BASF SE evaluating investment in methane-to-propylene complex to supply to North American operations

07-May-14

Germany-based chemical giant BASF SE has said it is evaluating an investment in a new world-scale methane-to-propylene complex to supply its North American operations. On-purpose production of propylene would allow BASF to take advantage of the low gas prices following from the shale gas production in the U.S. and considerably improve its cost position. The project would be BASF's largest single-plant investment to date. Details on the potential investment, including the capacity of the plant, investment amount and exact location are currently under evaluation, as per Plasticstoday.com. According to BASF, the new plant would further strengthen its backward integration into propylene in North America and allow it to grow its propylene-based downstream activities, with as ultimate goal a stronger market position on the North American continent. The methane-to-propylene route being considered by BASF is far less common. Yet since the advent of inexpensive natural gas as feedstock, it, too, is looking to be an economically feasible alternative. BASF has disclosed no information about the methane-to-propylene technology it is considering.