This propylene fractionation business includes a 66.66% equity interest in a polymer grade propylene fractionation facility in Mont Belvieu, Texas; a 50 percent equity interest in a polymer grade propylene export terminal located on the Houston Ship Channel; and equity interests in four pipelines which distribute product to customers and to the export terminal.
The fractionation plant has the capacity to produce approximately 3 billion pounds per year or 45,000 barrels per day of polymer grade propylene.
As an industry, approximately one-half of polymer grade propylene production is used to manufacture polypropylene, which is used to manufacture molded plastics for house wares, appliances, automobiles, and medical products. It is also used to produce packaging materials and fibers for carpet and upholstery.
The completion of this transaction is subject to the execution of a definitive agreement approved by the board of directors of the respective parties and the receipt of regulatory approvals. The parties expect the transaction to be completed in approximately 90 days.
D-K Diamond Koch L.L.C., Diamond-Koch L.P. and Diamond-Koch III L.P. are jointly owned by affiliates of Ultramar Diamond Shamrock Corporation and Koch Industries Inc.