BASF Selects Texas as Potential Site for Methane-to-Propylene Complex

   By Monica Houston-Waesch 
 

FRANKFURT--BASF SE said Thursday it has selected Freeport, Texas as a potential site for its methane-to-propylene complex in the U.S., but the project still pends approval by the executive board next year.

BASF has contracted Air Liquide to provide basic engineering services for the complex. BASF said it will use Air Liquide's proprietary Lurgi MegaMethanol and methanol-to-propylene technologies.

In the past, BASF has said it is considering investing about $1.4 billion in a new natural gas-to-propylene conversion complex on the U.S. Gulf Coast, allowing it to exploit cheap shale gas.

The plant would have annual capacity of around 475,000 metric tons of propylene and would be the company's largest single investment to date, BASF reiterated Thursday.

Separately, BASF confirmed in February plans to build an ammonia plant with Norway's Yara International ASA at BASF's site in Freeport. BASF will own a 32% stake in that facility, with total capital investment estimated at about $600 million, according to the company.

Write to Monica Houston-Waesch at [e-mail]

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