Deer Park (Shell) Integrated Petrochemical Complex, TX, USA

The Deer Park ethylene facility is in Texas, USA, and, along with Norco in Louisiana, is the main ethylene supplier for Shell Chemical's operations in North America. The two plants are the main supports of Shell's Gulf olefins system. The objective of the expansion of the Shell facilities in both Louisiana and Texas is to defend and possibly expand the company's market share. Shell Chemical is a major competitor in the US merchant ethylene market. It is a smaller player in the merchant market for propylene.

DE-BOTTLENECKING OLEFIN PRODUCTION

Shell Chemical has decided to combine two planned expansions at its Deer Park, Texas, olefins plant into one large de-bottlenecking project. This is part of its wider scheme to enhance its production facilities in the southern USA.

In the second half of 1999, the company declared that it was going to expand its ethylene capacity at Deer Park. The expansion would be by 450,000t/yr, bringing the total plant capacity up to about 1.5 million tonnes per year. The expansion is due to come on stream by 2002. The propylene output may also be expected to go up, by about 155,000t/yr.

OXO-ALCOHOLS PLANT: INCREASED EFFICIENCY

The Shell complex at Deer Park also includes an oxo-alcohols plant. The plant produces normal butanol, iso-butanol and 2-ethylhexanol. Shell has a one-step process which converts propylene directly into butanol, iso-butanol and 2-ethylhexanol. These products generally have a higher value-added element, although this is dependent on the vagaries of the market. In early 2000, the butanol plant was linked to a syngas plant, which should improve the site's efficiency. The link up was tied in with an ordinary maintenance outage.

BUTADIENE PLANT UNDER CONSTRUCTION

The plant complex at Deer Park also has a butadiene plant under construction. This is a joint venture between Shell Chemical Company, BASF and Total Fina. The plant is scheduled for a 2002 start up. A distribution system to pipe the butadiene directly to major regional customers is planned. The Deer Park site is important in terms of supplying raw materials for this butadiene plant, although it does not belong entirely to Shell Chemical.

LOU-TEX PIPELINE

In addition to changes at the plant complex, the propylene pipeline between Louisiana and Texas is being released in return for cash. This is the Lou-Tex pipeline that has been dedicated to transporting chemical-grade propylene from Sorrento into Shell Chemical's storage at Mont Belvieu. The line has no doubt served as a balancing mechanism between Shell's steam crackers at Norco and Deer Park, providing raw propylene feed from Norco to derivative units at Deer Park. The clear implication is that the pipeline's capacity far exceeds what is needed for the propylene transfer. In the agreement with the new operating company, Shell Chemical retains capacity rights in the line for propylene transport.

SHELL'S PETROCHEMICAL STRATEGY

Economies have been an important priority for the Shell group, including its petrochemical arm, in the past four years, and a major part of these savings have been generated by a cutback in capital investment. However, half of the remaining worldwide capital budget has gone to sites in the Americas, including the Deer Park petrochemical complex. The company has also carried out work recently on the neighbouring oil refinery, which supplies petrochemical feedstock to the ethylene facilities.

In addition to the ethylene expansion, Shell Chemical is also investing in butanol facilities at the site. The use of butanol in acrylate and methacrylate esters, which now accounts for more than 40% of consumption, is growing at an annual rate of 4-5%, compared to an average yearly growth of 3% for the butanol market in general. Continued strength in the housing market, where the esters are used in latex architectural paints, is driving this demand.