Engelhard breaks ground on US proppants facility

10 April 2006 17:36  [Source: ICIS news]

HOUSTON (ICIS news)--Engelhard said on Monday it has entered the oil and gas fields stimulation market with the construction of a frac-sand proppants plant in Arizona to enhance production rates.

Engelhard said it has broken ground for construction of the facility on the Navajo Nation reservation in Sanders. The facility was scheduled to be operational in the second half of 2006 and was expected to reach full production in early 2007, Engelhard said.

Engelhard said the proppant plant would be a multi-million dollar facility but would not release the cost details. Engelhard also would not release the capacity of the plant.

Made of bentonite clay, proppants are hard, spherical particles that are mixed with a fluid and pumped into wells at high pressure, Engelhard said. The proppants fracture hydrocarbon-bearing rock to create channels where oil reserves and gases can flow easily.

“Double-digit growth in market demand for proppants has outstripped available material supply, forcing suppliers to put customers on allocation.” Engelhard said. The Arizona facility will serve markets in the western US, the company said.

By: Brian Ford
+1 713 525 2653

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