Quantum Energy Partners and Stonecourt Capital LP have announced the formation of PetroLogistics II LLC, with founders David Lumpkins and Nathan Ticatch.

PetroLogistics II, headquartered in Houston, Texas, plans to continue the strategy of its predecessor, PetroLogistics Company LLC. The newly formed company will acquire, develop and operate petrochemical manufacturing, processing and logistics assets in North America.

Quantum, Stonecourt and members of the PetroLogistics management team have collectively made initial capital commitments to the company in excess of $500 million.

The PetroLogistics team is led by Lumpkins as chairman, Ticatch as president and Randy Miller as VP of engineering and operations.

Path of PertoLogistics

Prior to the formation of PetroLogistics II LLC, the PetroLogistics team developed the first propane dehydrogenation facility in North America which at the time was also the largest in the world.

That business, PetroLogistics LP, became a NYSE listed company in 2012 and was sold to Flint Hills Resources, a subsidiary of Koch Industries, Inc., in 2014. Previously, the PetroLogistics team also acquired and significantly expanded an extensive system of pipeline transportation and storage assets under the name PL Midstream, which provided mission critical logistics services to the petrochemical industry in Louisiana. PL Midstream was sold to Boardwalk Partners in 2012.

Lumpkins and Ticatch said, “We are excited to be partnering with Quantum and Stonecourt as we continue our long-term strategy of bringing creative ideas to the market and putting them into practice in support of the needs of the North American petrochemical industry.”

Canada petrochem coming

Inter Pipeline Ltd. (ticker: IPL) recently received help from the Canadian Government to build a world-scale integrated propane dehydrogenation (PDH) and polypropylene (PP) plant with a price tag of $3.5 billion.

The facilities will be collectively referred to as the Heartland Petrochemical Complex. The $3.5 billion superstructure is designed to process 22,000 BPD of propane into 525,000 tons per year of polymer grade propylene.

U.S. majors building plants

In November Shell Chemical Appalachia subsidiary of Shell (ticker: RDS.A) announced the official start of the main construction phase of its major petrochemicals complex in Potter Township, Pennsylvania. Construction will continue until commercial production which is expected to begin early next decade.

Shell said it would begin four processing units – an ethane cracker and three polyethylene units. The ethane cracker will be the largest part of the facility with more than 200 major components and 95 miles of pipe. The site will include a 250-megawatt natural gas-fired power plant, which will produce electricity and steam for the facility. About a third of the electricity produced will help supply the local electricity grid.

The petrochemicals complex will use ethane from shale-gas producers in the Marcellus and Utica basins to produce 1.6 million metric tons of polyethylene per year.

Polyethylene is used to make many products, from food packaging and sports equipment to furniture.

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