China’s Oriental Energy plans propane-to-propylene plant

15 September 2011 04:44  [Source: ICIS news]

GUANGZHOU (ICIS)--China’s Oriental Energy is planning to build a 1.2m tonne/year propane dehydrogenation (PDH) plant to produce propylene at Zhangjiagang in Jiangsu province, the company said on Thursday.

In a statement to the Shenzhen Stock Exchange, Oriental Energy said that it will form a joint venture with Jiangsu Huachang Chemical and Feixiang Chemical to operate the yuan (CNY) 4bn ($626m) plant.

Feixiang Chemical will have a 40% share in the new company and the remaining shares will be divided equally between Oriental Energy and Huachang Chemical.

An agreement to establish the joint venture, Yangzijiang Petrochemical, was signed on 14 September, according to the statement.

The plant will be built in two phases, each with a capacity of 600,000 tonnes/year, the statement said.

The first phase of construction is expected to start in the first half of 2012 and the plant is target to start operating by early 2015. The entire facility is expected to come on stream before 2017, a source from Huachang Chemical said.

The company will import propane to use as feedstock, the source said, without elaborating further.

($1 = CNY6.39)

By: Fanny Zhang
+65 6780 4359

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