China’s Oriental Energy to hold majority stake in PDH plant
18 October 2011 08:42 [Source: ICIS news]
GUANGZHOU (ICIS)--?xml:namespace>China’s Oriental Energy will hold a larger stake in a proposed 1.2m tonne/year propane dehydrogenation (PDH) joint venture plant for producing propylene at Zhangjiagang, the company said on Tuesday.
Under a supplemental agreement signed on 16 October by the three partners of the project, Oriental Energy will hold a 56% stake as the project is expected to generate big profits due to a rise in the demand of propylene, it said in a statement to the Shenzhen Stock Exchange.
The other two partners, Huachang Chemical and Feixiang Chemical, will each hold a 22% stake, the statement added.
In an earlier agreement signed on 14 September, Oriental Energy and Huachang Chemical agreed to hold a 30% stake each, while Feixiang Chemical was to hold the remaining 40% stake.
Oriental Energy is planning to issue non-public stocks to finance the project, the statement said.
The project, in Jiangsu province, is expected to start operating in early 2015 with an initial capacity of 600,000 tonnes/year. The entire facility is expected to come on stream before 2017, according to the companies.
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