An investment in a defunct olefins plant, coupled with a turbulent propylene market, is paying off for PetroLogistics LLC, as per Plasticnews. PetroLogistics bought the plant on the Houston Ship Channel from ExxonMobil Chemical Co. in 2008. After retrofitting it to make “on-purpose” propylene — propylene made through propane dehydrogenation (PDH) instead of as a byproduct of cracking ethylene — PetroLogistics began production in February at the 1.2 billion lbs of annual propylene facility.
The period from 2008 to 2010 saw the recession, the emergence of shale gas and divergence between oil and gas prices. Propylene demand went down, but supply went down even more, so there were increasingly tight propylene markets. In the current scenario, propylene supplies are tight and prices are high despite economic recovery.
06-Apr-11 
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