Prices Force Delay in New Chemical Plant Along Texas Gulf Coast

BASF

Plans by German chemical giant BASF SE to build a massive plant along the Gulf Coast in Texas have been temporarily shelved because of volatile prices.

It was nearly 15 months ago when the company announced plans for the largest single-plant investment with a planned annual production of 475,000 metric tons of propylene. But now the company says “volatile commodity prices” force it to refrain from building the plant. Word of the delay came after BASF and Norway-based Yara International ASA broke ground on a $600 million ammonia plant in Freeport.

The postponement also came as other similar plants are being constructed along the Texas Gulf Coast and construction is underway by Royal Dutch Shell to put up a multimillion-dollar polyethylene plant in the Pittsburgh region. The Royal Dutch Shell plan will be the first major U.S. project to go up outside the Gulf Coast region in 20 years.