No new China PDH projects coming on stream in 2017-2018
Monica Wang
06-Jun-2017
Focus article by Monica Wang
SINGAPORE (ICIS)–China will take a breather in adding propylene capacity via the propane dehydrogenation (PDH) route this year and next year, according to data compiled by the China editorial team at ICIS.
High capital requirements have caused delays in implementing phase II PDH projects of a number of Chinese producers, according to industry sources.
Consequently, China’s imports of feedstock propane are not expected to grow from around 4.65m tonnes in 2016. The volume of feedstock imported is based on an 85% average operating rate of existing PDH units.
China currently derives 4.61m tonnes of propylene from PDH plants, the first of which started operation in September 2013. These plants account for less than 10% of the country’s overall propylene production.
An additional 6.35m tonne/year of propylene capacity from PDH units is currently in the pipeline, with the next plant due to come on stream in 2019. (Please see table below)
Tianjin Bohai Chemical Industry Group, the producer that put into operation China’s first PDH plant, decided to give up a plan to bring on stream a second 600,000 tonne/year PDH unit in mid-2018. Instead, the company would build a 500,000 tonne/year coal-to-olefin unit, according to a company source.
Industry sources said that the supply and demand gap for propylene in China – estimated at 2m tonnes for 2017 – is currently not big enough to require urgent investments in PDH plants.
Last year, the country imported 2.9m tonnes/year of propylene, according to official data.
China’s existing PDH units are currently running at a lower average run rate of 80%, with healthy operating margins pegged at about yuan (CNY) 1,500/tonne on average, industry sources said.
Any increase in demand may be covered by raising the utilisation rates of the plants, they said.
China PDH Projects | ||||
Company name |
Location |
Propylene capacity in thousand tonnes |
Start-up date |
Progress |
Tianjin Bohai Chemical Industry (Group) |
Tianjin |
600 |
12 Sept,2013 |
In operation |
Tianjin |
600 |
mid-2018 |
Cancelled | |
Ningbo Haiyue New Material Co |
Ningbo, Zhejiang |
600 |
Aug 2014 |
In operation |
Zhejiang Satellite Energy Co |
Pinghu, Zhejiang |
450 |
Aug 2014 |
In operation |
450 |
2019 |
Under construction | ||
Sanyuan Petrochemical |
Shaoxing, Zhejiang |
450 |
Aug 2014 |
In operation |
Yantai Wanhua Group |
Yantai, Shandong |
750 |
Aug 2015 |
In operation |
Zhangjiagang Yangtze River Petrochemical |
Zhangjiagang, Jiangsu |
600 |
May 2015 |
In operation |
Zhangjiagang, Jiangsu |
600 |
N/A |
Planned | |
Haiwei Group |
Hengshui, Hebei |
500 |
Sept 2016 |
In operation |
Huanghua, Hebei |
500 |
N/A |
Planned | |
Fujian Meide Petrochemical |
Fuqing, Fujian |
660 |
2019 |
Under Construction |
660 |
N/A |
Planned | ||
Oriental Energy |
Ningbo, Zhejiang |
660 |
H2 Oct 2016 |
In operation |
660 |
N/A |
Planned | ||
Caofeidian, |
660 |
N/A |
Planned | |
Tangshan, Hebei |
660 |
N/A |
Planned | |
Shenzhen Juzhengyuan |
Humen, Dongguan |
900 |
2019-2020 |
Foundation laid in August 2016 |
PDH C3 capacity (in tonnes/year) |
In operation |
Under construction |
In planning stage | |
Total |
4.61m |
2.01m |
4.34m |
Source: China editorial team at ICIS
($1 = CNY6.80)
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