31 January 2013 01:10 [Source: ICIS news]
HOUSTON (ICIS)--The advent of propane dehydrogenation (PDH) plants will enable the US to increase propylene capacity and help move it back to production levels it saw in 2005, a consultant said on Wednesday.
Those levels – up to 34b lb/yr (15m tonnes/year) – are anticipated in 2020 with the completion of the PDH plants, said consultant Daniel Lippe, president of Petral Consulting.
The supply level had fallen by 44% and has yet to recover, Lippe said.
PDH plants use propane as a feedstock to produce propylene.
Prices for propane from Mont Belvieu were at premiums to the Saudi contract price until 2010, when the balance changed to favour the US propane.
Lippe said that as long as Gulf coast prices, plus loading fees, remain discounted to the Saudi contract price, international buyers will continue to load export cargoes out of the US.
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