US propylene market is expected to stay long in 2018 and 2019, before tightening up in the early 2020s as new derivative capacity comes online, a buyer said Sunday.
At least five new propylene-derivative units are in the works to start up in the next decade, while only two new on-purpose propylene capacities are expected to start up in the timeframe, a source said on the sidelines of the American Fuel and Petrochemicals Manufacturers annual conference in San Antonio.
Braskem America, Formosa Plastics, LyondellBassell and ExxonMobil Chemicals are each considering a new polypropylene facility in the US; however, only Braskem American and Formosa Plastics have made a final investment decision to move forward with their plans.
Braskem is developing a 450,000 mt/year PP plant in La Porte, Texas, with a scheduled 2020 start, the Brazilian company said in June.
Formosa Plastics is also building a 250,000 mt/year line at its existing Point Comfort, Texas complex.
In terms of new propylene capacities, only LyondellBasell and Formosa Plastics each are considering a new propane dehydrogenation unit.
Formosa Plastics new 600,000 mt/year PDH unit is slated to come online in 2020-2021, a company source has said. Market participants, however, said the PDH unit might have been shelved.
LyondellBasell is considering a new 725,000 mt/year PDH unit in the US Gulf Coast, which is said to come online near the mid-2020s, sources have said. The company hopes to to make a final investment decision by the end of 2018.
