09 Jan, 2018, 02:00 ET
HOUSTON, Jan. 9, 2018 /PRNewswire/ -- Arcanum (the Company) today announced plans for expansion of its Butene-1 production complex. The Company's flagship project, Raven, an on-purpose Ethylene-to-Butene-1 processing facility, is currently under construction in Baytown, Texas. Permitting and other development efforts are now underway which would enable two additional on-purpose Butene-1 production facilities at the same location.
The Raven facility has secured long-term fee-based offtake agreements with commitments from multiple Butene-1 buyers for substantially all of its nameplate capacity. Raven may be able to accommodate increased demand for Butene-1 by operating beyond its originally planned capacity through operational optimizations. Additionally, Arcanum believes it is well-positioned to develop and invest in new production facilities to support significant growing North American demand for Butene-1. The existing project site has been developed with the capacity for future Butene-1 projects and related assets. Arcanum intends to leverage existing site infrastructure, prior engineering and construction experience, and industry and customer relationships to efficiently commercialize the additional Butene-1 facilities.
Chief Executive Officer: Ted M. Pettijohn
Ted M. Pettijohn has been named Chief Executive Officer of Arcanum and its subsidiary, SBE Chemical Partners I LLC. Pettijohn, a former Senior Vice President with Evonik Corporation, has over 25 years of experience in the specialty, polymer, and petrochemical industries. In his role, Arcanum expects that he will lead development efforts on additional projects. Pettijohn said, "I am excited to join the business. We are on track for an on-time and on-budget start of the Raven unit in late 2018 and we are already working toward additional facilities. With the potential expanded capacity, Arcanum could become the largest Butene-1 supplier in the world."
Arcanum develops, owns, and will operate production and support infrastructure assets designed to provide long-term, reliable, and flexible solutions to downstream and petrochemical customers. Funds managed and/or advised by Partners Group and First Infrastructure Capital are the principal financial sponsors of the Company. Arcanum is based in Houston, Texas and focuses primarily on opportunities in North America and has available capital capacity for similar investments.
Raven Holding Company, LLC operates under the trade name Arcanum. Through its subsidiary, SBE Chemical Partners I LLC, the Company is constructing and will operate the Raven Butene-1 production facility. Raven was developed by Evonik and Quanta Capital Solutions, Inc., an affiliate of First Infrastructure Capital.
Butene-1 is a linear alpha olefin (LAO) used in the manufacture of a variety of base chemical products, including as a co-monomer for production of polyethylene (LLDPE and HDPE). Most LAO products are produced by processes that result in a range of products, including Butene-1. However, the Raven facility is designed for dedicated on-purpose Butene-1 production from the processing of ethylene (an available derivative of natural gas) to meet anticipated growth in the polyethylene and associated markets.
Additional information about the Company is available at www.arcanumchem.com.
About Partners Group
Partners Group is a global private markets investment management firm with over USD 66 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in Denver, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 1,000 people and is listed on the SIX Swiss Exchange with major ownership by its partners and employees.
About First Infrastructure Capital
First Infrastructure Capital Advisors, LLC (First Infrastructure Capital) sources, develops, structures, and independently manages investments in infrastructure projects and companies in the energy, utility, renewable and communications sectors. With at least $3 billion of equity capital available for investment, First Infrastructure Capital is an SEC- registered investment adviser and wholly-owned subsidiary of Quanta Services, Inc. By aligning Quanta Services' broad operational and technical resources and First Infrastructure Capital's expertise in infrastructure investments, First Infrastructure Capital intends to partner with project sponsors, Quanta customers, and other stakeholders to deploy available capital to facilitate infrastructure development.
This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's plans and strategies; any expected value of offtake agreements and other contracts with customers; capital commitments; the anticipated commencement and commercial operations dates for the facility; the safety, efficiency or success of projects; the impact of Raven and other facilities on desired customer markets; and prospective growth in the demand for Butene-1 and related expansion opportunities; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. Although the Company and its management believe that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to be correct. These statements can be affected by inaccurate assumptions and by a variety of risks and uncertainties that are difficult to predict or beyond the Company's control, including, among others, the effects of industry, economic or political conditions outside of the control of the Company; successful construction of facilities pursuant to EPC contracts and commencement of commercial operations; issues related to intellectual property associated with licensed technology and processes; failure to realize the anticipated value of offtake agreements and other contract commitments; the potential for claims or damages associated with schedule delays or performance shortfalls; site conditions at the proposed location of facilities; the inability of customers to pay for Butene-1; and other factors affecting facilities and the business of the Company generally. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. The Company does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Company further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release.
SOURCE Raven Holding Company, LLC
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