New projects to boost China's PDH capacity up to 77% in 2024-2025

China is expected to see a significant rise in PDH capacities in 2024 and 2025, on the backdrop of lower initial investment and high propylene yield, as well as a secure and cost-effective source of propylene, which fits well with China's clean energy development path.

According to OilChem, a combined 7.26 million tonnes/year of new PDH units are expected to start up by the end of 2024, and 6.05 million t/y by the end of 2025.

This follows the recent commissioning of new capacities of 4.8 million t/y in 2023, alongside the delayed operation of some capacities into 2024.

For PDH units, a total of 13.31 million tonnes of capacity is expected to come on line by the end of 2025, rising the total PDH capacity in China to 30.58 million t/y, up 77% from 17.27 million tonnes of capacity by end 2023.

Nonetheless, the actual capacities that come on stream will be around 8-9 million t/y, rising about 50% from 2023's capacities, as the commissioning process of some projects is far behind expectations due to poor PDH margins and slow construction progress.

These projects include Fujian Yongrong New Material, Chuangui Energy Chemical, Shandong Wantong Petrochemical, Zhongke Hainan New Material, Yanchang Petroleum (Hainan) and Huizhou Yuxin Light Hydrocarbon Comprehensive Utilization Project, with a total capacity of 9.61 million t/y.

China PDH Commissioning Schedule in 2024 and 2025

Source: OilChem

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