Projects: Braskem studies PDH plant in US to supply PP units

04 June 2012 00:00  [Source: ICB]

Brazilian resins major Braskem has confirmed it is studying the construction of a propane dehydrogenation (PDH) plant in the US to provide propylene feedstock for its US polypropylene (PP) plants and take advantage of relatively low gas prices in the country.

Finance director Alexandre Perazzo said the company is considering whether to build a PDH plant - alone or with partners - or seek an offtake agreement with a company that would build the plant. A decision is expected later this year.

"We are talking to various North American groups," Perazzo said in a Reuters report confirmed by Braskem. A new plant would take between two-and-a-half, and three years to build, he said.

"If we became an offtaker, the other company would build the plant and we would be the principal client," he added.

Braskem became the leading producer of PP in the US after acquiring the PP businesses of US-based firms Sunoco and Dow Chemical in April 2010 and October 2011 respectively.

Braskem has been seeking new sources of propylene after Sunoco terminated a 10-year agreement to supply propylene from its refineries in Marcus Hook and Philadelphia, both located in Pennsylvania, US. Sunoco terminated the agreement after announcing last year that it would try to sell the refineries and would permanently shut down the main processing units of the Marcus Hook refinery.

Following the Dow PP acquisition, Braskem said it would receive propylene from Dow group for a transitional period of up to 18 months.

By: Anna Jagger
+44 20 8652 3214

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