PetroLogistics seeks permission to double propylene output in Houston

14-Sep-12
PetroLogistics LP , operator of the only dedicated U.S. propylene plant, is seeking permission to double the Houston factory’s output as supplies fall and competitors including Dow Chemical Co. plan similar facilities, as per Bloomberg. PetroLogistics wants to add six combustion units to the five currently producing propylene, an ingredient in plastics, nylon and detergents, the Houston-based company said in an application to the Environmental Protection Agency. PetroLogistics has not arrived at a final decision on whether to invest in the project Dow and Enterprise Products Partners LP are among companies planning to open similar facilities by mid-decade because of relatively low U.S. gas prices and tighter supplies of propylene. Annual U.S. propylene output has declined as much as 5 bln lbs since 2005 when ethylene makers began switching from oil to cheaper gas-based feedstocks that yield less propylene as a byproduct.
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