The facility will have the capacity to consume as much as 35,000 barrels per day of propane and produce up to 1.65 billion pounds annually of polymer grade propylene (PGP)
Enterprise Products Partners (EPD) and LyondellBasell Industries (LYB) have entered into long-term contracts to support construction of the former’s second propane dehydrogenation plant (PDH 2) at the Mont Belvieu complex in Texas.
The facility will have the capacity to consume as much as 35,000 barrels per day of propane and produce up to 1.65 billion pounds annually of polymer grade propylene (PGP).
The PDH 2 plant is expected to be operational in the first half of 2023.
LyondellBasell CEO Bob Patel said: “As we aim to meet the growing demand for our products, ensuring a long-term supply of feedstock is critical.
“These agreements allow us to leverage Enterprise’s construction expertise, operating experience and robust network as we continue to deliver an outstanding value proposition for our customers.”
EPD said it has reached terms for an engineering, procurement and construction contract with S&B Engineers and Constructors to build the facility.
The company has licensed Honeywell UOP’s Oleflex propane process to produce PGP.
“PGP is a primary petrochemical that can be converted into hundreds of products that improve the daily lives of people around the world.
“Demand growth for these propylene-based products is strong and PDH 2 will provide cost-advantaged supply assurance to our customers, enabling expansion of their downstream businesses to satisfy this global demand.”
Enterprise’s Mont Belvieu NGL fractionation and storage system
Enterprise’s Mont Belvieu NGL fractionation and storage system supporting PDH 2 presently has 760,000 Bpd of NGL fractionation capacity, with another 300,000 Bpd under construction.
Additionally, these complexes have over 100 million barrels of NGL and petrochemical storage.
The integration of the PDH 1 and PDH 2 plants with Enterprise’s propylene fractionation facilities provides operational flexibility for both processes, and a combined PGP supply of more than nine billion pounds annually.
The construction of the PDH 2 facility is expected to generate nearly 1,500 to 2,000 jobs.
Recently, Enterprise Products Partners announced plans to expand and extend its Acadian natural gas system to transport increasing natural gas volumes from the Haynesville Shale to the liquefied natural gas (LNG) market in South Louisiana.