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May 2, 2014

TPC Group receives funding for third polyisobutylene unit

Mary Page Bailey

TPC Group Inc. (Houston; www.tpcgrp.com) has announced a significant milestone in its comprehensive expansion program to increase polyisobutylene capacity. In early 2013, TPC embarked on an expansion effort to both debottleneck existing capacity and build additional capacity.
 
TPC's Board of Directors recently approved funds for the next engineering phase to advance the design of a project to install a third production unit. This project is targeted to satisfy future demand growth, especially that resulting from anticipated changes in lubricating oil standards beginning in January 2017. These higher standards are driving increased use of highly reactive polyisobutylene, which TPC Group manufactures using its proprietary process. TPC is in discussions with its customers regarding definitive offtake commitments for the third production unit, and agreements for these commitments are anticipated by the end of this year.
 
In parallel with its third production unit engineering work, TPC continues to debottleneck its existing polyisobutylene capacity. Capacity has increased more than 15% since 2012 with additional debottlenecking underway in 2014.

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