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Dow Chemical awards Freeport Ethylene to Technip

Technip signs FEED contract for Dow Texas Operations

October 2012, The Dow Chemical Company (Dow) selected Technip from France for the front end engineering and design (FEED) of its world scale ethylene project on the Gulf Coast, Texas, USA.

Dow is the world largest manufacturer of olefin and polyolefin products.

Based on ethylene cracking, the production costs are directly related to the market prices of the source of supply.

Among the ten other petrochemical companies planning ethylene cracker in the USA, Dow aims at to be first to take advantage from the shale gas as the actual most competitive and sustainable source of supply for the petrochemical industry.

To optimize the synergies with its other downstream chemical activities, Dow decided to build this new ethylene plant in its Gulf Coast Freeport facilities in Texas.

Actually the Dow Texas Operations located in Freeport represent 20% of Dow global production and 44% of of its sales on the US market.

With already 4,200 employees and 3,000 contractors working on site on daily base, Dow can benefit from the actual infrastructures to integrate this new ethylene plant on fast track at minimum extra costs.

From FreeportDow will also supply its downstream facilities in Louisiana.

The capital expenditure for this project is estimated to $4 billion.

In April 2012, Dow announced to build this olefin complex to produce:

– 1.5 million t/y Ethylene

 – 750,000 t/y Propylene

With this Dow Texas Operations expansion project, Dow is planning to:

 – Build new greenfield ethylene cracker in Freeport, Texas

 – Add two on-purpose propylene production units also in Freeport with the first one to start operations in 2015

 – Restart the idle steam cracker in Hahnville, Louisiana

 – Revamp and upgrade the feedstock handling system in Freeport and in Plaquemine, Louisiana to improve sourcing flexibility.

Dow selects Technip and Honeywell-UOP licenses

Dow selected the Honeywell-UOP’s proprietary C3 Oleflex TM technology for the propane dehydrogenation process to covert shale gas derivated propane into polymer-grade propylene.

Over the last ten years, Freeport is the fourth greenfield ethylene plant awarded by Dow to Technip for FEED services.

With the recent acquisition of Shaw Energy and Chemical (ex Stone and Webster) Technip is the world largest ethylene licensor and contractor.

According to the contract signed with Dow,  Technip will provide the:

 – FEED work on the ethylene plant

 – Engineering and procurement services for the cracking furnaces

Technip will execute the contract from its office in Claremont, California, USA.

With 70% of its ethylene production concentrated in the Gulf CoastDow intends to take the best advantage of its local facilities and competitive source of supply available in USA.

As part of the actual process of re-industrialization of the US economy, this Freeport Ethylene project will also provide Dow more capacities to meet the increasing demand for Performance Plastics, Performance Materials and Advanced Materials businesses.

To be built in different steps ,Dow purchased already the long lead-time equipment for the first on-purpose propylene production unit to be completed in 2015.

Then according to the FEED contract signed with TechnipDow expects the new greenfield Freeport ethylene cracker and associated olefin plant to reach completion in 2017.

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