Petchem demand to boost China's 2H LPG imports.
Petrotahlil - Chinese LPG demand from the petrochemical sector is expected to increase significantly in this year's second half, with it forecast to rise to 1.3mn t/month from 756,000 t/month in the first half as new projects boost operations.
The surge in demand is the result of additional LPG feedstock requirements for six new projects that have or are due to increase operations in the second half.
Zhejiang Petrochemical (ZPC) and Zhejiang Huahong's propane dehydrogenation (PDH) units started operations in July. ZPC's 600,000 t/yr PDH unit was running at 80pc and is expected to consume 48,000t of propane this month, while Zhejiang Huahong's 450,000 t/yr PDH unit was operating at 40pc of capacity and is expected to consume 18,000t.
Bora Chemical's 1.1mn t/yr ethylene cracker started operations in early August and is expected to consume 70,000-90,000 t of LPG this month.
Fujian Meide's 660,000 t/yr PDH unit is planning to start up in October and is expected to consume 66,000 t/month of LPG as feedstock at full capacity. Oriental Energy's 660,000 t/yr PDH unit is expected to start operations in this year's final quarter, which will also consume 66,000 t/month at full capacity. The Ningbo plant will have two underground caverns for refrigerated storage each of 600,000m³ capacity.
Wanhua Chemical's 1mn t/yr ethylene cracker, which will use 200,000 t/month of propane at full capacity, is also planning to start up in the last quarter of the year.
Sinochem's 600,000 t/yr PDH project was scheduled to start in the second half of 2021 but this has now been pushed back to the second quarter of 2022 because project delay caused by the impact of Covid-19.
The increase in Chinese LPG demand from the petrochemical sector is expected to slow in 2021 when only three new projects are projected to start up. These projects will require 132,000 t/month of LPG, or an additional 10.3pc of demand from expected levels at the end of 2020.
Jinneng Chemical in Shandong is planning to start up its 900,000 t/yr PDH unit in April 2021. The plant will have 600,000m³ of refrigerated storage capacity. Shandong Huifeng Haiyi Petrochemical's 250,000 t/yr PDH unit is scheduled for a start-up in the final quarter of 2021, while Henan Nanpu Technology's 166,000 t/yr PDH unit is due to start at the end of 2021.
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Source : Argus
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