The Dow Chemical Company (DOW) will construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, TX. This move comes as part of Dow’s previously announced comprehensive plan to further connect its U.S. operations with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas.
This decision marks another significant milestone in the Company’s strategy to further develop the competitive advantage for Dow’s Performance Plastics, Performance Materials and Advanced Materials businesses by expanding access to low-cost natural gas-based feedstocks, which are used in the production of Dow products that are essential to over a dozen consumer markets.
“The outlook for advantaged U.S. natural gas was a significant factor in Dow’s decision to invest $4 billion to grow our overall ethylene and propylene production capabilities in the U.S. Gulf Coast region,” said Jim Fitterling, Dow Executive Vice President and President of Feedstocks & Energy and Corporate Development.
Dow Texas Operations in Freeport is Dow’s largest integrated manufacturing site worldwide and the largest single-company chemical complex in North America. The new ethylene production unit project is currently on track for start-up in 2017, and Dow continues to develop feedstock supply arrangements for this new asset.