Industry News

Lyondell Announces Capital Budget for 2005

Published on 2005-01-10. Author : SpecialChem

HOUSTON -- Lyondell Chemical Company (NYSE: LYO) announced the 2005 capital expenditure budget for the Lyondell enterprise, including Equistar Chemicals, Millennium Chemicals and LYONDELL-CITGO Refining (LCR).

Components of the 2005 capital budget, estimated 2004 capital expenditures, and estimated 2004 depreciation and amortization are shown below by entity.

Millions of dollars
Intermediate Chemicals & Derivatives
Equistar Chemicals
Millennium Chemicals
LYONDELL- Consolidated
LYONDELL-CITGO Refining (100%)
2005 Capital Budget
$80 (a)
2004 Estimated Capital Expenditures
$62 (a)
$229 (b)
2004 Estimated Depreciation and Amortization (D&A) (c)
Lyondell's Current Ownership
(a) Includes contributions to U.S. and European PO Joint Ventures
(b) Pro forma
(c) Data for the nine months ended September 30, 2004 annualized

Projected 2005 capital spending for base asset support and plant efficiency projects totals approximately $290 million across the Lyondell enterprise, including LCR on a 100-percent basis. The balance of the budget will fund projects related to environmental and regulatory requirements, including emission reductions, low-sulfur fuels and MTBE alternatives.

Lyondell's share of LCR's capital spending (58.75 percent or $110 million) will be accounted for as a capital contribution. LCR's spending will increase over 2004, primarily due to low-sulfur gasoline and diesel projects which are driven by regulatory changes.

Lyondell's 2005 capital plan does not include any major plant expansions.

Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a major global manufacturer of basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. It also is a significant producer of gasoline blending components. The company has a 58.75 percent interest in LYONDELL- CITGO Refining LP, a refiner of heavy, high-sulfur crude oil. Lyondell is a global company operating on five continents and employs approximately 10,000 people worldwide.

Source: Lyondell Chemical Company

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