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A detailed description of the direct oxidation routes for the production of propylene oxide has been added.

#directoxidation #propyleneoxidation #propyleneoxide #hppo




The chlorohydrin technology type for propylene oxide production has been added.

#chlorohydrin #hydrogenchloride #chloralkali #propyleneoxide





The description of propylene oxide has been updated.

#propyleneoxide #propylene #oxidation





Sumitomo Propylene Oxide Cumene (POC) method has been added

#propyleneoxide #sumitomo #cumene #cumenehydroperoxide #cumenemethod #poc





Aerial view of the Jiangyin Port City Economic Zone
| Baidu, Feb 9, 2025

The Petrochemical Revolution: How Fujian Zhongjiang's Backward Integration Across the C3 Value Chain Exemplifies Strategic Transformation in Global Petrochemicals

The global petrochemical industry is undergoing a fundamental transformation as companies across the plastic conversion sector embark on unprecedented backward integration strategies, fundamentally reshaping the traditional boundaries between refining, chemicals production, and downstream processing. This strategic shift represents more than incremental expansion; it signals a complete reimagining of how value chains operate in an era of supply chain volatility, margin compression, and the relentless pursuit of operational efficiency.

The Economics of Scale and Integration

The modern petrochemical landscape has become defined by the economics of mega-scale operations, where companies are discovering that vertical integration offers compelling advantages over traditional market-based transactions. Already, more than 30% of the world's refineries are now integrated with commodity petrochemicals, creating sites that benefit from both diversified product portfolios and enhanced operational synergies. This integration trend has been particularly pronounced in Asia, where approximately 70% of polypropylene plants by capacity are now integrated back to steam cracking or propane dehydrogenation sources of propylene.



Fuzhou Wanjing PDH3 began operation on May 15, 2025 | Shaanxi Chemical Construction, via oil.in-en.com

The financial rationale driving this integration is clear when examining the transaction cost economics that govern petrochemical operations. Companies are finding that the coordination efficiency gained through vertical integration significantly reduces the transaction costs associated with intermediary relationships, while simultaneously providing greater control over quality standards and supply chain reliability. The scale advantages are particularly evident in propane dehydrogenation operations, where single-unit capacities have expanded dramatically, with most recent facilities now reaching the impressive nameplate capacity of 900 thousand tonnes per year of propane.

China's Strategic Transformation and Global Implications

China's chemical industry expansion has become the defining force reshaping global petrochemical dynamics, with the country pursuing aggressive backward integration strategies that extend from plastic conversion all the way to crude oil refining. Chinese enterprises in the polyester value chain, including companies like Hengli, Shenghong, and Hengyi Petrochemical, have established massive refinery and integrated petrochemical complex projects that demonstrate the strategic imperative of securing upstream feedstock sources. This transformation is exemplified by companies that initially established themselves as textile manufacturers but have systematically integrated backward through purified terephthalic acid (PTA) production, paraxylene (PX) manufacturing, and ultimately into crude oil refining.



Ethylene production map centered on Eurasia | Source: portfolio planning PLUS

The scale of China's capacity expansion defies traditional market logic, with ethylene nameplate capacity increasing from approximately 26 million tonnes per year in 2019 to 54 million tonnes by 2024, more than doubling over the six-year period, with a further capacity increase expected to reach 66 million tonnes by 2025 according to industry estimates. China's ethylene and propylene capacity in 2025 is forecast to be 121% and 179% more than local demand respectively, creating structural oversupply that forces Chinese producers to seek international markets for their excess production. This capacity buildup has been facilitated by China's demonstrated ability to construct petrochemical facilities approximately 40% faster than international competitors, with paraxylene plants being completed in around 30 months compared to 48 months elsewhere, while also maintaining capital costs that are approximately 20% lower than the rest of Asia.

The Fujian Zhongjiang Model: From BOPP to Integrated Petrochemicals

The evolution of Fujian Zhongjiang Petrochemicals Group represents a paradigmatic case study in strategic backward integration within the C3 value chain. The company's transformation from its origins as a biaxially oriented polypropylene film producer to a fully integrated propane-to-polypropylene operator demonstrates how specialized downstream companies can achieve remarkable operational synergies through systematic upstream expansion. Beginning as "the world's film king" in the BOPP sector, China Flexible Packaging Group recognized the vulnerability inherent in depending on volatile propylene markets and embarked on a methodical integration strategy that now spans from LPG import terminals through propane dehydrogenation to polypropylene production and finally to BOPP film manufacturing.



