New butane deep-processing capacity in Shandong to further tighten LPG supply

Zhenhua New Materials in Dongying, Shandong successfully started up its isobutane dehydrogenation unit paired with a MTBE joint plant on July 6. The start-up will increase the procurement for liquefied petroleum gas (LPG) and further exacerbate the current supply shortage situation.

On July 6, 2026, Zhenhua New Materials in Dongying, Shandong successfully commissioned its 425,000 t/y isobutane dehydrogenation unit and supporting 660,000 t/y MTBE joint facility, marking a new addition to Shandong's butane deep-processing sector. As a core player in the Dongying Port C4 industrial chain, this is the second