US Enterprise to boost propylene fractionation capacity

09 May 2011 14:22  [Source: ICIS news]

An Enterprise Products facilityHOUSTON (ICIS)--Enterprise Products Partners on Monday announced plans to expand polymer-grade propylene (PGP) fractionation by 10%, citing tightness in US propylene supply caused by reduced co-propylene output from steam crackers.

The company said it planned to add 500m lb/year (227,000 tonnes/year) of PGP production at its Mont Belvieu facility in Texas, boosting PGP capacity at site to about 5.4bn lb/year.

The expansion is expected to be in service in the first quarter of 2013, Enterprise said.

No financial details were disclosed.

“The shift to NGL feedstocks by the ethylene industry, which is driven by the disparity between natural gas and crude oil prices, has led to a significant reduction in co-production of propylene at North American petrochemical facilities,” said AJ “Jim” Teague, executive vice president and chief operating officer of Enterprise’s general partner.

“This is placing a premium on fractionation services like those Enterprise provides at its Mont Belvieu complex…,” he said.

The announcement by Enterprise comes as US PGP prices are at record highs.

US PGP contracts for May began to settle last week at an increase of 9.5 cents/lb ($209/tonne, €146/tonne), rising by 11% from the record settlement of April.

The initial settlements put PGP contracts at 97.00 cents/lb and chemical-grade propylene (CGP) at 95.50 cents/lb.
($1 = €0.70)

For more on propylene visit ICIS chemical intelligence

By: William Lemos
+1 713 525 2653

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