LyondellBasell has contracted with TexStar MidStream Services LP for TexStar to install two natural gas liquids (NGL) fractionation units next to affiliate Equistar Chemicals LP’s Corpus Christi, TX, plant. The units will process NGLs from the Eagle Ford Shale.

The units will have capacity to process 63,000 b/d of NGLs into ethane, propane, butanes and natural gasoline. Equistar is to operate the fractionators for TexStar and will provide various utilities to the facility from its Corpus Christi olefins facility. Equistar will buy ethane and propane produced from the units under a long-term agreement and will use the NGLs as feedstock for its olefins unit to produce ethylene and propylene.

“The fractionation facilities will enable us to diversify and increase our NGL feedstock supply from nearby shale formations in the region in advance of our upcoming capacity expansion at Corpus Christi, and provides TexStar the benefit of our existing infrastructure at the site,” said LyondellBasell CEO Jim Gallogly. “This is another example of a project that can bring efficiency and value and be quickly implemented to take advantage of low-cost natural gas and NGLs in North America.”

The fractionators will be on a 40-acre site owned by Equistar and leased to TexStar. Construction is to begin this month with completion expected late this year.

LyondellBasell recently announced plans to expand ethylene capacity at Corpus Christi by 800 million pounds per year (see Shale Daily, March 19).