The French company, Arkema, has reached a deal with Enterprise Products Partners, the American midstream energy company, for the supply of propylene.
As a result of the development of shale gas currently taking place in the United States, the contract secures a long-term supply (over a decade) of propylene produced by propane dehydrogenation (PDH) and will strengthen the competitiveness of the coating solutions segment.
The new agreement will now account for a large portion of Arkema’s propylene feedstock in the US. Propylene is a key raw material for acrylics, a major sector for Arkema and where the group is big player in the US.
In May 2014, Enterprise Products received the required permits for this project and construction of the plant has already begun. It is due to be completed during the first half of 2016. This new agreement reflects Arkema’s growth strategy to continue its expansion in the US.