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                                 EXHIBIT 99.2

                                                           FOR IMMEDIATE RELEASE

LYONDELL ANNOUNCES 1996 CAPITAL BUDGET OF $125 MILLION

    HOUSTON, January 30, 1996--The Board of Directors of Lyondell Petrochemical 
Company (NYSE:LYO) has approved a 1996 capital budget of $125 million. 
Petrochemical projects account for $79 million of the total, and $46 million is 
budgeted for projects at the company's affiliate LYONDELL-CITGO Refining 
Company, Ltd (LCR). In addition to the $125 million capital budget, Lyondell 
will provide funding in the range of $100 million for LCR's major refinery 
upgrade project.
    Actual capital spending in 1995 totaled $168 million, excluding the 
acquisition of the Alathon high-density polyethylene business. Lyondell's 
portion of the expenditures for the LCR upgrade project in 1995 was an 
additional $25 million.
    About 25% of the 1996 petrochemical budget is for the completion of three 
previously announced capacity expansions: an approximately 7% increase in 
olefins capacity in Channelview, a 33% increase in polypropylene capacity at 
LaPorte, and a near-doubling of alkylation capacity at Channelview. Other major 
petrochemical projects include process control upgrades at several operating 
units.
    "This year, we are completing important expansions of our capacity and 
enhancing our operating capabilities and efficiency," said Bob G. Gower, 
chairman and chief executive officer of Lyondell. "Several of these projects 
complement Lyondell's recent acquisitions and new product developments in the 
polymers area."
    As in previous years, most of the spending at LCR other than the upgrade 
project is for environmental, health and safety projects. It is expected that 
Lyondell will provide about half of the $46 million budgeted for LCR from its 
own cash flow, with the remainder funded from a restricted cash reserve and from
CITGO's reinvested earnings during 1996.
    The refinery upgrade project, which will increase LCR's ability to process 
very heavy crude oil from Venezuela, is expected to be operational in early 
1997.
    The cost estimate for the upgrade project, previously estimated at $980
million, is currently undergoing further study and could be increased. The
revised cost estimate will depend on a number of factors, including the impact
of scheduling decisions. Any increase is expected to be less than 10%.
    Spending from project inception in 1993 to the end of 1995 has been $602 
million, including $458 million last year. CITGO contributions and external 
borrowing have provided the majority of the project funding to date. Present 
funding is 50% borrowing and 25% each from CITGO and Lyondell. This current 
funding plan will apply for a total upgrade project cost of up to $1 billion, 
and results in Lyondell's 1996 share of approximately $100 million. If total 
spending on the upgrade project exceeds $1 billion, Lyondell expects to fund 
one-half of these additional costs. Lyondell has already gained significant 
benefits from the venture agreement and expects that earnings and cash flow from
the refinery will be further enhanced upon completion of the upgrade project.
    Lyondell Petrochemical Company produces a wide variety of petrochemicals, 
including olefins (primarily ethylene, propylene, butadiene, butylenes and 
specialty products), methanol, MTBE, and polymers (Alathon(R) high-density 
polyethylene, polypropylene and low-density polyethylene). Lyondell currently 
has an approximately 90% participation interest in LYONDELL-CITGO Refining 
Company Ltd. (LCR), which produces refined petroleum products including 
gasoline, heating oil, jet fuel, aromatics and lubricants.

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