Natural gas and crude oil pipeline company Enterprise Products Partners is planning to construct a propane dehydrogenation (PDH) facility on the Gulf Coast in Texas, US.
The PDH plant, with a capacity to consume up to 35,000 barrels a day (BPD) of propane, will produce approximately 25,000 BPD of polymer grade propylene (PGP).
Enterprise's natural gas liquids (NGL) and petrochemical storage facilities will supply propane and approximately 100 million barrels of NGL as feedstock for the PDH facility.
The PDH facility is expected to start commercial operations in the third quarter of 2015.
By 2015, the PDH facility is expected to have 708,000 BPD of NGL fractionation capacity to produce 177,000 BPD of propane, according to the company.
In 2015, the PDH unit is also expected to be complemented by the company's 80,000 BPD propylene fractionation capacity, which fractionates refinery grade propylene to produce PGP.
A.J Teague, Enterprise general partner, executive vice president and chief operating officer, said with access to supplies of propane, the new facility will give the company feedstock flexibility in addition to providing customers with unsurpassed reliability and optionality.
"The opportunity for this PDH project is directly attributable to the success producers have achieved in the growth of NGL-rich natural gas production through the development of the shale and non-conventional resource plays in the United States," Teague said.
"By switching their feedstocks from more costly, imported crude oil derivatives to domestically produced ethane, the US ethylene industry is now one of the lowest cost producers of ethylene in the world.
"Our PDH unit will utilise growing supplies of domestically produced propane to provide another source of competitively priced polymer grade propylene."