PDH Project at Grand Resource Largely Completed Construction

In 2018, the duty-paid cost of propane showed an uptrend Y-O-Y. However, the profits at PDH units remained high, as the prices of its downstream products increased. In Q4, 2018, the duty-paid cost of propane directly dropped. Up to the end of December 2018, the duty-paid cost of propane in South China was RMB 3,493/mt, and the mainstream dealing prices in Shandong were RMB 7,750-7,850/mt. Therefore, the gross profits at PDH units remained favorable. According to SCI’s statistics, the average gross profit at PDH units reached RMB 1,654.29/mt, up RMB 363.7/mt or 28.18% Y-O-Y.

In 2019, the PDH project at Shenzhen Grand Resource will be put into operation, and the demand for imported propane will reach 319kt or so, calculated at the operating rate of 90%. Meanwhile, the 450kt/a PDH unit at Guangdong Pengzun Energy Sources Development will be put into operation. Accordingly, SCI reckons that the demand for imported propane will increase by 600kt in South China.

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