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Westlake Chemical Partners LP focuses on ethylene production, controlling significant assets and operations within the industry.
Westlake Chemical Partners LP is a Delaware limited partnership focused on operating, acquiring, and developing ethylene production facilities and related assets. Established in 2014, the company has a significant interest in OpCo, which operates three ethylene production plants and a 200-mile ethylene pipeline in the United States. The primary operation includes converting ethane into ethylene, a crucial petrochemical that serves as a building block for various derivatives like polyethylene (PE) and polyvinyl chloride (PVC), which are utilized across several industries including packaging and construction.
The company's revenue model relies substantially on the long-term Ethylene Sales Agreement with Westlake, ensuring a steady demand for its ethylene production. Through this agreement, OpCo is obligated to sell a significant portion of its produced volume to Westlake, limiting competition for the majority of its output. This strategic partnership allows Westlake Chemical Partners to maintain control over OpCo, resulting in a robust structure for managing assets and operations within the ethylene production market.
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