HOUSTON, Jan. 24 /PRNewswire-FirstCall/ -- Lyondell Chemical Company (NYSE: LYO) today announced the 2003 capital expenditure budget for Lyondell and its ventures, Equistar Chemicals, LP, and LYONDELL-CITGO Refining LP (LCR).

Components of the 2003 capital budget and the estimated 2002 capital expenditures are shown below.
 

      Millions       Intermediate   Equistar       LYONDELL-       Lyondell
     of dollars      Chemicals &    Chemicals (B)    CITGO            and
                    Derivatives (A)                Refining (B)  Proportionate
                                                                   Share of
                                                                    Equity
                                                                  Investments
     2003 Capital
      Budget           $ 131          $ 97            $ 71         $ 241 (C)
     2002 Estimated
      Capital
      Expenditures      $ 87         $ 118            $ 65         $ 198 (D)
     Lyondell's
      Current
      Ownership
      Position           100%         70.5%          58.75%

     (A) Includes contribution to PO-11 joint venture.
     (B) Amounts shown for joint ventures are on 100% basis.
     (C) At current ownership levels.
     (D) Includes 41% of Equistar capital expenditures through August 22, 2002
         and 70.5% thereafter.

"Lyondell's 2003 capital budget reflects spending priorities consistent with our long-term strategy," said Lyondell President and CEO Dan F. Smith. "We will invest where we have sustainable competitive advantage by completing our investment in the new propylene oxide plant in Rotterdam (PO-11) owned by our joint venture with Bayer. We also will spend the funds necessary to maintain our facilities for the long term and to advance required environmental compliance spending programs."

Spending in Intermediate Chemicals and Derivatives (IC&D) will increase over 2002 levels as a result of the timing of contributions to the PO-11 project, which is expected to be completed in the second half of 2003. Additionally there have been timing changes that have shifted some spending from 2002 into 2003. Lyondell's estimated capital spending on the PO-11 project in 2002 was $55 million. In 2003, Lyondell plans to spend $70 million on PO-11.

Equistar's 2002 estimated capital expenditures include $47 million related to the expiration of railcar leases. Equistar may pursue leases for a portion of these railcars. Excluding this item, increases in Equistar's capital program in 2003 result from spending to ensure regulatory and environmental compliance. Lyondell estimates that its proportionate share of Equistar's 2003 capital budget will be approximately $68 million.

Lyondell's 2003 contribution to support LCR's capital spending is currently expected to be approximately $42 million.

Lyondell Chemical Company, (www.lyondell.com ), headquartered in Houston, Texas, is a leading producer of propylene oxide (PO), propylene glycol (PG) and other PO derivatives such as butanediol (BDO) and propylene glycol ether (PGE). Lyondell also is the world's number three supplier of toluene diisocyanate (TDI) and a producer of styrene monomer and MTBE as co-products of PO production. Through its 70.5% interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America, as well as a leading producer of polypropylene, ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States, processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.

The statements in this release relating to matters that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: the cyclical nature of the chemical and refining industries; global economic conditions; industry production capacity and operating rates; the supply/demand balance for Lyondell's and its joint ventures' products; competitive products and pricing pressures; availability, cost and volatility of raw materials and utilities; access to capital markets; governmental regulatory actions and political unrest; technological developments and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Lyondell's Annual Report on Form 10-K for the year ended December 31, 2001, filed with the Securities and Exchange Commission in March 2002, and Lyondell's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002, which was filed in November 2002.

SOURCE Lyondell Chemical Company