Enterprise Products Partners and petrochemical giant LyondellBasell announced the plans to add a second polypropylene plant named PDH 2 to Enterprise’s Mont Belvieu complex. Enterprise already has a long-term propylene supply deal with LyondellBasell.
The contract is large enough to support the construction of another propane dehydrogenation plant at its natural gas liquids processing complex in Mont Belvieu, Enterprise reported.
"Demand growth for these propylene-based products is strong and PDH 2 will provide cost-advantaged supply assurance to our customers, enabling expansion of their downstream businesses to satisfy this global demand," Enterprise CEO Jim Teague said in a statement.
The plant will be able to convert 35,000 barrels of propane per day into 1.65 billion pounds per year of polymer grade propylene, a chemical that is key ingredient in making plastics.
"As we aim to meet the growing demand for our products, ensuring a long-term supply of feedstock is critical," LyondellBasell CEO Bob Patel said. "These agreements allow us to leverage Enterprise's construction expertise, operating experience and robust network as we continue to deliver an outstanding value proposition for our customers."