MOSCOW (MRC) -- Borealis (Vienna), a leading producer of polyolefins, said today that it plans to study the feasibility of a new, world-scale propane dehydrogenation (PDH) plant at its existing production site at Kallo, Belgium, said the producer on its site.
The study will be carried out over the next nine months with the final investment decision expected in the third quarter of 2018. Potential start-up is scheduled for the second half of 2021.
The new PDH plant would have a targeted production capacity of 740,000 metric tons/year of propylene, making it one of the largest such facilities in the world. Borealis chose Kallo due to its logistical position and its experience in propylene production and handling. Borealis has selected the Honeywell UOP Oleflex technology for the new plant. Borealis already owns a 480,000-metric tons/year PDH plant at Kallo, which will continue to operate.
Borealis, a joint venture (JV) in which the International Petroleum Investment Co. (IPIC; Abu Dhabi) holds 64% and the energy group OMV (Vienna) 36%, says it will provide further details, including costs and what it intends to do with the propylene, once the study has been completed. Borealis is a partner in Borouge (Abu Dhabi), a major polyolefins production JV with Adnoc. Borouge is planning to debottleneck its olefins and polyolefins production facilities in Ruwais, Abu Dhabi, adding 1 million m.t./year (MMt/y) of each. The project includes construction of a 650,000-m.t./year polypropylene plant at Ruwais. At present, Borealis and Borouge have combined capacity to produce 8 MMt/y of polyolefins in Abu Dhabi and in Europe.
"A new PDH plant of this scale would be a significant investment for Borealis in Europe. It would strengthen our long term commitment to be the innovative polypropylene and propylene supplier that is meeting the needs of our customers today and in the future," says Markku Korvenranta, Borealis executive vice president/base chemicals. "During the coming quarters we will be engaging with the value chain partners and authorities to work out the commercial and operational details of the project."
"In Europe propylene demand is increasing while the supply growth from steam crackers and refineries is slowing down. With the market tightening, an on-purpose propylene investment is needed to ensure a reliable platform for continuous, long-term growth in propylene and its derivatives in Europe," says Thomas Van De Velde, vice president/hydrocarbons & energy.
As MRC informed earlier, in April 2016, Borealis AG and PAO Gazprom, the world's gas major, signed a Memorandum of Understanding. The document reflects the parties' interest in evaluating opportunities to develop joint gas chemical projects in Russia.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. It generated EUR 8.3 billion in sales revenue in 2014.
MRC