18-03-2013
Dow enhances US gulf coast integration with new Idemitsu/Mitsui JV
The Dow Chemical Company announced today an initial agreement for a long-term ethylene off-take agreement with a new joint venture to be formed between Idemitsu Kosan Co., Ltd., and Mitsui & Co., Ltd., of Tokyo, Japan. Idemitsu and Mitsui will form the joint venture to construct and operate a world-scale, Linear Alpha Olefins unit on the U.S. Gulf Coast. This agreement marks the next milestone in Dow’s strategy to integrate cost-advantaged feedstocks to support the profitable growth of the Company’s high value Performance Plastics franchise. The joint venture will utilize an integrated supply of ethylene from Dow’s production grid on the U.S. Gulf Coast to produce Linear Alpha Olefins used as comonomers throughout Dow’s high value Performance Plastics franchise, and will contribute significant capital for these rights.
“Today’s announcement further illustrates Dow’s commitment to invest in high-return projects that deliver advantaged feedstocks for our differentiated, downstream derivatives, while simultaneously building strategic partnerships that drive economies of scale and improved capital efficiency,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Taken on the whole, positive disruptive trends in U.S. shale gas have led us to make different decisions about where and how we invest for global growth. Our comprehensive U.S. Gulf Coast investments will enable our enterprise to deliver higher and more sustainable value from our existing premier U.S. base to supply domestic and global growth.”
Dow is a large consumer of Linear Alpha Olefins and utilizes them within the Company’s Performance Plastics franchise for the production of high performance materials such as DOWLEX™, ELITE™, NORDEL™, AFFINITY™ and ENGAGE™. Dow expects the agreement with the JV will enable a long-term supply and purchase relationship for Linear Alpha Olefins, which will enhance Dow’s high value Performance Plastics franchise, better enabling it to serve several of the Company’s fastest growing market segments, including Packaging; Hygiene and Medical; Electrical and Telecommunications; Transportation, Sports and Leisure and Consumer Durables.
“This agreement highlights Dow’s commitment to further strengthen the competiveness of our high-value, performance-oriented Plastics businesses, as well as our aim to grow with our customers in North and South America,” said Jim Fitterling, Dow executive vice president. “The agreement with the joint venture is beneficial to the project economics and is a good example of the type of strategic projects that Dow is currently evaluating: As an investor in Dow’s Gulf Coast project, Idemitsu and Mitsui will receive ethylene integration benefits while improving the capital efficiency of the cracker from a Dow perspective. In addition, Dow secures a reliable, integrated, cost-advantaged source of comonomers for our Performance Plastics franchise.”
Location options for the Linear Alpha Olefins unit are currently being explored with final investment locations to be determined at a later date. Construction and start-up of the new unit is targeted for 2016.
The JV is in the Front End Engineering and Design (FEED) phase and will complete this work in 2014. Financial details are not being disclosed.
News Category:
-
Beyond processbook & PI vision: Exploring today’s industrial analytics tools
(Webinar) - In the Manufacturing 4.0 era, industrial organizations have more data at their fingertips than ever, offering the promise of higher production rates, more ...
04-06-2024
-
MOL inaugurates its polyol complex in Tiszaújváros
MOL's EUR 1.3 billion polyol complex in Tiszaújváros, boasting a capacity of around 200,000 tonnes of polyol per year, has been inaugurated. The ceremony, addressed ...
15-05-2024
-
NEXTCHEM completes the acquisition of GasConTec
Further to the announcement made on 4 March 2024, MAIRE announces that NEXTCHEM has finalized the acquisition of 100% of GasConTec GmbH, an innovative company specialized ...
15-05-2024
-
KBR awarded digital solutions contract by OCI
KBR announced today it has been awarded a contract by OCI Global to design and deploy its proprietary operator training simulator for OCI's 3,000 metric tonnes ...
13-05-2024
-
Worley awarded Bayou Bend CCS carbon capture and storage facility contract
We’ve been selected to design and evaluate CO2 gathering, handling and sequestration facilities located along the Gulf Coast in Southeast Texas. Bayou Bend ...
13-05-2024
-
Black & Veatch delivers feasibility study for Andes Energy LNG Terminal
Global liquefied natural gas (LNG) infrastructure solutions leader Black & Veatch has completed a feasibility study for the planned Andes Energy Terminal, LNG regasification ...
09-05-2024
-
Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC
Shell Singapore Pte Ltd, a subsidiary of Shell plc, has reached an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company ...
08-05-2024
-
Integrated Global Services recognized for role in mega turnaround
Integrated Global Services has been recognized as a major contributor to the successful Ras Tanura Refinery 2024 Mega Turnaround and Inspection for Saudi Arabian Energy ...
08-05-2024
-
Ebara Elliott Energy to provide compressor for SAF project in Thailand
Ebara Elliott Energy, formerly Elliott Group, announces it has been contracted to provide a motor-driven recycle compressor with a variable frequency drive (VFD) for ...
07-05-2024
-
ETH Zurich select hte to provide high throughput test system designed for CO2 electroreduction
hte – the high throughput experimentation company was awarded a contract by the technical university ETH Zurich to provide a high throughput test system designed for ...
07-05-2024