HOUSTON, Dec. 21 /PRNewswire/ -- Lyondell Chemical Company (NYSE: LYO) today announced the 2001 capital expenditure budget for Lyondell and its Equistar Chemicals, LP and LYONDELL-CITGO Refining LP (LCR) ventures. Lyondell's capital budget is approximately $348 million, including the Company's proportionate share of capital spending for Equistar and LCR.

The components of the 2001 capital budget, 2000 estimated capital expenditures and 2001 estimated depreciation and amortization are shown below.

             CAPITAL EXPENDITURES AND DEPRECIATION & AMORTIZATION

     Millions          Intermediate    Equistar      LYONDELL-   Lyondell and
     of dollars         Chemicals &   Chemicals(B)    CITGO      Proportionate
                       Derivatives    Lyondell has   Refining(B)    Share of
                       Lyondell owns      41%      Lyondell has      Equity
                          100%        ownership      58.75%        Investments
                                                    ownership

     2001 Capital Budget  $ 216         $ 166         $ 109           $ 348
     2000 Estimated
      Capital
      Expenditures        $ 115(A)      $ 130         $  60           $ 204
     2001 Estimated
      Depreciation &
      Amortization        $ 240         $ 300         $ 115           $ 443

    (A) Amount does not reflect reimbursement from Bayer related to PO-11
        joint venture.
    (B) Amounts shown for joint ventures are on 100% basis.

The increase in the capital budget for Intermediate Chemicals and Derivatives primarily reflects Lyondell's 50 percent share of capital for the PO-11 joint venture with Bayer AG. As previously announced, Lyondell and Bayer have formed a manufacturing joint venture for the world-scale propylene oxide/styrene monomer facility, which is currently under construction in the Netherlands. Lyondell and Bayer will each have a 50 percent interest in the joint venture. Under the terms of the agreement, Bayer has purchased its interest in PO-11 from Lyondell with a cash reimbursement of approximately $50 million, or 50 percent of the project costs incurred by Lyondell for PO-11 to date. Future costs will be shared on an equal basis by both companies.

Equistar's capital spending in 2001 primarily will target projects to improve operational excellence and plant efficiencies, as well as high return business opportunity projects.

Capital expenditures in 2001 at LCR will increase from 2000 because of higher spending on regulatory compliance, maintenance and cost reduction projects.

Lyondell Chemical Company (www.lyondell.com), with headquarters in Houston, Texas, is the world's largest producer of propylene oxide (PO); the world's number two supplier of TDI (toluene diisocyanate); a leading producer of propylene glycol; a leading producer of other PO derivatives such as BDO (butanediol) and PGE (propylene glycol ether); and a producer of styrene monomer and MTBE as co-products of PO production. Through its 41% interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America and 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. Lyondell is the third largest methanol producer in the U.S., through its 75% interest in Lyondell Methanol Company, L.P.

The statements in this release relating to matters that are not historical facts are forward-looking statements that are subject to risks and uncertainties, including, but not limited to, future global economic conditions, industry production capacity and operating rates, the supply/demand balance for the Company's products, competitive products and pricing pressures, further increases in raw material costs, changes in governmental regulations and other risks and uncertainties detailed in the Securities and Exchange Commission filings of Lyondell.
SOURCE Lyondell Chemical Company
Web site: http: //www.lyondell.com
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CONTACT: media, Marvin Brown, 713-309-2643, or investors, Sami Ahmad, 713-309-7141, both of Lyondell Chemical Company
CAPTION: LYOLOGO LYONDELL LOGO Lyondell Logo. (PRNewsFoto)[PM] HOUSTON, TX USA 09/21/2000