Fuzhou Propane Cryogenic Tank Storage | Seatao, May 29, 2023


This integration model has enabled the company to achieve unique operational advantages, including circular hydrogen utilization where byproduct hydrogen from propane dehydrogenation fuels adjacent chemical units, reducing operational costs by approximately 15%. The company's current integrated structure encompasses:

This level of integration allows the company to maintain 40% captive BOPP consumption while simultaneously supplying regional injection molding clusters, demonstrating how backward integration can create both supply security and market flexibility.

Technology and Process Innovation Driving Integration

The technological foundation enabling these massive integration projects has evolved significantly, with process innovations making large-scale operations both technically feasible and economically attractive. In polyethylene production, the latest advances exemplified by Univation's 800,000 tonnes per year UNIPOL PE Process and Chevron Phillips Chemical's MarTech single-loop slurry process deploying 1,000,000 tonnes per year HDPE lines demonstrate how reactor engineering and process optimization have redefined the limits of scale and flexibility. These technological advances are not merely incremental improvements but represent fundamental breakthroughs in managing the intense heat and mixing requirements of high-throughput polymerization while maintaining operational reliability and efficiency. Polypropylene production has witnessed comparable scale expansions, with Fujian Zhongjiang's integrated facilities demonstrating the progression from initial 500,000 tonnes per year production lines to the current world-scale 600,000 tonnes per year units utilizing LyondellBasell's Spheripol technology.



Fujian Meide Petrochemical Fuzhou complex - running Oleflex plant in the foreground, Catofin plant to be started up later in 2025 behind it | Baidu, Nov 2023

More dramatic scale increases are now seen at the origin of the C2 and C3 value chains. As we previously reported, ethane cracking facilities are now reaching ethylene production capacities of 2.1 million tonnes per year. The propane dehydrogenation sector is experiencing a similar technological evolution, with catalyst systems lying at the heart of process economics. The scale of PDH operations has now reached unprecedented levels, with individual units achieving 900,000 tonnes per year capacity, as demonstrated by Fujian Meide's facility that commenced operations in May 2025 and Fuzhou Wanjing's unit scheduled for startup later in 2025, both utilizing Lummus CATOFIN technology with specialized Clariant catalysts. Advanced PDH technologies now routinely operate at temperatures between 480-600°C under low pressure conditions, achieving propylene yields and selectivity that make large-scale operations economically viable even in regions with higher feedstock costs. The development of these technologies has been crucial in enabling companies to pursue backward integration strategies, as the improved economics of PDH operations make it feasible for downstream plastic producers to justify the substantial capital investments required for upstream expansion.

Strategic Implications and Future Trajectory

The acceleration of vertical integration in the petrochemical sector reflects broader strategic imperatives that extend beyond simple cost optimization. Companies are recognizing that integration provides critical protection against supply chain disruptions, market volatility, and competitive pressures that have intensified in recent years. The consolidation dynamics within different specialty chemical segments are driving companies to focus their portfolios while simultaneously optimizing their business models through strategic integration.



Zhongjing Petrochemical Group facilities in Jiangyin Industrial Zone | Chenhr


The implications of this integration trend extend to global trade patterns and competitive dynamics, as integrated producers gain significant advantages over standalone operations. The economic benefits of integration become particularly pronounced during market downturns, when integrated refinery-petrochemical sites consistently outperform their fuels-only peers due to their diversified revenue streams and operational flexibility. This performance differential is driving further consolidation as companies recognize that scale and integration have become essential requirements for long-term competitiveness in the evolving petrochemical landscape.

The future trajectory of the industry suggests that this integration trend will continue to accelerate, driven by the fundamental economics of large-scale operations and the strategic advantages of supply chain control. As companies like Fujian Zhongjiang demonstrate, successful integration requires not merely the ability to execute large capital projects, but the strategic vision to create synergistic value across the entire value chain while maintaining operational excellence at each stage of production. The companies that master this integration challenge will likely emerge as the dominant players in the next phase of global petrochemical industry evolution.


