US Dow expects to complete Texas PDH plant in Q1 2015

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.

Because of the advent of shale gas, US crackers now favour lighter gas-based feedstock over naphtha. Lighter feedstock produce less 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:

Company Capacity, tonnes Site Start-up
Enterprise Products 750,000 Texas Q3 2015
Dow Chemical 750,000 Texas Q2 2015
Ascend Performance Materials 1,000,000+ Texas Q4 2015
Formosa Plastics 658,000 Texas 2016
Williams 500,000 Alberta Q2 2016
REXtac 300,000 Texas mid 2016
Dow Chemical new plant US 2018
PetroLogistics expansion Texas NA
Enterprise Products new plant Texas NA
Source: Companies, ICIS

By: Al Greenwood
+1 713 525 2645

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