PDH production resumption drives up propane demand _热点资讯_HOME

China's propane demand has been increasing since April, primarily due to the restart of PDH and other alkane deep processing plants with the end of the spring maintenance season, learned by OilChem.

2023-2024 China Propane Processing Volume

PDH production resumption drives up propane demand

Source: OilChem

As of April 18, the propane demand from the chemical sector was 63,500 tonnes per day, an increase of 15.66% compared to the end of March.

The rise was attributed to the production resumption of many PDH and mixed alkanes dehydrogenation plants, including Shandong Shenchi Chemical, Anqing Taihengfa Petrochemical Fujian Meide Petrochemical Phase II and Formosa Plastics (Ningbo). In addition, Liaoning Bora Petrochemical and Luqing Petrochemical increased the feedstock propane usage in their steam crackers, and many other enterprises lifted their own operating loads along the improvement in processing margins, thus propelling the increase in propane usage.

Data from OilChem showed that the PDH operating rates have increased to more than 60% currently, bolstered by rising processing margins amidst low feedstock costs.

2024 PDH Operating Rates and Profits

PDH production resumption drives up propane demand

Source: OilChem

Looking ahead, there are still several propane deep processing enterprises planning to resume the operation over April-May, with a total capacity of 3.71 million t/y, and the operating rate will rise to over 70%. OilChem expects that the daily consumption of propane in the chemical sector will increase to 75,000 tonnes.

2024 PDH Plants Maintenance Schedule

Enterprises	Plants	Capacity (Kt/y)	Start	End
Liaoning Kingfa Sci.&Tech.	PDH	600	Jan 7	H2 Apr
Jinneng Chemical (Qingdao)	PDH	900	Mar 12	Early May
Oriental Energy (Ningbo) New Materials	PDH Phase II	660	Mar 19	H2 Apr
Jiangsu Ruiheng New Material Technology	PDH	600	End Mar	H2 Apr
Jiangsu Sierbang Petrochemical	PDH	700	Mar 28	May
Shandong Jingbo Petrochemical	Dehydrogenation of Mixed Alkanes	250	Mar 29	May

Source: OilChem

Moreover, Shandong Zhonghai Fine Chemical, Jinneng Chemical (Qingdao) Phase II, Zhenhua Petrochemical and Quanzhou Guoheng Chemical, with a total capacity of 2.76 million t/y, are planned to put their PDH plants into production in the second quarter, and then the domestic propane consumption will further increase.

Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com

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