This article includes market data from WoodMckenzie, S&P Global, ICIS, Argus Media and other sources.

#refinerieintegration #backwardintegration #ethylene #propylene #valuechain #lyondellbasell #lummus #uop #honeywell #sinopec #technip




Yantai, China | April 25, 2025

Kuwait’s Petrochemical Industries Company (PIC), a subsidiary of Kuwait Petroleum Corporation (KPC), has acquired a 25% stake in Wanhua Chemical (Yantai) Petrochemical Co., Ltd., marking the largest Kuwaiti investment in China’s petrochemical sector to date. The deal, valued at $638 million, gives PIC a significant interest in a cluster of advanced petrochemical units in Yantai, including facilities producing propylene oxide, tert-butyl alcohol, acrylic acid, and butyl acrylate.

This strategic move is designed to diversify PIC’s product portfolio and expand its footprint in the fast-growing Chinese market, while giving Wanhua improved access to Gulf feedstocks and a strong international partner. The partnership also underscores a broader industry trend: Gulf energy companies are shifting from traditional oil exports to integrated, value-added investments in Asia’s downstream sector.

The agreement was signed in Yantai by PIC CEO Nadia Al-Hajji and Wanhua Chemical President Qu Guangwu, in the presence of senior executives from both companies and Kuwait Petroleum Corporation (KPC). Citi acted as financial advisor and Ashurst as legal counsel for PIC.

The PIC-Wanhua alliance is expected to accelerate innovation, operational efficiency, and sustainable growth for both partners, positioning them to capitalize on Asia’s expanding demand for high-value petrochemicals.

#pic #wanhua #kuwait #china #yantai #propyleneoxide #acrylates #oxochemicals











Rotterdam, Netherlands, 11 Feb 2025 - Chemical manufacturing giant LyondellBasell has announced plans to shut down its propylene oxide (PO) and styrene monomer (SM) production facility at Maasvlakte in the Rotterdam port area. The closure marks a significant shift in the company's European operations and will impact the regional petrochemical landscape.

According to company officials, the decision comes after a comprehensive strategic review of LyondellBasell's global asset portfolio, with the Maasvlakte plant deemed no longer economically viable in the current market environment. The facility, which has been operational since the early 2000s, has faced increasing pressure from newer, more efficient production sites in Asia and the Middle East.

Industry analysts point to several factors contributing to the closure, including high European energy costs, increasing global competition, and shifting market demands. The company will reportedly maintain its other Dutch operations, including facilities in Rotterdam's Botlek area.

Propylene oxide and styrene monomer are key ingredients used in the production of polyurethanes, plastics, and synthetic rubbers found in numerous consumer and industrial products. Market observers suggest that LyondellBasell will likely meet European demand for these products through its remaining facilities and strategic supply agreements.

The plant is expected to complete a phased shutdown by the end of the year, following appropriate decommissioning procedures and environmental protocols.

#posm #smpo #lyondelbasell #propyleneoxide #styrene #dutchplant #thenetherlands #plantclosure


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CNOOC Shell Huizhou Petrochemical Complex in Daha Bay, Huizhou, China

January 15, 2015 | BEIJING | Shell China

CNOOC Shell Petrochemicals Limited (CNOOC Shell), a joint venture between Shell Nanhai Private Limited and CNOOC Petrochemical Investment Co., Ltd., has made the final investment decision to expand its petrochemical complex at Daya Bay, Huizhou, southern China.

The project will include the construction of a third ethylene cracker with a planned annual capacity of 1.6 million tons, a key component in the production of plastics, as well as a series of downstream derivative units, including linear alpha olefins.

The investment will also build a new facility for the production of high-performance specialty chemicals such as polycarbonates and carbonate solvents that are essential to everyday life.

Linear alpha olefins can be used to produce detergent alcohols and synthetic lubricant base stocks. Polycarbonates can be used to make impact-resistant plastics, replacing carbon-intensive steel, while carbonate solvents are used in lithium batteries, which are crucial for the electric vehicle sector and energy storage.

