HOUSTON (June 12, 4:05 p.m. EDT) — ExxonMobil Chemical Co. has struck a deal with Chevron Phillips Chemical Co. LP (Booth N7907) that will allow Chevron Phillips to license loop-slurry polyethylene production technology developed by both firms.
The agreement also gives ExxonMobil additional rights to use Chevron Phillips' loop-slurry technology to produce PE at its plant in Baton Rouge, La. ExxonMobil spokesman Vin Hoey declined to comment on that aspect of the deal, but said ExxonMobil already has been using CP technology in Baton Rouge for some time.
In a May 22 news release, officials said the technology involved delivers high reactor throughput while minimizing capital and operating costs. Both Houston-based firms are major suppliers of high density PE, while ExxonMobil is a significant player in low and linear low density PE markets as well.
The agreement gives CP access to licensing ExxonMobil's bimodal HDPE technology into film and pipe markets, according to Faisal Syed, an analyst with Chemical Market Resources Inc. in Houston.
New HDPE demand could come from regions where pipe use is on the upswing, Syed added. Those areas include Asia, where construction is rising, and Europe, where more HDPE pipe could be needed for gas distribution.
Syed ranks CP as the world's largest licensor of HDPE technology. He estimates that one-third of global HDPE is made under CP licenses.
ExxonMobil also recently granted a metallocene PE production license to Sumitomo Chemical Co. Ltd. of Tokyo. Sumitomo is expected to use the license to produce metallocene PE at a plant in Chiba, Japan.
At NPE 2003, ExxonMobil is expected to announce an advancement using its Exxpol-brand metallocene technology to develop new specialty elastomers.