Texaco sells PO/MTBE business to Huntsman Corporation.WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Dec. 24--Texaco Inc. today announced that Huntsman Corporation will purchase Texaco's 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 for approximately $600 million. The PO/MTBE manufacturing site is located adjacent to Huntsman facilities at 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. . Huntsman has operated the plant for Texaco since it began operations in August, 1994. It has a production capacity of approximately 400 million pounds per year of propylene oxide 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, . Texaco Chairman and Chief Executive Officer Peter I. Bijur commented, "This is the last major step in the sale of Texaco's chemical business and is in keeping with our plans to focus on our core oil and gas business. Huntsman Corporation will continue to be both a customer and a supplier to Texaco." Huntsman Corporation Chairman and Chief Executive Officer Jon M. Huntsman commented, "This acquisition will greatly enhance our product integration and diversification by allowing us to add propylene oxide to our list of core products. It also will make us the nation's second-largest producer of MTBE, with capacity of more than 27,000 barrels per day." 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 winter months, to help meet the requirements of the U.S. Clean Air Act. As part of today's agreement, Huntsman also will acquire Texaco's exclusive, state-of-the-art PO/MTBE manufacturing technology, including the right to license the technology around the world. Huntsman is a major consumer of propylene oxide for the production of its specialty amines amines (  mēnz´),n.pl organic compounds that contain nitrogen. and surfactants. Texaco and Huntsman have negotiated a long-term MTBE supply agreement. It is anticipated that closing will take place in the first quarter 1997. CONTACT: Texaco Paul Weeditz 713-752-6475 Huntsman Don Olsen 801-584-5700 |
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