Shell, BASF, Atofina Alliance Building $200-Mil Chemical Plant

HOUSTON-Shell Oil Co. says it is collaborating with two other companies – BASF Corporation and Atofina Petrochemicals Inc. – to build a $200-million chemical plant in Port Arthur, TX.

According to Shell, the three companies are in the final stages of negotiations. Shell will own about 60% of the Sabina Petrochemicals venture; BASF, 24%; and Atofina, 16%.BASF Corp., based in Mount Olive, NJ, is the North American subsidiary of German chemical giant BASF AG. Atofina is a subsidiary of TotalFinaElf, a publicly traded oil company. Shell Oil Co., based in Houston, is a leading oil and natural gas producer and petrochemical manufacturer.

Construction will begin on the plant next year, after regulatory permits are obtained, and operations are expected to begin in 2003. The complex, which should employ about 40 BASF employees and 25 full-time contract maintenance employees, will pay about $4 million per year in property taxes.