Designed primarily to meet China’s domestic demand, the new facility will produce a wide range of chemicals used in the agriculture, industry, construction, healthcare and consumer goods sectors.

The investment will enhance CNOOC Shell’s competitiveness by expanding its product value chain, promoting its further integration with existing chemical plants, and promoting its development of stronger innovation capabilities to meet the rapidly growing customer needs in the Chinese market.

"For more than two decades, CNOOC Shell has been providing high-quality products to the Chinese market and has become one of the largest Sino-foreign petrochemical joint ventures in China," said Huibert Vigeveno, Director of Downstream and Renewables Business of Shell Group.

“This new investment is a key enabler for CNOOC Shell’s strategic transformation towards higher-end and differentiated chemicals. It is consistent with Shell Chemicals & Refining’s strategy of pursuing targeted business growth in strong regions. It is also a testament to our strong partnership with CNOOC.”

The expansion is expected to be completed in 2028.


#olefins #ethylene #propylene #butenes #steamcracking #olefinplant #linearalphaolefins #lao #polycarbonate #shell #cnooc #jointventure #china #refining


29th May 2024 | Successful Signing! Significant Achievements in the Southeast Asian Market

Hualu Engineering & Technology Co., Ltd., and CC6, subsidiaries of China National Chemical Engineering Group Corporation (CNCEC) jointly signed an EPCC general contract for a 300 KTPA Propane Dehydrogenation to Polypropylene (PDH/PP) project with Vietnam Phu My Plastic Company (PMP) in Hanoi, Vietnam on September 23rd.

The project is located in the CAIMEP Industrial Park in Ba Ria-Vung Tau Province, Vietnam. The main construction includes a 300 KTPA PDH unit, a 300 KTPA PP unit, utility facilities, as well as plant-wide systems and auxiliary production facilities involving design, procurement, construction, commissioning, and startup.

12th March 2019 | Plastics Manufacturer In Vietnam Taps Honeywell Technology To Produce Propylene

Phu My Plastics Production JSC to become first in Vietnam to use Honeywell’s Oleflex™ propane dehydrogenation technology

DES PLAINES, Ill., March 12, 2019 — Honeywell (NYSE: HON) announced today that Phu My Plastics Production JSC will use Honeywell UOP’s C3 Oleflex™ technology to produce polymer-grade propylene at its facility in Vietnam. The plant will help meet growing domestic demand for plastics in Vietnam and other countries in Southeast Asia. This is the first award for Honeywell’s propane dehydrogenation technology in Vietnam.

Honeywell UOP will provide technology licensing for the Oleflex process, the process design package, proprietary and non-proprietary equipment, on-site operator training, technical services for startup and continuing operation, and proprietary catalysts and adsorbents.

21st May 2019 | Phu My Plastics Production JSC selects LyondellBasell’s Spheripol technology for its new 300 KTA polypropylene plant in Vietnam

ROTTERDAM, the Netherlands, May 21, 2019 – LyondellBasell (NYSE: LYB) today announced that Phu My Plastics Production JSC. (PMP), has selected the Spheripol polypropylene process technology for a 300 KTA plant in Vietnam.


#phumyplastics #pmp #vietnam #polypropylene #propylene #oleflex #spheripol




Aug 28, 2024 | Offshore Technology

The venture, estimated to cost more than $10bn (Rs839.48bn), is in discussion with ONGC and its subsidiary HPCL.

The Chatterjee Group (TCG), a US-based private equity firm, is seeking a partnership with Indian state-run companies for an oil-to-chemicals project in Cuddalore, Tamil Nadu, reported Bloomberg, citing sources. TCG is in discussion with Oil & National Gas Corporation (ONGC) and its subsidiary Hindustan Petroleum Corporation (HPCL). The proposal suggests the state companies collectively hold a 49% stake in the project – estimated to cost more than $10bn – while TCG, which operates in India through Haldia Petrochemicals, would retain the remaining 51% share. TCG’s project aims to produce 3.5mtpa of ethylene and propylene.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. Haldia Petrochemicals currently operates a petrochemical plant in eastern India and is developing the nation’s largest integrated phenol project in West Bengal’s Haldia.

