'World's largest' PO/SM plant start-up only possible in late H1

05 February 2010 09:03  [Source: ICIS news]

SINGAPORE (ICIS news)--Zhenhai Refining and Chemical Co (ZRCC) and LyondellBasell have reverted back to the original schedule of starting up their joint propylene oxide/styrene monomer (PO/SM) facility in China’s Zhejiang province sometime in June, a source at LyondellBasell said on Friday.

Mechanical issues would prevent the plant from operating ahead of schedule, the source said, clarifying earlier expectations of a March start-up.

The plant in Ningbo - touted as the largest PO/SM facility to be built in the world - can produce up to 285,000 tonnes/year of PO and 620,000 tonnes/year of SM.

Its upstream naphtha cracker at the same site, operated by ZRCC has a nameplate capacity of 1m tonnes/year.

Construction of the cracker was completed in late December while PO/SM plant was completed in end January 2010, the source said.

“The PO/SM unit will complete its synchronization by the end of April and will be brought on stream if the cracker starts up on schedule,” he said.

A late-June start-up for the Ningbo PO/SM plant would suit the market just fine as downstream demand would have recovered by then, said a China-based trader in Mandarin.

“If the [PO/SM] unit starts up on schedule, it will be the exact period of time when downstream demand picks up. The start-up of this unit will not flood the PO market [with supply] but [will] satisfy the needs [of] the derivative sectors,” a Chinese trader said in Mandarin.

The PO/SM plant which uses the LyondellBasell’s PO technology will be the US major’s first petrochemical production facility in China.

The PO/SM project is a joint venture between ZRCC, a subsidiary of Sinopec and polymer giant LyondellBasell.

Other PO producers in Asia include Dow, Shell, Nihon Oxirane, AGC Chemicals and SKC Co.

With additional reporting by Peh Soo Hwee

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By: Ong Sheau Ling
+65 6780 4359

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