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Home , Wang Yan (Jin dynasty), Zhangjiagang

China’s massive PDH expansion plans partly driven by LPG traders Of the total 18.2m tonnes/year of new propane dehydrogenation (PDH) capacities currently being planned in China, 16% are driven by companies that are traditionally in the LPG trading business. Proposed new PDH units involving LPG traders are more likely to move forward because most LPG traders are equipped with LPG import facilities, such as port jetties and LPG storage tanks. LPG imported into China consists mainly of propane and butane, and the former is a feedstock for PDH units. China’s PDH units consumed 4.6m tonnes of propane in 2017, according to ICIS data. Their combined propane consumption is expected to reach 5.0m tonnes in 2018, driven by higher operating rates amid increased margins. Propane demand from Chinese PDH units is expected to be as strong in 2019 should PDH margins stay healthy. By Yan

China’s New PDH Units Under Planning from 2020 onwards

Haiwei Petrochemical Hengshui, 500,000 tonnes/year Undetermined Jinneng Science and Technology Sino Giant Group Technology Under planning New Material Caofeidian, Hebei , Shandong 600,000 tonnes/year 900,000 tonnes/year Undetermined Undetermined Planning, integrated with a A project agreement was inked refining project with an authority at Qingdao Xihaian New Area on 28 February 2018. Major project for Shandong new and old energy conversion Minggang Chemical Rizhao, Shandong 600,000*2 tonnes/year Senyue (Wudi) International Under planning Binzhou, Shandong A major project of replacing old 600,000 tonnes/year growth drivers with new ones in Undetermined Shandong. invested by Shandong Wudi Lubei Hi-end Chemical Dongming Petrochemical Recycle Economic Industry Zone is Hebei in the list of a Shandong provincial Haiyi Fine Chemical government planning document. Shandong Zibo, Shandong 250,000 tonnes/year Satellite Energy Under planning , Jiangsu A major project of replacing old growth drivers with new ones in 1.5m tonnes/year Shandong. invested by Shandong Undetermined Wonfull Petrochemical As the second phase project of Lianyungang Xuxu programme

Oriental Energy Lianyungang, Jiangsu 660,000 tonnes/year Jiarui Chemical Undetermined , Jiangsu Under planning 450,000*2 tonnes/year Undetermined Oriental Energy EIA report was released (Zhangjiagang) New Material to gather public opinion Zhangjiagang, Jiangsu in January 2018. 600,000 tonnes/year Undetermined Henan Nanpu Environmental Under planning Jiangsu Yanchang China Technology Gas Chemical , Henan Taixing, Jiangsu Haitian Petrochemical 200,000 tonnes/year 600,000*2 tonnes/year , Jiangsu Undetermined Undetermined 600,000 tonnes/year Environmental Impact Undetermined Assessment (EIA) report was The signing ceremony for the light hydrocarbon deep Progress has been slow; released to gather public latest news indicate a jetty opinion in February 2018, processing project was held on 29 September 2018. will be located in Lanshan saying the plant will use port in Rizhao city. The plant domestically-produced propane will be built in , Jiangsu as feedstock. province, with construction expected to start in 2019. Huatai Shengfu Polymer Ningbo, Zhejiang 600,000 tonnes/year Under planning An EPS contract was signed Formosa Plastics (Ningbo) with Tianyi Science Ningbo, Zhejiang & Technology in February 600,000 tonnes/year 2018. It is an ethane/propane Undetermined hydrogenation unit, mainly Under planning based on domestic feedstocks.

Oriental Energy Ningbo, Zhejiang 660,000 tonnes/year 2020 Under construction Huahong New Material Jiaxing, Zhejiang 450,000 tonnes/year Undetermined Information about EIA was published in May Satellite Energy 2018. Pinghu, Zhejiang 450,000 tonnes/year End 2018-early 2019 Construction to be Zhejiang completed by end 2018 Meide Petrochemical Fuqing, Fujian Fujian 660,000 tonnes/year H1 2019 Under construction

Guangdong Guohan Energy Technology Meide Petrochemical Chaozhou, Guangdong Fuqing, Fujian 600,000*3 tonnes/year 660,000 tonnes/year Undetermined Undetermined Project record-filing was Under planning completed in January 2018.

Juzhengyuan Hainan Humen, Dongguan 600,000 tonnes/year Q2 2019 Under construction Pengzun Energy Chemical , Guangdong 450,000 tonnes/year Juzhengyuan Humen, Dongguan Yangpu Aoli Petrochemical Undetermined A project agreement was inked with 600,000 tonnes/year Yangpu, Hainan an authority at Zhanjiang Economic Undetermined 300,000 tonnes/year and Technological Development Zone Progress has been slow; latest news Undetermined in September 2017. Bidding work was indicate a jetty will be located in Lanshan Sinopec and Aoli Petrochemical scheduled to start in H2 2018. port in Rizhao city. The plant will be signed feedstock supply built in Pizhou, Jiangsu province, with agreement in Q3 2017. construction expected to start in 2019.

PDH Capacity list (m) tonnes/year Track the Chinese LPG markets 25 300% with the weekly report PDH Unit capacity YOY The ICIS China LPG Weekly Report offers weekly 20 250% assessment of prices and market commentary to keep you up to speed on the domestic LPG markets 200% with all of the following: 15 n International and domestic price assessments 150% n Market overview on import/export activity 10 n China’s apparent consumption of LPG 100% n Utilisation rates of China’s major LPG terminals 5 n Supply/demand fundamentals 50%

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