Westlake Chemical Partners Reveals Renewal of Ethylene Sales Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Ethylene Sales Agreement Renewal: Westlake Chemical Partners has renewed the Ethylene Sales Agreement with Westlake Chemical OpCo LP and Westlake Corporation, extending it through December 31, 2027, with automatic 12-month renewals thereafter.
Impact on Distributions: The renewal ensures continued offtake of 95% of ethylene produced by OpCo under the same pricing formula, allowing the Partnership to maintain its record of 45 consecutive quarterly distributions to unitholders since its IPO in 2014.
Amendments to Related Agreements: Alongside the renewal, amendments were made to the Services and Secondment Agreement and the Omnibus Agreement to align their terms with the Ethylene Sales Agreement and address indemnification obligations.
Indemnification Matters: The amendments to the Omnibus Agreement also clarified procedural requirements related to Westlake's indemnification of the Partnership for various matters, including environmental and tax issues.
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Analyst Views on WLKP
About WLKP
Westlake Chemical Partners LP is a limited partnership formed by Westlake Corporation to operate, acquire, and develop ethylene production facilities and other qualified assets. Its business and operations are conducted through OpCo. OpCo's assets consist of three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, as well as an ethylene pipeline, which primarily converts ethane into ethylene and has an aggregate annual capacity of approximately 3.7 billion pounds, and a 200-mile ethylene pipeline. It owns two ethylene production facilities at Westlake's Lake Charles, Louisiana site (Petro 1 and Petro 2, collectively Lake Charles Olefins), with an annual combined capacity of approximately 3.0 billion pounds. The Company owns one ethylene production facility at Westlake's Calvert City, Kentucky site (Calvert City Olefins), with an annual capacity of approximately 730 million pounds.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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