The potential investment reflects India’s focus on expanding petrochemical capacities, providing essential materials for a range of products from consumer goods to automotive components. As per government estimates, the demand for chemicals and petrochemicals in India is projected to triple to $1trn by 2040. Oil refiners, including Reliance Industries led by Mukesh Ambani, are shifting their production focus towards petrochemicals over traditional fuels to cater to the increasing demand for specialty plastics and chemicals used in solar panels and electric vehicles.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. In other development, ONGC has recently been granted government approval for an additional investment of $2.19bn into its petrochemical unit ONGC Petro Additions.

#haldia #chatterjeegroup #india #cotc #oiltochemical #hplc #ongc #reliance #ethylene #propylene #petrochemicals #oilrefining #petroadditions





AXENS News, 17th June 2009, retrieved via the Internet Archive from 3rd Nov 2011.

Nghi Son Refinery & Petrochemical LLC (NSRP) has awarded Axens the basic engineering design contracts for some of the units of the new 200,000 barrel per day (bpd) refinery which is to be constructed in Thanh Hoa province located in the Northern part of Vietnam.
Axens will supply the following process technologies for the refinery:

R2R™ - Residue Fluidized catalytic cracking (RFCC) unit;

Prime-D™ - Gas Oil desulfurization unit;

Prime-K™ - Kerosene desulfurization unit.

The refinery units will be provided with the latest advanced technologies making this one of the most modern refinery complexes in the world. The facility is scheduled and targeted to be operational in 2013.

The RFCC unit will incorporate advanced features to efficiently crack residue feed to maximize gasoline and propylene production. Polymer-grade propylene will be supplied to a downstream polypropylene unit. Axens’ RFCC is part of the FCC Technology Alliance between Axens, Shaw, Total and IFP.

Axens is a leading provider of clean fuels solutions. Axens’ desulfurization technologies are the benchmark for ultra-low sulfur middle distillate production. Both desulfurization units will employ the latest high activity hydrotreating catalysts and high performance reactor internals.

___________________
R2R, Prime-D, Prime-K are proprietary commercial names of Axens.

Nghi Son Refinery & Petrochemical LLC
Nghi Son Refinery and Petrochemical Limited Liability Company (NSRP) is a Joint Venture Company formed by Vietnam Oil and Gas Group, Vietnam; Idemitsu Kosan Co., Ltd, Japan; Kuwait Petroleum Europe B.V., Netherlands and Mitsui Chemicals, Inc., Japan.

#axens #rfcc #nsrp #vietnam #gasoline #propylene #gasoil #kerosene #desulfurization




Picture: Indian subcontinent refineries, via ppPLUS

India’s dependence on imports to meet its requirements of basic petrochemicals, including polymers, is only expected to rise, despite projects – under implementation and on the drawing boards. This is partly because the historical baggage of poor capacity builds will take time to catch up with rising demand.

In the last few years, however, India’s public sector refiners have climbed on the petrochemicals bandwagon, seeking value-added outlets for refinery streams. They have invested in aromatics (for feeding the polyester value chain), propylene (for polypropylene, PP, and some other chemicals notably, oxo-alcohols and acrylate monomers), linear alkyl benzene (LAB), a key detergent raw material, and a few other projects. And more are to come in the near-term.

There are several commonalities amongst the firm projects. For one, the emphasis seems to be on building the C3 (propylene) value chain. This is not surprising as FCC propylene offers a simple, low-cost route to the olefin and one that can be conveniently retrofitted into existing refinery operations. There is also an overwhelming emphasis on PP production, which may not be wise, as it runs the risk of overbuild should demand growth not pan out as anticipated.

There are other propylene derivatives that can be considered, and these merit attention if not by the refiners themselves then by third party investors for whom it will be more worthwhile. Much will hinge on the commercials of the olefin supply arrangement, but such business models are widely followed, including here in India, let alone in other countries.

Importantly, the government needs to recognise that the chemical industry as a key enabler of modern living, and not a nuisance to be constrained through regulation and red-tape. The priority must be on developing well-developed clusters where not just the petrochemical industry, but also the broad chemical industry – including the fine and specialty chemical industries, wherein India’s competitiveness is well recognised – can locate and start operations in double-quick time. Clusters are efficient and safe locales where the industry can thrive, as several countries have amply shown.

