24 March 2013 21:36 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--The production of on-purpose butadiene (BD) will go a long way in reducing price volatility in the US market, the chief executive of US-based TPC Group said on Sunday.
“We believe we can have a favourable impact on the market in terms of reducing volatility,” CEO Mike McDonnell said on the sidelines of the International Petrochemical Conference (IPC).
TPC is in the second phase of its engineering study to build a 600m lb/year (270,000 tonne/year) on-purpose BD plant using its proprietary technology at a site in Texas. Start-up is scheduled for late 2016, he noted.
“We will use NGL [natural gas liquids] feedstock and in particular we think butane will be a very attractive feedstock for us,” said McDonnell.
“We believe we will build the world’s lowest cost on-purpose BD plant because of the abundant NGL in the US, and our technological advantage. If you’re not the low-cost producer for on-purpose BD, when the market cycles down, you're the first to shut down,” he added.
While on-purpose BD is not likely to lead to US self sufficiency in the key building block for synthetic rubber, it will reduce import requirements, he said.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.
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.
|ICIS news FREE TRIAL|
|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|
Asian Chemical Connections