October 2015

Trends and Resources

HP Business Trends

As a consequence of the shale gas boom, US crackers have switched away from naphtha feedstock to ethane-based feedstock.

Nichols, Lee, Rhodes, Mike, Hydrocarbon Processing Staff

As a consequence of the shale gas boom, US crackers have switched away from naphtha feedstock to ethane-based feedstock. This, in turn, has caused a tightening in domestic propylene supplies. To decrease the propylene supply and demand gap, companies such as C3 Petrochemicals, Dow Chemical, Enterprise, Formosa Plastics and REXpro are planning to construct new propane dehydrogenation (PDH) units along the US Gulf Coast. These companies have announced nearly 3.5 MMtpy of new propylene capacity by 2018. This represents a total cost of over $5 B through 2018. Total new propylene capacity could reach nearly 4 MMtpy should BASF greenlight its methane-to-propylene (MTP) project in Freeport, Texas.

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