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Dow in final stages of off-take deal for new Texas cracker – CEO
ICIS News : 31-Jan-13 16:47
NEW YORK (ICIS)--US-based Dow Chemical is in the final stages of signing a major off-take agreement for production from its planned new worldscale cracker in Freeport, Texas, its chief executive said on Thursday.
“We expect to announce this very, very shortly as well as the total capital cost of the project,” said Chairman, President and CEO Andrew Liveris on the company’s Q4 conference call.
Dow is building a 1.5m tonne/year cracker in Freeport, scheduled for start-up in 2017, as part of a massive petrochemical expansion programme on the US Gulf coast.
In December 2012 at Dow’s investor day meeting, Dow Chief Financial Officer Bill Weideman said that 1.1m tonnes of the ethylene capacity at the cracker would be for the company’s high-value derivatives, and that it was looking for partners to take the rest.
At the meeting, Liveris also noted that major off-take agreements could involve a capital contribution up front from the buyers of the ethylene.
Dow expects its US Gulf coast investments, including the start-up of its 380,000 tonne/year St. Charles, Louisiana, cracker in December 2012; a 750,000 tonne/year propane dehydrogenation (PDH) facility in Freeport by 2015; and an ethane conversion at its Plaquemine, Louisiana, cracker by 2015 to generate $2bn (€1.5bn) in earnings before interest, tax, depreciation and amortisation (EBITDA) by 2017.
($1 = €0.74)
By Joseph Chang
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