Dow announced plans to fully integrate and grow North American performance businesses with shale gas liquids.
MIDLAND, US: The Dow Chemical Company announced comprehensive plans to increase the company’s ethylene and propylene production. The company also plans to integrate its US operations into feedstock opportunities available from increasing supplies of US shale gas in the Marcellus and Eagle Ford shale regions.
“The improved outlook for US natural gas supply from shale brings the prospect of competitively priced ethane and propane feedstocks to Dow. Our plan is to further integrate Dow’s businesses with the advantaged feedstocks, based on shale gas deposits and long-term ethane and propane supply agreements. These actions will strengthen the competitiveness of our businesses, as we continue to capture growth in the Americas,” said James Fitterling, Executive Vice President, Dow.
The company is currently finalizing plans to increase the company’s ethylene supply and increase its ethane cracking capabilities at existing US Gulf Coast facilities by - re-starting an ethylene cracker at the Charles operations site near Hahnville, LA by the end of 2012; improving ethane feedstock flexibility for an ethylene cracker at the company’s Louisiana operations site in Plaquemine, LA in 2014; increasing ethane feedstock flexibility for an ethylene cracker at the Dow Texas operations site in 2016; and constructing a new, world-scale ethylene production plant in the US Gulf Coast, for start-up in 2017.
Dow is also planning to increase it’s propylene supply by - constructing a new, world-scale, on-purpose propylene production facility at Dow Texas operations, for start-up in 2015 and exploring an option to commercialize its own technology to produce propylene from propane, with the potential start-up of a new production unit in 2018.
Dow has signed ethane and propane supply contracts based on the Eagle Ford shale gas and is pursuing several more agreements from this area. In addition, Dow has signed a memorandum of understanding with a wholly-owned subsidiary of Range Resources Corporation, stating plans to enter into a long-term supply agreement for the delivery of ethane from the Marcellus Region to Dow’s existing operations in Louisiana.
“As the largest consumer of propylene in North America, Dow has a unique opportunity to invest aggressively for on-purpose propylene production from propane. Additionally, Dow is the largest producer of ethylene in North America, which provides capabilities to increase our use of ethane. All of these investments, combined with Dow’s planned agreement with Range Resources, will dramatically increase our capability to consume ethane, while maintaining our industry-leading feedstock flexibility,” said Fitterling.
(C) WOC News