23 April 2014 16:34 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical expects to complete its propane dehydrogenation (PDH) unit in the first quarter of 2015, and the plant should reach full run rates by the middle part of that year, the CEO of the US-based producer said on Wednesday.
Dow Chemical is building the plant at its complex in Freeport, Texas. The on-purpose propylene plant will consume propane as a feedstock and have a capacity of 750,000 tonnes/year.
The plant is now more than 20% completed and 90% of the equipment is on site, said Andrew Liveris, Dow CEO. He made his comments during a Q1 earnings conference call.
Once the plant reaches its full run rate, it should contribute $450m/year in earnings before interest, tax, depreciation and amortisation (EBITDA), Liveris said.
In particular, the propylene produced from the PDH plant should benefit Dow's polyurethanes (PU) business.
Dow is among several companies that have announced plans to build PDH plants.
The wave of projects is in response to less availability of propylene.
At the same time, shale gas has increased supplies of propane, the feedstock for PDH plants.
The following lists the PDH plants announced in the US:
|Enterprise Products||750,000||Texas||Q3 2015|
|Dow Chemical||750,000||Texas||Q2 2015|
|Ascend Performance Materials||1,000,000+||Texas||Q4 2015|
|Dow Chemical||new plant||US||2018|
|Enterprise Products||new plant||Texas||NA|
|Source: Companies, ICIS|
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