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China will start three new large-scale steam crackers in August, which will boost demand for petrochemical feedstocks such as naphtha and LPG
.
Liaoning Baolai Chemical Co.
, Ltd.
("Liaoning Baolai") will be the first company to put into operation the cracker, followed by state-controlled Sinopec Zhanjiang Refinery and Sinochem Quanzhou Branch
.
According to market sources, LyondellBasell, a 50:50 joint venture between global petrochemical company LyondellBasell and Liaobaolai, started trial operation on its steam cracker on July 27
.
The cracker is located in Panjin City, Liaoning Province, Northeast China, and has an annual production capacity of 1.
1 million tons/year of ethylene and 690,000 tons/year of propylene
.
The company plans to start up downstream PE and PP units and crackers in an initial phase, fed by purchased ethylene and propylene
.
Polaris-LyondellBasell's new cracker will use in part commercial propane, which is estimated to make up about 44% of its cracker feedstock
.
The joint venture's sales agreement calls for Polaris to sell LLDPE and styrene, while LyondellBasell will sell HDPE and PP
.
The other two crackers are scheduled to start production in August
.
Also state-controlled Sinochem Group is now planning to start up its Quanzhou naphtha cracker by the end of August
.
The cracker has an ethylene capacity of 1 million tons/year and a propylene capacity of 500,000 tons/year, and its petrochemical derivative units include 100,000 tons/year of EVA, 400,000 tons/year of HDPE, and 20/450,000 tons/year of HDPE.
propylene oxide/styrene (PO/SM), 580,000 t/y PP and 120,000 t/y butadiene capacity
.
Sinopec Zhanjiang will buy LPG for its new cracker, while Sinochem will buy LPG from the Quanzhou refinery
.
LPG may account for 10% of the cracker feed
.