PetroLogistics

What PetroLogistics does

PetroLogistics II LLC is a Houston-based petrochemical project developer that acquires, develops, and operates manufacturing, processing, and logistics assets for the North American petrochemical industry. The entity is owned by affiliates of Quantum Energy Partners and certain members of company management, following the 2014 sale of its predecessor operating company PetroLogistics LP to Flint Hills Resources. PetroLogistics' predecessor built and operated the first propane dehydrogenation (PDH) facility in North America on the Houston Ship Channel, which was the world's largest PDH plant when commissioned in 2010 and was sold in 2014; an earlier Louisiana midstream logistics subsidiary, PL Midstream, was sold to Boardwalk Partners in 2012. The current operating entity is led by Chairman David Lumpkins and President Nathan Ticatch, the latter having previously led construction and operation of the first North American PDH plant.

The company's core technology revolves around on-purpose propylene production via propane dehydrogenation, addressing the structural decline in co-product propylene from US petroleum refineries and heavy-feed ethylene crackers driven by the shale revolution. In July 2019, PetroLogistics II licensed Dow's proprietary fluidized catalytic dehydrogenation (FCDh) technology, which uses a fluidized catalytic cracking-based reactor design that management claims delivers significantly lower capital cost, lower energy consumption, and improved reliability versus conventional PDH processes. Its flagship active project is a planned 500 KTA propane dehydrogenation facility on the US Gulf Coast, in front-end engineering design as of the most recent disclosure with two alternative sites under evaluation. The technology stack combines catalyst-based dehydrogenation, pipeline transportation, and salt dome storage to serve downstream petrochemical offtakers.

PetroLogistics generates revenue (when operational) through B2B enterprise sales to major North American petrochemical producers, typically structured as project-based offtake agreements tied to PDH asset development rather than commodity spot sales. Capital is supplied primarily by Quantum Energy Partners, which together with management committed over $500 million in January 2018 to fund the project pipeline. The company operates as a lean sponsor-backed developer (11–50 employees) using a direct enterprise field-sales motion targeted at large petrochemical counterparties in the US Gulf Coast corridor, with no public pricing disclosure and no consumer-facing channels.

Name

PetroLogistics

Legal name

PetroLogistics II LLC

Website

http://petrologistics.com

Company type

Private

Founded year

2004

Operating status

Operating

Headcount range

11–50 employees

Ownership category

akta.pro rank

Product category

Petrochemicals – Propylene Manufacturing

NAICS

Petrochemical Manufacturing (32511), Petroleum and Coal Products Manufacturing (324)

SIC

Industrial Organic Chemicals (2860), Pipe Lines (No Natural Gas) (4610)

akta.pro primary industry

Base Olefins (Ethylene, Propylene, Butadiene) (IMAEADAA)

Keywords

• Propylene production
• Propane dehydrogenation
• Petrochemical manufacturing
• On-purpose propylene
• Petrochemical logistics

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Operations, Infrastructure, Supply Chain, Personnel, Technology or R&D

Revenue model

1. Petrochemical Manufacturing Operations: PetroLogistics generates revenue through developing, owning, and operating petrochemical manufacturing facilities. The company built and operated the first PDH facility in North America, producing propylene for sale to petrochemical companies.
2. Logistics and Storage Services: Revenue from providing mission-critical logistics services including pipeline transportation and salt dome storage for petrochemical industry participants in Louisiana.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

PetroLogistics II LLC is a Houston-based company focused on acquiring, developing, and operating petrochemical manufacturing, processing, and logistics assets in North America. It develops propane dehydrogenation (PDH) facilities for on-purpose propylene production, including a planned 500 KTA Gulf Coast PDH facility using Dow's proprietary FCDh technology. Historically, the firm also operated pipeline transportation and salt dome storage assets for ethylene, propylene, and other feedstocks via its PL Midstream subsidiary.

