US Enterprise Products, LyondellBasell agree on new PDH project in Texas

HOUSTON (ICIS)–Enterprise Products Partners and LyondellBasell have executed long-term contracts that support the construction of Enterprise’s second propane dehydrogenation plant (PDH2) in the Mont Belvieu, Texas area, the companies said on Thursday.

LyondellBasell will be the anchor customer of PDH2, which will have the capacity to consume up to 35,000 bbl/day of propane and produce up to 1.65bn pounds/year of polymer grade propylene (PGP).

The facility is scheduled to begin service in the first half of 2023.

Enterprise has licensed Honeywell UOP’s Oleflex propane process for the PDH2 project. It has also negotiated terms for a fixed-cost engineering, procurement and construction contract with S&B Engineers and Constructors.

LyondellBasell had previously been considering a PDH plant, along with a downstream polypropylene (PP) project, in the US.

Earlier this week, however, CEO Bob Patel said that the company would not be building a PDH project in the US as it will be focusing on capital discipline and phasing in growth projects.

Additional reporting by Joseph Chang in New York

Image above shows bottle caps made of PP. Source: Eye Ubiquitous/REX/Shutterstock