BASF evaluates new US propylene plant vis-à-vis shale gas

03 May '14

2 min read

BASF is evaluating an investment in a world-scale methane-to-propylene complex on the U.S. Gulf Coast. The on-purpose production of propylene to supply the company’s North American operations would allow BASF to take advantage of low gas prices due to U.S. shale gas production and considerably improve its cost position. This would be BASF’s largest single-plant investment to date.

BASF intends to further strengthen its backward integration into propylene and grow its propylene-based downstream activities, leading to a stronger market position in North America.

Propylene is one of the most important basic chemicals in the petrochemical industry and is used in the production of a wide range of higher-value chemicals. These chemicals are used to manufacture products such as coatings, detergents or superabsorbent polymers for baby diapers.

Details on the potential investment, including the capacity of the plant, investment amount and exact location are currently under evaluation.

About BASF

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. It combines economic success with environmental protection and social responsibility. Through science and innovation, it enables its customers in nearly every industry to meet the current and future needs of society. Its products and solutions contribute to conserving resources, ensuring nutrition and improving quality of life.

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