Air Liquide will provide basic engineering services for the gas-to-propylene complex, which is subject to final approval in 2016 by the BASF executive board.
The company will employ Air Liquide’s proprietary Lurgi MegaMethanol and Methanol-to-Propylene (MTP) technologies in the production of propylene.
The new Freeport complex will allow the company to give a push to its backward integration into propylene and grow its propylene-based downstream activities.
BASF already has a manufacturing facility in Freeport with over 800 full-time employees.
The existing Freeport site is one of two BASF Verbund sites in North America and uses propylene in its manufacturing processes.
The on-purpose production of propylene to supply the company’s North American operations will allow BASF to benefit from low gas prices resulting from US shale gas production, the company said.
A key basic chemical in the petrochemical industry, propylene is used in the production of a wide range of higher-value chemicals.
These chemicals are used to manufacture products such as coatings, detergents, and superabsorbent polymers for baby diapers.
