Fluor to build new Dow plants in Texas

Fluor Corp. will engineer and construct several new Dow Chemical Company facilities in Freeport, Texas, as part of Dow’s $4 billion expansion there.

The engineering and construction giant said Thursday that it had won the contracts for the Dow projects, which are inspired by low-cost American feedstocks produced from shale drilling.

Fluor, based in Irving, Texas, will perform engineering, procurement and construction for Dow’s planned $1.7 billion ethylene production plant in Freeport, as well as a propane dehydrogenation unit and associated power, utilities and infrastructure upgrades.

“Fluor has had a strong and long-standing relationship with Dow, supporting some of the industry’s most challenging and innovative projects,” Peter Oosterveer, president of Fluor’s energy & chemicals group, said in a statement. “This is a significant endeavor by Dow to process hydrocarbons from the domestic shale formations, and we are pleased to continue our support of their efforts.”

Dow recently announced a new set of plants to be located along the Gulf Coast as part of its $4 billion expansion inspired by shale, but the company has not yet specified where the identified facilities will be located.