HOUSTON, Nov. 16, 2016 /PRNewswire/ -- SBE Chemical Partners I LLC (the Company), the owner of "Raven", an on-purpose Ethylene-to-Butene-1 processing facility to be located in Baytown, Texas, today announced the execution of definitive agreements for all capital commitments, subject to certain conditions, necessary for the construction of the facility. Additionally, the Company has entered into an engineering, procurement, and construction (EPC) contract for the project. Engineering and site preparation activities have begun, and Raven's commercial operations are currently expected to commence in 2018.
Raven has secured long-term fee-based offtake agreements with commitments from multiple Butene-1 buyers for most of its capacity. The Company believes that there is ample room on the Raven site for expansion, and discussions with current and potential customers are underway for additional offtake.
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 abundantly available derivative of natural gas) to meet anticipated growth in the polyethylene and associated markets.
Raven was developed by Evonik Industries (Evonik) and Quanta Capital Solutions, Inc. (Quanta Capital). Stone Bridge Energy Partners also acted as a developer of the project. Quanta Capital and funds managed and/or advised by Partners Group are partnering as co-lead financial sponsors for the project.
Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik's corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency, and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2015 more than 33,500 employees generated sales of around €13.5 billion and an operating profit (adjusted EBITDA) of about €2.47 billion.
About Partners Group
Partners Group is a global private markets investment management firm with over USD 55 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 San Francisco, 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 850 people and is listed on the SIX Swiss Exchange with a major ownership by its partners and employees.
About Quanta Capital
Quanta Capital sources, develops, structures, and invests in infrastructure projects and companies in the electric power, midstream, downstream, and renewable energy industries. Quanta Capital's previous infrastructure projects include high and medium voltage transmission lines and substations, gathering pipelines and processing facilities, downstream pipeline systems and storage, fiber optic networks, and renewable energy generation in North and Latin America.
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 the project; the impact of the facility on its desired customer markets; and prospective growth in the demand for Butene-1 and products 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 the facility pursuant to the EPC contract 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 the facility; the inability of customers to pay for Butene-1; and other factors affecting the facility 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.
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SOURCE SBE Chemical Partners I, LLC.