Borealis moves to next phase for new propane dehydration plant

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Photo by Borealis Kallo, Belgium

After concluding a pre-FEED feasibility study in June 2017, Borealis has now announced that it will move to the FEED-phase for the company’s new, world-scale propane dehydrogenation (PDH) plant. The facility is planned to be located at the existing Borealis production site in Kallo, Belgium. 

The company said the choice of site was made due to the excellent logistical position and experience in propylene production and handling. Borealis has selected Honeywell UOP’s Oleflex technology for the new plant. This technology is widely used and is a reliable and sustainable choice for on-purpose propylene production.

“The project has taken major positive steps forward during the feasibility phase,” explained Thomas Van De Velde, Borealis Vice President Hydrocarbons & Energy. “Most of the critical uncertainties have been cleared, paving the way for a successful FEED.”

Nonetheless, the final investment decision will not be taken until the third quarter of 2018, after completion of the FEED.

Start-up of the PDH plant, which has a targeted production capacity of 740 KT per calendar year, has, however, already been scheduled for the beginning of 2022.

“The decision to move to the FEED phase is the last step before the final investment decision,” said Markku Korvenranta, Borealis Executive Vice President, Base Chemicals.

"It illustrates our commitment to the project as well as our conviction that the investment is needed in Europe.”

Oiltanking Antwerp Gas Terminal has been agreed upon as the long-term logistics partner for the handling of propylene and propane as well as for the construction of a new 135,000-m³ propane storage tank. The produced hydrogen will be sold to Air Liquide under a long-term agreement. Both agreements are subject to the positive final investment decision.

Borealis continues to cooperate closely with various authorities and stakeholders in Flanders and Belgium, including the Port of Antwerp, to secure the necessary support package.

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