Enterprise mulls second PDH unit in anticipation of falling propylene supply

08-Jan-13

In anticipation of a continuing decrease of propylene supplies in the country, US propylene maker Enterprise Products is considering building a second propane dehydrogenation (PDH) facility, as per ICIS. The company plans to launch production at its first PDH facility in Q3-2015, bringing almost 1.65 bln lb/year (750,000 tpa) of new polymer-grade propylene (PGP) capacity to the US market. Long-term agreements are said to be reached to effectively “sell out” output from the unit. The PDH plant will be integrated with its existing fractionation assets, PGP storage facilities, 102-mile distribution pipeline system and export terminal. Strong demand for output from its PDH unit is being driven by the combination of a 38% decrease in propylene supplies since 2006 due to additional ethane cracking and the growing supplies of domestic propane from the US shale plays. The company is in the process of continuing discussions with several customers that could lead to a second PDH unit or additional propylene manufacturing capacity.