Enterprise Products Partners LP (EPP), Houston, reported it has executed long-term, fee-based agreements that effectively sell out its 1.65 billion lb/year propane dehydrogenation (PDH) plant scheduled to begin operating in third-quarter 2015.
Anticipating continued decrease in propylene supplies, EPP is discussing with more customers the development of additional PDH capacity.
Last year EPP announced plans to build a PDH plant that would consume as much as 35,000 b/d of propane to produce 1.65 billion lb/year of polymer-grade propylene (OGJ Online, June 21, 2012).
The plant will be integrated with EPP’s existing propylene fractionation that has a capacity of 5.3 billion lb/year. The PDH plant will also be integrated with EPP’s PGP storage, 102-mile distribution pipeline system, and export terminal.
A.J. Teague, EPP’s executive vice-president and chief operating officer, noted that demand is being driven by the combination of a 38% decrease in propylene supplies since 2006 due to additional ethane consumption by US petrochemical companies and the growing supplies of US propane from the nation’s shale plays.
“We are continuing our discussions with several customers that could lead to a second PDH unit or additional propylene manufacturing capacity,” Teague said.