REXtac to build PDH plant, PP lines at former Flint Hills site

Source: ICIS News


HOUSTON (ICIS)--REXtac has started developing an integrated propane dehydrogenation (PDH) and polypropylene (PP) project near its existing complex in Odessa, Texas.

The company did not immediately respond to a request for comment on Tuesday.

REXtac bought the complex from Flint Hills Resources in 2009.

At the time, the plant had a PP capacity of 95,000 tonnes/year, according to ICIS plants and projects.

REXtac has chosen Fluor to begin preliminary front end engineering and design (FEED) work on a 300,000 tonne/year PDH plant and two integrated PP lines with more than 270,000 tonnes/year of capacity, the company said in a news release issued late in October. The project will include integrated fractionation and storage facilities for natural gas liquids (NGLs).

Production should start in mid-2016, the company said.

REXtac chose UOP's Oleflex technology for the PDH plant, the company said in the release. It will develop the project through a subsidiary, REXpro.

REXtac is among several companies that have announced plans to build on-purpose propylene plants, which will use propane as a feedstock. REXtac's project is the ninth announcement for North America.

Enterprise plans to start production at its first PDH facility in the third quarter of 2015, bringing some 1.65bn lb/year of new polymer-grade propylene (PGP) capacity to the US market. This first PDH plant is sold out.

Enterprise's second PDH has a target completion date of the first half of 2017 if the company goes through with project.

In addition to Enterprise, Dow Chemical announced plans to build two PDH plants. Formosa, PetroLogistics and Ascend Performance Materials also announced plans for plants.

Williams plans to build a PDH plant in Canada, which will supply propylene to the US Gulf coast. 

Companies are building PDH plants because of the advent of shale gas, which is increasing supplies of propane, the feedstock for on-purpose propylene plants.

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