According to Shell, the three companies are in the final stagesof negotiations. Shell will own about 60% of the SabinaPetrochemicals venture; BASF, 24%; and Atofina, 16%.BASF Corp.,based in Mount Olive, NJ, is the North American subsidiary ofGerman chemical giant BASF AG. Atofina is a subsidiary ofTotalFinaElf, a publicly traded oil company. Shell Oil Co., basedin Houston, is a leading oil and natural gas producer andpetrochemical manufacturer.

Construction will begin on the plant next year, after regulatorypermits are obtained, and operations are expected to begin in 2003.The complex, which should employ about 40 BASF employees and 25full-time contract maintenance employees, will pay about $4 millionper year in property taxes.

Port Arthur, with a population of 58,500, is located in thesoutheastern corner of Texas on the Gulf Coast, 20 miles southeastof Beaumont and 80 miles east of Houston. The city is bordered bySabine Lake, the Gulf of Mexico and the Neches River, and is nearthe center of the Gulf Intercoastal Waterway. Because of shipping,the area is a popular home for refineries.