Petrotahlil-The engineering, procurement, construction management (EPCM) contract also includes building the requisite utilities and interconnections at an existing Borealis production site in Kallo, Belgium.
The PDH unit will have a production capacity of 750 kilotonnes per annum (ktpa), which according to Borealis will be the largest of its kind in the world.
PDH is a vital process step in the production of propylene, a key raw material for plastics.
Borealis will be employing Honeywell UOP’s Oleflex technology at the new PDH plant, which is scheduled for start-up in mid-2022.
This technology is widely used and is a reliable and sustainable choice for on-purpose propylene production, Borealis noted.
The Kallo location was selected due to its “excellent logistical position, its experience in propylene production and handling and the synergies with the existing PDH unit”, Borealis added in a statement.
Borealis originally announced its plans for the construction of €1bn PDH unit in October last year.
The Austrian polyolefin manufacturer is also expanding its polypropylene production in Kallo, raising current capacity by 80ktp to 380ktpa by mid-2020.
Additionally, the company has approved the execution of a front-end engineering design (FEED) study to expand its PP operations in Beringen, another Belgian town.
Borealis operates two propylene production units in Beringen, with a combined capacity of 380 ktpa. The new FEED study will investigate increasing production capacity by 250-300 ktpa.
The final investment decision on the Beringen project is expected by the end of 2019 and the start-up by mid-2022.