Lyondell Announces Capital Budget for 2006

HOUSTON, Jan. 26  /PRNewswire-FirstCall/ -- Lyondell Chemical Company (NYSE:LYO) today announced the 2006 capital expenditure budget for Lyondell, including Equistar Chemicals and Millennium Chemicals, and for Lyondell-Citgo Refining (LCR).

Components of the 2006 capital budget, estimated 2005 capital expenditures, and estimated 2005 depreciation and amortization are shown below by entity.

  Millions of dollars  LCC(a)  Equistar  Millennium  Lyondell    LYONDELL-
                               Chemicals Chemicals   Chemical     CITGO
                                                     Company     Refining
                                                  (Consolidated)  (100%)

  2006 Capital Budget  $75(b)    $232      $97(c)     $404         $230
  2005 Capital
   Expenditures
                       $51(b)    $153      $60        $264         $176
  2005 Depreciation
   and Amortization
  (D&A)                $234      $360(d)  $135(d)     $729         $116
  Lyondell's Ownership  100%      100%     100%                   58.75%

  (a) LCC includes Lyondell Chemical Company and its subsidiaries other than
      Equistar Chemicals and Millennium Chemicals and their subsidiaries.
  (b) Includes contributions to U.S. and European PO Joint Ventures.
  (c) Approximately 75% related to titanium dioxide.
  (d) In their separate Forms 10-K, Equistar Chemicals and Millennium
      Chemicals will report 2005 depreciation estimated to be $322 million
      and $107 million, respectively. The difference represents depreciation
      of the values allocated to Equistar and Millennium in Lyondell's
      accounting for its purchase of Millennium on Nov. 30, 4004.



Projected 2006 capital spending for base support and minor plant efficiency projects totals $335 million across the company, including LCR on a 100-percent basis.  Environmental and regulatory project spending, including emission reductions and low-sulfur fuels, totals $215 million including LCR. The majority of this spending will be at LCR and Equistar.  The balance of the budgeted funds will be directed primarily toward profit enhancement within the Equistar business, including projects devoted to further co-product upgrading and raw materials flexibility.

Lyondell's 2006 capital plan does not include any major plant expansions. Lyondell believes that the 2006 capital plan represents the last year of major new regulatory spending under current environmental regulations.

Lyondell expects to make capital contributions to LCR during 2006 equal to its share of LCR's capital spending (58.75 percent or $135 million).

ABOUT LYONDELL

Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a major global manufacturer of basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. It also is a significant producer of gasoline blending components. The company has a 58.75 percent interest in Lyondell-Citgo Refining LP, a refiner of heavy, high-sulfur crude oil. As a result of Lyondell's November 30, 2004 acquisition of Millennium Chemicals Inc., Millennium and Equistar Chemicals, LP are wholly owned subsidiaries of Lyondell. Lyondell is a global company operating on five continents and employs approximately 10,000 people worldwide. 

DATASOURCE: Lyondell Chemical Company



CONTACT:   Investors - Doug Pike, [phone], Media - Susan Moore,

[phone], both of Lyondell Chemical Company 



Web site:  http://www.lyondell.com/ 

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