USA: Capacity Expansion SNF to Invest 1.2 Billion Dollars to Meet Polyacrylamide Demand
SNF has plans to have a total emulsion-grade PAM production capacity of 1 million Mt/year in the U.S. by the end of 2020. With an aim to support this move, the company is actively investing in upstream monomer production capabilities.
Georgia/United States – In the last 2 years, SNF has added 75,000 Mt/year of powder-grade PAM production capacity globally to match the increased demand for EOR (Enhanced Oil Recovery) applications. By the end of 2020, the company will add another 75,000 MT/year.
The new capacity of 150,000 Mt/year is spread across several regions, thus providing easy access to the firm’s products. At the same time, through new investments and debottlenecking, SNF added 500,000 Mt/year of production capacity for emulsion-grade PAM within and 100,000 Mt/year outside the U.S.
This substantial increase is mainly driven by demand within the U.S. hydraulic fracturing (fracking) market as well as emerging fracking demands outside the U.S. This year, in the U.S., SNF will complete an additional emulsion-grade PAM expansion of 100,000 Mt/year by early Q4. The company’s goal is to have a total emulsion-grade PAM production capacity of 1 million Mt/year in the U.S. by the end of 2020.
To support this growth in polymer production, the firm continues to invest in upstream monomer production capabilities as well. The cationic monomer expansion in China is complete, bringing an additional 40,000 Mt/year of Adame to the market. While in the U.S., the firm will invest in the new Adame monomer capacity bringing an additional 50,000 Mt/year capacity over the existing global capacity of 160,000 Mt/year by the end of 2022.
Acrylamide monomer expansion continues in each region as PAM production volumes grow. In the U.S., SNF will add 100,000 Mt/year (expandable to 200,000 Mt/year) in 2021. For organic coagulants, the company has doubled its global capacity of Polydadmac and Polyamines to support the future demands of both product lines.