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
Location |
Owner |
Process Type |
Capacity (Kt/y) |
Commissioning Timeline |
Zhejiang, East China |
Formosa Chemicals Industries (Ningbo) |
PDH |
600 |
End 2023 - 2024 |
Fujian, South China |
Fujian Meide Petrochemical |
PDH |
900 |
Q1 2024 |
Fujian, South China |
Quanzhou Guoheng Chemical |
PDH |
660 |
Q1 2024 |
Shandong, East China |
Shandong Zhenhua Petrochemical |
PDH |
750 |
2024 |
Zhejiang, East China |
Ningbo Kingfa Advanced Materials |
PDH |
600 |
Q1 2024 |
Shandong, East China |
Jinneng Chemical (Qingdao) |
PDH |
900 |
H1 2024 |
Shandong, East China |
Shandong Zhonghai Fine Chemical |
PDH |
450 |
2024 |
Fujian, South China |
Fujian Yongrong New Material |
PDH |
900 |
2024 |
Guangxi, South China |
Chuangui Energy Chemical |
PDH |
750 |
2024 |
Zhejiang, East China |
Zhejiang Yuanjin New Materials |
PDH |
750 |
Q4 2024 |
Shandong, East China |
Wanhua Chemical Group |
PDH |
900 |
2025 |
Jiangsu, East China |
Jiangsu Fenghai High-Tech Materials |
PDH |
600 |
2025 |
Jiangsu, East China |
SP Chemicals (Taixing) |
PDH |
900 |
2025 |
Shandong, East China |
Shandong Wantong Petrochemical |
PDH |
250 |
2024 |
Hainan, South China |
Zhongke Hainan New Material |
PDH |
600 |
2025 |
Hainan, South China |
Yanchang Petroleum (Hainan) |
PDH |
600 |
2025 |
Guangdong, South China |
Huizhou Yuxin Light Hydrocarbon Comprehensive Utilization Project |
PDH |
600 |
2025 |
Zhejiang, East China |
Oriental Energy (Ningbo) New Materials |
PDH |
1,000 |
2025 |
Guangdong, South China |
Oriental Energy (Maoming) Phase II |
PDH |
600 |
2025 |
Source: OilChem
Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com