21 April 2011 16:31 [Source: ICIS news]
TORONTO (ICIS)--Dow Chemical plans to build a world-scale ethylene plant on the US Gulf coast for start-up in 2017, the US-based chemicals major said on Thursday.
The plant will be part of a plan to integrate Dow’s petrochemicals business with feedstock opportunities from the ?xml:namespace>
Dow said it is finalising plans for the ethylene plant for start-up in 2017.
Dow is also planning a world-scale on-purpose propylene plant in
“The improved outlook for
“Our plan is to further integrate Dow’s businesses with the advantaged feedstocks, based on shale gas deposits and long-term ethane and propane supply agreements,” he said.
These actions would strengthen the competitiveness of Dow’s performance plastics, performance products and advanced materials businesses, Fitterling added.
In addition to plans for new ethylene and propylene plants, Dow is preparing to restart its ethylene plant at
Dow also plans to improve ethane feedstock flexibility for an ethylene cracker at
For propylene, Dow is exploring an option to commercialise its own technology to produce propylene from propane, with the potential start-up of a new production unit in 2018, it added.
Dow said it plans to supply the required ethane and propane feedstock for these projects through “a variety of supply arrangements”.
Possible supply option include a joint venture fractionator in Texas; supplies from existing fractionators; supply from future new fractionators to be built within the industry; and potential supply deals from various shale gas opportunities such as the Eagle Ford and Marcellus shale regions.
Dow has signed ethane and propane supply contracts based on the Eagle Ford shale gas (in Texas) and is pursuing several more agreements from this area, it said.
In addition, Dow has signed a memorandum of understanding with a subsidiary of Range Resources for long-term supply agreement for the delivery of ethane from the Marcellus Region in southwest
“As the largest consumer of propylene in
“Additionally, Dow is the largest producer of ethylene in
The planned projects and investments would increase Dow’s capability to consume ethane, while maintaining the company’s feedstock flexibility, he added.
In a conference call in February, Dow CEO Andrew Liveris said that Dow was planning to increase its ethane sourcing and cracking capabilities in the US.
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