The board of directors for TPC Group approved a strategic project to produce on-purpose isobutylene, the US-based petrochemicals company said on Thursday.
The project includes the refurbishment and restart of dehydrogenation assets at the companys Houston site.
The dehydrogenation assets will serve to provide isobutylene feedstock for TPCs performance products and fuels business, the company said, including MTBE, polyisobutylene, high-purity isobutylene and diisobutylene.
The construction is scheduled to be complete by the second half of 2014.
Upon startup, the plant will produce up to 650 million lb/year of isobutylene from isobutane, a natural gas liquids feedstock whose production volumes continue to increase as a result of US shale gas development, according to the company.
Total capital expenditure for the project is estimated at $265 million, with $25 million of that amount already spent to date.