Shenzhen Grand Resource's 1,200kt/a PDH Unit Lauched

The 2*600kt/a PDH-PP project phase I at Shenzhen Grand Resource started on October 31. After the project was constructed, it would fill up the vacancy of PDH unit in Guangdong. Meanwhile, it would further develop the imported LPG value in South China.

Profile

This PDH unit would adopt the Catofin technology from Lummus Company, and the profile was as follows:

Project name: Shenzhen Grand Resource Co., Ltd. 1,200kt/a PDH-PP Project Phase I.

Construction location: Lisha Island Work Zone, Shatian Harbour District, Humen Port, Dongguan City.

Construction unit: Shenzhen Grand Resource Co., Ltd.

Construction nature: Newly-constructed project.

Relied on the existing imported resources, this project would further excavate the value of propane.

According to the chart, the gross profit of PDH unit from January to October 2017 performed well, and the average gross profit was about RMB 1,613.23/mt, up RMB 418.08/mt or 39.98% from 2016. The highest gross profit was RMB 2,353.75/mt, which appeared on July 13, 2017, and the lowest gross profit was RMB 784.92/mt, which appeared on April 20, 2017.

In terms of the alkylation units, the annual average profit of alkylation units was RMB -13/mt in 2017. In H1, 2017, the alkylation units largely suffered profit losses, and the average profit was about RMB -125/mt. From late June, the units started to gain profit. However, as the prices of C4R2 were high from Q4, 2017, the alkylation units suffered great profit losses for a long time.

Therefore, the profit of PDH units was handsome. Meanwhile, there was no PDH units in South China, and all propane resources in South China were sold for civil-use matched with butane, and the profit was about RMB 200/mt.

Besides, Shenzhen Grand Resource will cooperate with Dongguan Jovo Energy and acquire the imported LPG via subpurchasing LPG or renting freezers, which will stimulate the circulation of the imported LPG and create a win-win situation eventually.