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Arkema Signs Propylene Supply Agreement in the U.S.

Contract secures a long-term supply of more than 10 years

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By: DAVID SAVASTANO

Contributing Editor, Coatings World and Ink World, Coatings World and Ink World Magazine

As part of its procurement policy for strategic raw materials, Arkema 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 U.S., 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 Coating 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. and the world’s third largest player.
 
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.

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