05.05.2014 • NewsBASFDede WillamsPetrochemicals

BASF to Build Methane-to-Propylene Plant in U.S.

BASF has announced plans to build a world-scale methane-to-propylene complex on the US Gulf Coast to take advantage of low-cost, shale gas-derived ethane feedstock.

The German group did not reveal the projected cost of the facility or a planned start-up date, but some reports said the cost could exceed €1 billion.

Speaking to the annual shareholders meeting, CEO Kurt Bock said it will be BASF's largest single-plant investment to date, is expected to "considerably improve the group's cost position and backward integration in the U.S.

The unquantified output would be earmarked for captive use in North America.

BASF Total Petrochemicals, the 60:40 venture with France's Total, recently started up of a 10th furnace at its steam cracker in Port Arthur, Texas, which last year was revamped to use ethane feedstock.

While the group said this would improve feedstock flexibility, enhance plant reliability and increase the jv's annual ethylene output to more than 1 million t/y, it will at the same time reduce output of propylene, a BASF executive explained to a UK news agency. This will necessitate on-purpose output of C3 to balance BASF's supply-demand balance in North America.

Also at the meeting, Bock also announced that BASF will explore for shale gas in Argentina.

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