French Total mulls new US cracker to take advantage of shale gas
Stefan Baumgarten
23-May-2013
HOUSTON (ICIS)–Total may build a new ethane cracker at
Port Arthur, Texas, to take advantage of cheap feedstock from
shale gas, the France-based energy and petrochemicals
major said on Thursday.
Patrick Pouyanne, president of Total
Refining & Chemical, said that in light of
the impact of the US shale gas revolution on the global
petrochemical industry, Total
is examining a project to build a new ethane steam
cracker that would be tied to the existing 1m tonne/year BASF
Total joint venture cracker at Port Arthur to
capture synergies while leveraging cost-advantaged shale
gas-based feedstock.
Pouyanne also said that the BASF
Total cracker can now use ethane as feedstock,
following a revamp. The cracker was originally commissioned
in 2001 to process naphtha.
“In response to petroleum product price
hikes and the emergence of abundant gas resources, we adapted
the steam cracker to give it flexibility and maintain its
competitiveness,” Pouyanne said.
“It can now use as a feedstock ethane,
which costs around $30 per barrel of oil equivalent (boe)—
versus around $100/boe for naphtha — and liquefied petroleum
gases such as butane and propane, which are also cheaper,” he
said.
The cracker is a 40:60 joint venture
between Total and BASF.
In addition to the revamp, BASF
Total also began building a 10th ethane cracking
furnace, scheduled to come on stream in the second quarter of
2014. The new furnace will improve the steam cracker’s
availability and increase its cracking capacity by nearly
15%, making it even more efficient, Pouyanne said.
Total is earmarking its share of ethylene
produced by BASF Total for its Bayport polyethylene (PE)
plant and its share of propylene for its La Porte
polypropylene plant. Both facilities are located in
Texas.
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