Sunoco to buy PP plant and propylene from Equistar.(Equistar Chemicals LP, polypropylene)

Chemical Market Reporter, March, 2003

EQUISTAR CHEMICALS LP and Sunoco Inc. have signed a definitive agreement under which Sunoco will buy 700 million pounds of propylene per year from Equistar over the next 15 years. In addition, Sunoco will purchase Equistar's 400 million-pound Bayport polypropylene plant in Pasadena, Tex.

Sunoco and Equistar will form a limited partnership involving Equistar's olefins facility in La Porte, Tex. The La Porte partnership will provide Sunoco with 500 million pounds of propylene per year, and Equistar will sell Sunoco an additional 200 million pounds per year under a long-term contract. The majority of Sunoco's propylene purchases will be priced on a cost-based formula that includes a fixed discount. Sunoco will pay $190 million, plus the value of the...

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