Westlake Chemical Partners LP (WLKP) is a master limited partnership (MLP) formed by Westlake Chemical Corporation, a leading global manufacturer of petrochemicals, polymers, and building products. Westlake Chemical Partners was established in 2014 and is headquartered in Houston, Texas, USA. The primary purpose of the partnership is to own, operate, develop, and acquire ethylene production facilities and related assets.
The main focus of Westlake Chemical Partners is on ethylene production, a vital petrochemical used as a building block in the production of various plastics, resins, and chemicals. Ethylene is primarily produced from the steam cracking of hydrocarbons, such as ethane and propane.
Westlake Chemical Partners’ assets include three primary components:
- Ethylene Production: The partnership owns an interest in Westlake Chemical OpCo LP, which operates several ethylene production facilities located in the United States. These facilities have a combined annual production capacity of over three billion pounds of ethylene.
- Ethylene Sales: Westlake Chemical Partners is responsible for the sale of the ethylene produced by its facilities. It has a long-term sales agreement with its parent company, Westlake Chemical Corporation, ensuring a stable and predictable cash flow for the partnership.
- Future Growth Opportunities: Westlake Chemical Partners aims to expand its asset base by acquiring, developing, and operating additional ethylene production facilities and related assets, either independently or in conjunction with Westlake Chemical Corporation.
Westlake Chemical Partners is focused on providing stable and growing cash distributions to its unitholders, primarily through its long-term ethylene sales agreement with Westlake Chemical Corporation. The partnership benefits from the strong demand for ethylene, driven by the growth in various end markets, such as packaging, automotive, and construction.