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Markets :: Basic Chemicals :: Petrochemicals :: Propylene

IHS: BASF's methane-to-propylene evaluation for US Gulf Coast is 'wise move'

5:22 AM MDT | May 7, 2014 | Clay Boswell

BASF’s proposal to build a world-scale methane-to-propylene (MTP) complex on the US Gulf Coast is strategically sound, and it may also be tactically savvy, says Chuck Carr, senior director/global olefins at IHS Chemical. BASF needs to address the shrinking supply of propylene produced by North America's steam crackers, and on-purpose production is most likely the answer. At the same time, the choice of MTP over propane dehydrogenation (PDH) suggests that BASF may expect the gap between crude oil and natural gas prices to grow over the long term, providing an advantage to production from methane....

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