Dow lets contract for Oyster Creek complex expansion, upgrade

Dow Chemical Co. let an engineering, procurement, and construction (EPC) contract to Fluor Corp. for a propane dehydrogenation unit, an ethane cracker, and associated power, utilities, and infrastructure upgrades at its Oyster Creek complex in Freeport, Tex. The upgrades are focused on processing hydrocarbons from domestic shale formations, the companies said.

In April 2012, Dow reported it would build an ethylene plant at Oyster Creek, Light Hydrocarbon 9 (LHC 9). The company’s greenhouse gas permit application with the US Environmental Protection Agency estimated LHC 9’s maximum ethylene output at 1.95 million tonnes/year. Dow expects the unit to enter service in 2017.

Oyster Creek is part of Dow’s integrated Texas Operations site in Freeport, along with Plant A, Plant B, and Salt Dome. Dow’s Texas Operations produce more than 21% of the company’s global sales volumes. Dow is adding a propylene plant to Texas Operations which it expects to begin operations in 2015. Dow licensed UOP LLC’s C3 Oleflex process technology for manufacturing on-purpose propylene from propane for the project.

Fluor’s office in Sugar Land, Tex., will lead the EPC and self-perform construction phases of the project with additional support provided by its Asia Pacific operations. Fluor booked the undisclosed contract value into backlog in this year’s first quarter.

Contact Christopher E. Smith at chriss@ogjonline.com.

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