Enterprise and Arkema sign propylene supply agreement
Mary Page Bailey
As part of its procurement policy for strategic raw materials, Arkema (Colombes, France; www.arkema.com) has reached an agreement for the supply of propylene with Enterprise Products Partners L.P., a leading U.S. midstream Energy Company.
Taking advantage of the development of shale gas in the United States, this contract secures a long-term supply (more than 10 years) of propylene produced by propane dehydrogenation (PDH) and will strengthen the competitiveness of the Coatings Solutions segment.
This contract will account for a significant part of Arkema’s propylene feedstock in the U.S. Propylene is a key raw material for acrylics, a major sector for Arkema, and where the group is a key player in the U.S.
Enterprise Products received the necessary permits for this project in May, 2014 and construction of the plant has now started. The PDH plant is due to be completed in first half of 2016. This agreement is fully consistent with Arkema’s growth strategy to continue its expansion in the United States.