China’s Oriental Energy to issue new shares to fund PDH project

16 May 2013 04:59  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Oriental Energy will issue new shares to raise yuan (CNY) 840m ($137m) to partially fund its proposed propane dehydrogenation (PDH) project at Ningbo in Zhejiang province, the Chinese producer said on Thursday.

The company will be building two PDH units and downstream facilities at the site, with the total investment estimated at CNY3.8bn.

First phase of the project includes building a propylene capacity of 600,000 tonnes/year and a 400,000 tonne/year polypropylene (PP) capacity, the company said in a statement.

In the second phase, the propylene capacity will be doubled, while a 176,000 tonne/year of isopropyl alcohol/ethanol capacity will be added, it said.

No specific timeline was provided for project construction.

“The proposal needs to get shareholders and regulatory approvals, which are out of our control,” said a company official.

Meanwhile, Oriental Energy is also building a 1.2m tonne/year PDH facility at Zhangjiagang that is expected to come on stream next year, the official told ICIS.

($1 = CNY6.15)

By: Fanny Zhang
+65 6780 4359

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