·y·gen·ize v. To treat, combine, or infuse with oxygen. that increases octane and causes gasoline to burn more cleanly. Many areas of the country use MTBE, particularly in the winter months, to help meet requirements of the U.S. Clean Air Act. Additional Texaco information is available on the World Wide Web at: http://www.texaco.com CONTACT: Cynthia B. Michener 914-253-4743 |
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