BASF picks Air Liquide technology for new Texas methane-to-propylene unit

BASF has made progress in its plans to build a world-scale methane-to-propylene complex on the US Gulf Coast, the company announced on Thursday.

The company has selected Freeport, Texas, as the potential site, where it will use Air Liquide's proprietary Lurgi MegaMethanol and methanol-to-propylene (MTP) technologies. 

BASF has contracted Air Liquide to provide basic engineering services for this gas-to-propylene complex.

The plant is planned to have a production capacity of approximately 475,000 tpy of propylene. This project would be BASF's largest single-plant investment to date and is subject to final approval in 2016 by the BASF executive board. 

The Freeport site was founded in 1958 as the first BASF manufacturing facility outside of Europe. With more than 800 full-time employees, the Freeport site is one of two BASF Verbund sites in North America and uses propylene in its manufacturing processes. 

BASF says the on-purpose production of propylene to supply the company's North American operations would allow it to take advantage of low gas prices resulting from US shale gas production. 

The investment would further strengthen BASF's backward integration into propylene and grow its propylene-based downstream activities, leading to a stronger market position in North America, according to company officials.