BASF Plans for US Megaplant Takes Next Step Despite Oil Price Development

Shale Based Megaplant BASF Plans for US Megaplant Takes Next Step Despite Oil Price Development

19.03.2015Editor: Dominik Stephan

Allthough the low oil price troubles the US shale industry, chemicals giant BASF continues its plants for a propylene Megaplant in the US: The company has chosen Freeport., Texas, as the site for its latest methane-based propylene complex.

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BASF continues to evaluate natural gas-based investment on the US Gulf Coast
(Picture: BASF SE)

Freeport, Texas/USA – BASF's plans for a new methane-based propylene site in the US have taken the next step, the company states: The chemicals firm has selected Freeport, Texas, as the potential site. It will use Air Liquide’s proprietary Lurgi Mega Methanol and Methanol-to-Propylene (MTP) technologies. BASF has contracted Air Liquide to provide basic engineering services for this gas-to-propylene complex.

The plant is planned to have an annual production capacity of approximately 475,000 metric tons 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 Board of Executive Directors.

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About Mega MethanolM and MTPM Technologies

The Air Liquide Mega Methanol technology combines steam reforming and oxygen-fed autothermal reforming with a steam-raising multitubular methanol synthesis reactor, which possesses excellent heat-removal properties for optimum conversion levels as well as a gas-cooled methanol reactor (GCR), being a standard arrangement in all world-scale plants based on Air Liquide’s technology. The natural gas feedstock (or any feedstock combination) is converted to synthesis gas (syngas), which is then converted to methanol.

Methanol-to-propylene (MTP) produces on-purpose propylene from methanol, generated either from natural gas, coal, or biomass. The methanol is first fed into an adiabatic DME pre-reactor, where it is converted to DME and water. The methanol-water-DME stream is then routed to the MTP TM reactor along with steam and recycled olefins, producing a propylene-rich mixture containing various hydrocarbons. The product mixture from the reactors is cooled, and the product gas, organic liquid, and water are separated.

The product gas is compressed, and any traces of water, carbon dioxide, and DME are removed. This purified gas is then turned into polymer-grade propylene and a small stream of polymer-grade ethylene when needed. Recycle streams still containing olefins are sent back to the main synthesis loop as additional sources of propylene. The catalysts for methanol synthesis and MTP process are supplied by CLARIANT, a leading catalyst supplier for the process industry.

Megaplant Shall Utilise Cheap Shale–Based Methane

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. The on-purpose production of propylene to supply the company’s North American operations would allow BASF to take advantage of low gas prices resulting from US shale gas production.

Hydraulisches Fracking im Barnett Shale in Texas (Bild: American Gas Association)

The investment would further strengthen BASF’s 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, and superabsorbent polymers for baby diapers.

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