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Dow selects Freeport for its $4 billion Ethylene cracker

The Dow Chemical Company (Dow) will spend $4 billion in capital expenditure for this ethylene and propylene production facilities in Freeport, Texas, USA.

This Olefins project illustrates the previous news about the consequences of the Shale gas to provide long term feedstock at very competitive price to the Downstream activities.

As a good example of the relocation into USA of the petrochemical industry, this new ethylene production facility, together with all other planned projects announced as part of Dow’s comprehensive U.S. investment plan, will employ up to 4,800 workers during peak construction and support over 35,000 jobs in the broader U.S. economy over the next five to seven years.

Today, 70% of Dow global ethylene assets are in regions with cost advantaged feedstocks, this plan represents a game-changing move to strengthen the competitiveness of our high-margin, high-growth derivatives businesses as we continue to capture growth in the Americas.

With 4,200 employees and 3,000 contractors on site daily, Dow Texas Operations in Freeport currently manufactures 44% of Dow products sold in USA and more than 20% of Dow products sold globally.

This decision marks another significant milestone in Dow’s strategy to further develop the competitive advantage for Performance Plastics, Performance Materials and Advanced Materials businesses.

In parallel, Dow had authorized capital expenditure to finalize detailed design and purchase long lead-time equipment for a new, world-scale propylene production facility. to be constructed at Dow Texas Operations.

Dow will license UOP‘s proprietary UOP C3 Oleflex TM process technology to covert shale gas derivated propane into polymer-grade propylene.

The project will increase Dow capacity by:

 – 1.5 million t/y Ethylene

 – 750,000 t/y Propylene

 

The Project Feasibility studies are well in progress with the:

 – Propylene on track for completion in 2015

 – Ethylene production unit scheduled for completion in 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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