LyondellBasell now expects to build its second chemical recycling plant, MoreTec-2, in Europe rather than the US, because of insufficient US regulatory support, executives said during the company’s third-quarter earnings call.
The Houston-headquartered company also announced it was selling its idled Texas refinery site, which had been considered as a location for the plant.
“In the US, we do not yet see strong regulatory support that would eventually enable an investment in MoreTec-2,” CEO Peter Vanacker said Oct. 30, contrasting that with strong regulatory support for circularity in Europe. US development would depend on a clearer demand picture and regulatory progress, he added.
LyondellBasell announced in 2025 that it would exit the refining business, shutting down its only refinery. Besides MoreTec-2, the site was considered for other projects, including a hydrogen plant. The sale “emerged for us as the most attractive opportunity to create value from the site, while of course also reducing further obligations in the future, as well as complexity,” Vanacker said.
Meanwhile, work on the first commercial-scale plant, MoreTec-1 in Germany, is progressing. The company will use learnings from that project to inform MoreTec-2, which would be deployed only after MoreTec-1 starts up successfully, Vanacker said.
He also reiterated the three pillars of the company’s circularity strategy, citing its most recent sustainability report: first and foremost, supportive regulation, followed by customer demand and by investment and infrastructure capability. Earlier in 2026, LyondellBasell revised its circularity targets after taking “a hard look at regulation and how that could impact demand over the next few years,” he said.
The company continues to invest in circularity “because we believe that it has an attractive value proposition, and while our overall strategy for sustainable solutions remains consistent, executing strategy in a value-accretive way means that we are adapting to the new information that we are gaining from engaging with brand owners, with policymakers, other stakeholders in the value chain,” Vanacker said.
Polyolefin fundamentals
Kim Foley, executive vice president of global olefins and polyolefins, said so far in 2026, PE prices have risen by a cumulative 25 cents per pound. For October and November contracts, the company has nominated further 5 cent/lb increases, citing strong domestic and export demand, low inventories, and constrained supply and logistics, echoing comments from competitor Dow’s recent earnings call.
Q3 polypropylene sales volumes were higher by 5% on the year, while higher pricing for feedstock natural gas liquids (NGLs) is pressuring propylene and PP margins, Foley said. For the fourth quarter, the company expects its Americas olefins and polyolefins assets to operate at about 85% of nameplate capacity, with a turnaround planned for the Lake Charles PP plant.
