The Dow Chemical Company announced comprehensive plans to increase the company's ethylene and propylene production -- and to integrate its US operations into feedstock opportunities available from increasing supplies of U.S. shale gas in the Marcel
The Dow Chemical Company announced comprehensive plans to increase the company?s ethylene and propylene production -- and to integrate its US operations into feedstock opportunities available from increasing supplies of U.S. 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 ? and the promise of new manufacturing jobs to America," said Jim Fitterling, Dow executive vice president and president of Corporate Development & Hydrocarbons.
"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 Performance Plastics, Performance Products and
Advanced Materials businesses, for example the Elastomers product family and the
full Acrylates chain, as we continue to capture growth in the Americas."
Dow Increases Ethylene Supply and Ethane Cracking Capabilities in US Gulf
Coast
Dow is currently finalizing plans to increase the Company?s ethylene supply and increase its ethane cracking capabilities at existing U.S. Gulf Coast facilities by:
Re-starting an ethylene cracker at the Company?s St. 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; Constructing a new, world-scale ethylene production plant in the U.S. Gulf Coast, for start-up in 2017.Dow Increases Propylene Supply
Dow is currently finalizing plans to increase the Company?s propylene supply by:
Dow Pursues Additional Feedstocks from the
Eagle Ford and Marcellus Shale Regions
Dow plans to supply the required ethane and propane for these projects through a
variety of supply arrangements, including: a possible joint venture fractionator
in Texas, supply from existing fractionators, supply from future new
fractionators to be built within the industry, and potential supply deals from
various shale gas opportunities such as the Eagle Ford and Marcellus shale
regions. 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 (MOU) with a
wholly-owned subsidiary of Range Resources Corporation (NYSE: RRC), stating
plans to enter into a long-term supply agreement for the delivery of ethane from
the Marcellus Region in southwest Pennsylvania 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 in existing ethylene
production units ? and to grow," Fitterling said. "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."
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