Dow Chemical board authorises capital for Texas propylene project

07 March 2012 14:05  [Source: ICIS news]

Dow authorizes capital for propylene projectHOUSTON (ICIS)--Dow Chemical’s board of directors has authorised capital to finalise detailed engineering and to purchase equipment for the company’s planned world-scale propylene facility in Texas, the US-based chemicals major said on Wednesday.

Dow said basic engineering work for the on-purpose propylene production facility has begun.

The project is on track for production start-up in 2015, it added.

The project will run on Honeywell UOP process technology to produce propylene from propane.

On-purpose propylene production uses propane as a feedstock versus obtaining it as a refinery-sourced byproduct.

Dow added that the board’s authorisation marks a milestone in its plan to benefit from low-cost shale gas-based feedstocks in the US.

“The availability of cost-advantaged feedstocks from US shale gas developments represents a value-creating opportunity for our downstream businesses, and Dow is capitalising on this,” said Brian Ames, Dow vice president of olefins and aromatics.

“Our company was among the first in our industry to declare a comprehensive plan to take advantage of the increasing supplies of US natural gas liquids, and we remain on track to implement that plan, which will create thousands of domestic jobs,” Ames added.

Dow announced its plan for the project in April 2011.

The two main sources of propylene are as a byproduct from the steam cracking of liquid feedstocks such as naphtha as well as LPGs, and from off-gases produced in fluid catalytic cracking (FCC) units in refineries.

The remainder of propylene is produced using on-purpose technologies such as propane dehydrogenation (PDH) and metathesis.

The dominant outlet for propylene is polypropylene (PP).

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index

Related Articles