Huntsman buys Texaco's last chemicals facility

Abstract

Texaco will make its exit from chemicals production with the sale of its Port Neches, Texas, petrochemical derivatives complex to Huntsman Corp. Huntsman will pay Texaco $600 million for the complex, which Huntsman has managed since it came on-line in August 1994. The transaction is expected to be completed during the first quarter of 1997. The site, which has 400 million lb per year of propylene oxide capacity and more than 15,000 barrels per day of methyl tert -butyl ether (MTBE) capacity, was not originally included in Huntsman's purchase of Texaco's other chemical businesses in April 1994. 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, says Peter I. Bijur, Texaco's chairman and chief executive officer. Texaco's other chemical businesses, purchased by Huntsman for $850 million, included ethylene, propylene, ethylene glycol, and derivative specialty chemicals production ...