30 April 2012 22:13 [Source: ICIS news]
HOUSTON (ICIS)--LyondellBasell will pay a lot of attention to the propylene molecule as it makes final investment decisions on a metathesis unit, the company’s chief executive said on Monday.
“There have been a fair number of announcements related to PDH [propane dehydrogenation] units and … people can overbuild rapidly,” CEO Jim Gallogly said during a conference call with investors.
“So we’ll look at relative economics and make sure that still makes sense as we develop the engineering on that project.”
He said butadiene (BD) has been in short supply because of lighter cracking.
“As a result of that, the [propylene] molecule has been short, butadiene has been short and you’ve heard people talk about PDH units, metathesis units,” he said.
PDH and metathesis units both produce propylene.
“The propane crack is pretty good right now,” Gallogly said. “It was pretty warm winter, propane went long. So that’s a pretty nice crack right now which takes some pressure off of ethane.”
LyondellBasell discussed a metathesis project in December during an investor-day presentation.
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