BASF Agrees to Sell its Minority Ownership Interest in Geismar, LA Ethane Cracker and Associated Facilities
23 June 2007 - 12:34AM
PR Newswire (US)
FLORHAM PARK, N.J., June 22 /PRNewswire-FirstCall/ -- BASF
Corporation today announced that it has agreed to sell its minority
ownership interest in a 610,000 tons per year ethane cracker and
associated pipeline and storage facilities located in Geismar,
Louisiana. Subject to regulatory approvals, Williams Olefins,
L.L.C., will purchase BASF's ownership interest in the cracker and
PetroLogistics, LLC, will purchase BASF's interest in the
associated pipeline and storage facilities. Terms of the agreements
were not disclosed. Closing is expected to take place in July. The
ethane cracker is jointly owned by GE Petrochemicals, Williams
Olefins, L.L.C. and BASF, and operated by Williams Olefins, L.L.C.
The pipeline and storage facilities are jointly owned by GE
Petrochemicals, PetroLogistics, LLC, and BASF, and operated by
PetroLogistics. BASF purchased its ownership stake in the cracker
and associated facilities in 1970 as part of its acquisition of
Wyandotte Chemicals. Each owner supplies raw materials to the
cracker and independently markets its share of production from the
cracker. "BASF's strategy to more closely balance olefins supply
capability with captive demand is well served by our world-scale
joint venture naphtha steam cracker in Port Arthur, Texas, reducing
the strategic importance of the Geismar ethane cracker to BASF,"
said Peter Cella, NAFTA Group Vice President, Petrochemicals. "We
believe our investment in the Port Arthur cracker and the latest
technology deployed at this facility will provide BASF with a
sustainable first quartile competitive position in the
marketplace." BASF - The Chemical Company. We don't make a lot of
the products you buy. We make a lot of the products you buy
better.(R) BASF Corporation, headquartered in New Jersey, is the
North American affiliate of BASF AG, Ludwigshafen, Germany. BASF
employs more than 15,500 in North America and had sales of
approximately $14.3 billion in 2006. For more information about
BASF's North American operations, or to sign up to receive news
releases by e-mail, visit http://www.basf.com/usa. BASF is the
world's leading chemical company: The Chemical Company. Its
portfolio ranges from chemicals, plastics, performance products,
agricultural products and fine chemicals to crude oil and natural
gas. As a reliable partner to virtually all industries, BASF's
high-value products and intelligent system solutions help its
customers to be more successful. BASF develops new technologies and
uses them to meet the challenges of the future and open up
additional market opportunities. It combines economic success with
environmental protection and social responsibility, thus
contributing to a better future. BASF has approximately 95,000
employees and posted sales of euro 52.6 billion (approximately
$66.1 billion) in 2006. Further information on BASF is available on
the Internet at http://www.basf.com/. Slogan is a registered
trademark of BASF. DATASOURCE: BASF Corporation CONTACT: Kathy
Dennis of BASF Corporation, +1-973-245-6288, Web site:
http://www.basf.com/ http://www.basf.com/usa
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