Propane Dehydrogenation Future Lands in Turkey

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Researched by Industrial Info Resources (Sugar Land, Texas)--Advanced Petrochemical Company (Al Jubail, Saudi Arabia) (2330.SE) signed a memorandum of understanding (MoU) with Bayegan (Istanbul, Turkey) in May of this year to construct a grassroot site in Adana, Turkey, to produce propylene and polypropylene. The joint venture is composed of Advanced Petrochemical, which holds 70%, and Bayegan, which holds 30%. The MoU expires December 31, 2012.

The site will use the propane dehydrogenation (PDH) process, which is an increasingly popular way to produce propylene. This is most likely because naphtha is less often being used as the feedstock to produce ethylene, so the by-product propylene is not being produced in the same quantity. Propane dehydrogenation produces the propylene from natural gases such as propane; the propylene then can be used as feedstock to produce polypropylene (PP). In a dehydro unit, the propane is processed on a fixed-bed of chromia-alumina catalysts, heated, and then run through reactors.

The new site in Adana has an estimated construction cost of between $800 million and $1 billion, and will include utilities and port facilties. Early planning is in the process, and construction is expected to begin mid to late 2013. Completion of the complex is targeted for late 2015, with operations in the first half of 2016.

The propane dehydro unit will produce approximately 500,000 metric tons per year of propane to feed the polypropylene unit, which will produce approximately 500,000 metric tons per year. The produced polypropylene will reduce the current amount of imported PP by 30%. Turkey will need to continue to expand overall chemical production to stay ahead of any trade deficit that will grow uncontrollably. Currently, Turkey's growth projection for the petrochemicals industry is 5% per year, making it very alluring to foreign chemical investors. Turkey's biggest drawback is lack of infrastructure, mainly energy.

Bayegan is an established diversified trading company with experience in the chemical sector. The company's first chemical plant was built by Samsung Saudi Arabia (Al Khobar, Saudi Arabia). This is Advanced Petrochemical's first overseas investment in a chemical plant. Advanced Petrochemical owns and operates a PDH and PP plant in Al Jubail, Saudi Arabia.

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