India needs a much larger and more diversified chemical industry than it has now. The former it seems is happening. Not so sure of the latter. The herd mentality to investments needs to change. Those who have dared to do so – and there are a few examples – have been amply rewarded. More need to emulate, not imitate, them!

Ravi Raghavan, 12 Nov 2024, Linkedin post.

#india #petrochemicals #chemicals #valuechains #propylene #fcc #refinery #polyester #aromatics #olefins #polypropylene #acrylics #lab #chemicalindustry #indianchemicals #IOCL #BPCL #HPCL #RelianceIndustries #investment #specialitychemicals #finechemicals #oilrefining #polymers #ethylene #competitiveness





On Oct 1st, 2024, Technip Energies announced that the Long Son Petrochemicals Co., Ltd. (LSP) olefins plant in Long Son Island, Ba Ria-Vung Tau province, Vietnam, passed its final performance acceptance test.

Technip Energies provided licensing, engineering, procurement, construction, commissioning, start-up and initial operation for the 1,350,000 tonnes/year cracker. As Vietnam’s first olefins plant, the flexible feed cracker, can utilize both naphtha and liquified petroleum gas (LPG) feeds to produce ethylene, propylene, and butadiene.

The plant successfully started up end 2023 to reach its full capacity shortly after the start-up and pass its first performance test in February 2024. The plant, which broke ground end 2018, includes Technip Energies’ licensed ethylene technology, including Ultra Selective Conversion (USC®) furnaces preferred for high selectivity and low cost, and the Heat-Integrated Rectifier System®, preferred for energy efficient ethylene recovery.

However, Listed Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, has suspended operations at its Long Son Petrochemicals (LSP) complex in order to cope with high production costs and the impact of a downturn in the global petrochemical market.

The suspension, slated to last for at least six months, began in mid-October, only roughly two weeks after LSP commenced commercial operations on Sept 30, with a production capacity of 74,000 tonnes.

A resumption of operations will mainly depend on the spread, according to SCG.

The petrochemical complex uses naphtha, which is a product of fossil fuels, as a key raw material to produce high density polyethylene (HDPE), but the prices of naphtha are expensive.

"The spread between naphtha and HDPE prices is US$300 per tonne because of a slowdown in the global petrochemical market," said Sakchai Patiparnpreechavud, chief executive and president of SCG Chemicals. "If the spread increases to $400 per tonne, we will consider resuming operations at LSP."

The suspension does not mean SCG Chemicals will stop investing in this petrochemical complex, he said.

SCG Chemicals plans to upgrade LSP, enabling it to use ethane, a colourless, odourless, gaseous hydrocarbon, as a raw material because it is cheaper than naphtha.

Mr Sakchai said the company will spend $700 million on the new investment, especially to build an ethane storage facility.

#technip #scg #siamcementgroup #longson #naphtha #lpg #steamcracker #ethylene #propylene #butadiene #olefins #hdpe #ethane #storagefacility









Juzhengyuan Technology Co., Ltd. (Grand Resource) in DongGuang, China has been fully modelled. The site converts propane into 1.2 million tonnes of propylene and 50,000 tonnes of hydrogen; the propylene is further converted into 1.2 million tonnes of polypropylene. Technologies employed are Catofin PDH from Lummus and Unipol PP from W.R. Grace.

#propane #dehydrogenation #pdh #propylene #polypropylene #grandresource #juzhengyuan #dongguan #hydrogen







Message has a thread







Haldia Petrochemicals, a company based in Kolkata, India, produces polymers and chemicals.

The company has decided to invest in an oil-to-chemicals project in Tamil Nadu.

ABOUT THE PROJECT:
☑ Capacity - 3.5 million tonnes of ethylene and propylene
☑ Cost - $10 Billion

BENEFITS:
Ethylene and propylene are used to make
☑ Shopping bags
☑ Car parts
☑ Water pipes

Navanit Narayan, CEO of Haldia Petrochemicals, said:
"The project will convert crude oil into chemicals to meet the growing demand for polymers in the country."

Source: Governance TamilNadu Linkein Post, April 1st, 2024

#india #oiltochemicals #ethylene #propylene