MOSCOW (MRC) -- Considering the current volatility of raw material prices and the prevailing economic environment, BASF has postponed its final investment decision regarding the construction of a methane-to-propylene complex at its Freeport, Texas, site, said the producer on its site.
"On-purpose production of propylene based on favorable U.S. shale gas is interesting for BASF. We will regularly review the development of raw material prices and the relevant market conditions to determine the right point in time to commence such a major investment," said Wayne T. Smith, member of the Board of Executive Directors of BASF SE.
As MRC reported earlier, in March 2015, BASF made progress in its plans to build a world-scale methane-to-propylene complex on the US Gulf Coast by selecting Freeport, Texas, as the potential site, where it will use Air Liquide's proprietary Lurgi MegaMethanol and methanol-to-propylene (MTP) technologies. BASF also contracted Air Liquide to provide basic engineering services for this gas-to-propylene complex.
The plant is planned to have a production capacity of approximately 475,000 tpy of propylene. This project would be BASF's largest single-plant investment to date and is subject to final approval in 2016 by the BASF executive board.
The Freeport site was founded in 1958 as the first BASF manufacturing facility outside of Europe. With more than 800 full-time employees, the Freeport site is one of two BASF Verbund sites in North America and uses propylene in its manufacturing processes.
BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of more than EUR70 billion in 2015.