Product overview

PetroLogistics is a Houston-based company that acquires, develops, and operates petrochemical manufacturing, processing and logistics assets in North America. The company operates through two major divisions: PL Midstream (pipeline transportation and storage assets in Louisiana, sold to Boardwalk Partners in 2012) and PetroLogistics LP (the first PDH facility in North America, sold to Flint Hills Resources in 2014). The current operating entity, PetroLogistics II LLC, is developing a new 500 KTA propane dehydrogenation facility on the US Gulf Coast using Dow's proprietary FCDh technology. The company creates value through implementing creative solutions leveraging hardware, geography, commercial dynamics and technology for the North American petrochemical industry.

Differentiator

Problem solved

Functional benefit

Products and services

• 500 KTA Gulf Coast PDH Project Using Dow FCDh Technology A planned 500 KTA propane dehydrogenation (PDH) facility on the US Gulf Coast designed to produce on-purpose propylene for sale to petrochemical producers under offtake agreements, using Dow's proprietary fluidized catalytic dehydrogenation (FCDh) technology.

Quantifiable outcome

• First PDH plant in North America was largest in world when commissioned in 2010
• +1 more outcomes

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Three partnerships are on record, tiered core and minor.

• DowcoreTechnology or Integration · 15 July 2019PetroLogistics II LLC licensed Dow's proprietary fluidized catalytic dehydrogenation (FCDh) technology for construction of a 500 KTA propane dehydrogenation facility on the US Gulf Coast. The advanced FCDh technology uses a novel reactor design based on fluidized catalytic cracking and represents a significant advancement in PDH technology with lower capital cost and energy consumption.
• Boardwalk PartnersminorOthersPL Midstream was sold to Boardwalk Partners in 2012. PL Midstream provided mission-critical logistics services to the petrochemical industry in Louisiana with salt dome storage facilities and pipeline systems.
• Flint Hills ResourcesminorOthersIn 2014, PetroLogistics LP was sold to Flint Hills Resources, who continues to operate the PDH facility on the Houston Ship Channel that was the largest in the world when commissioned in 2010.

Scale indicators5 records

Recent moves8 records

Expansion highlights4 records

Direct peers

• INEOS Olefins & Polymers: INEOS is a global leader in propylene and polypropylene production, including on-purpose propylene assets, and competes with PetroLogistics for offtake customers in the US and international petrochemical markets.
• Flint Hills Resources: Flint Hills Resources acquired PetroLogistics LP in 2014 and continues to operate the original Houston Ship Channel PDH plant, making it a direct operator peer in US on-purpose propylene production.
• Braskem: Braskem is the largest polypropylene producer in the US and a major merchant propylene buyer; it is one of the closest direct peers to PetroLogistics as a North American on-purpose propylene producer serving PP and petrochemical customers.
• Enterprise Products Partners: Enterprise Products operates a PDH plant at Mont Belvieu, TX producing on-purpose propylene, directly competing with PetroLogistics in the merchant propylene market and overlapping on US Gulf Coast NGL/propane logistics.
• Dow Inc. Dow operates PDH plants in the US using conventional technologies and is the licensor of the FCDh technology being deployed by PetroLogistics II's 500 KTA project; it is both a strategic partner and a direct propylene/PDH peer.
• Formosa Plastics Corporation USA: Formosa operates PDH and polypropylene assets in the US Gulf Coast, competing with PetroLogistics on on-purpose propylene supply and integrated PP value chain positioning.

Broad incumbents

• LyondellBasell: LyondellBasell is one of the world's largest polyolefins producers with extensive propylene output via steam crackers and refining; it is a broad incumbent competing with PetroLogistics across the propylene and PP value chain.
• Westlake Corporation: Westlake produces propylene and polypropylene through integrated chlor-vinyls and olefins operations on the US Gulf Coast, representing an incumbent competitor in the merchant propylene market.

Regional players

• Boardwalk Pipelines: Boardwalk Pipelines acquired PL Midstream in 2012, taking over PetroLogistics' legacy salt dome storage and ethylene/propylene pipeline assets along the Mississippi River Corridor, and is the natural regional pipeline/storage peer for PetroLogistics' historical midstream business.

Emerging players

• TPC Group: TPC Group produces on-purpose propylene via TBA/IB dehydrogenation at its Houston facility and is a smaller, niche merchant propylene producer with overlapping technology and customer overlap with PetroLogistics.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/pl-propylene-llc

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about PetroLogistics