Oriental Energy to Invest Propane Comprehensive Utilization Project
According to sources, Oriental Energy signed a strategic cooperation agreement with the Maoming Municipal People’s Government to jointly build a 100 billion-grade industrial cluster in Daya Bay, with a total investment of 40 billion RMB in the start-up project.
According to the announcement released by Oriental Energy, there are three phases of the start-up project.
Phase I: 2*50kt/a liquefied hydrocarbon specialized terminals and storage tanks, 2 PDH units and 3 PP units with the total investment of 14 billion RMB.
Phase II: 2 PDH units and 3 PP units with the total investment of 10 billion RMB.
Phase III: Taking use of the by-products, such as ethane, propane and butane, of the 4 PDH units to build ethylene unit, butadiene unit and PE unit with the total investment of 16 billion RMB.
Oriental Energy is mainly engaged in the import, sales and deep processing of alkane resources and owns refrigerated resource terminals in Ningbo, Zhangjiagang and Taicang. The capacity of the PDH units at Oriental Energy (Zhangjiagang) New Material and Oriental Energy (Ningbo) New Material is 600kt/a and 660kt/a respectively. Furthermore, the 660kt/a PDH unit (phase II) at Oriental Energy (Ningbo) New Material will be put into operation in 2019. In South China, Oriental Energy only has refrigerated resource terminal in Qinzhou. Accordingly, this strategic cooperation will help Oriental Energy to take more market shares.
In South China, there will be two PDH units to be put into operation. Therein, the 600kt/a PDH unit at Shenzhen Grand Resource will be put into use in Q3, 2019, and the 450kt/a PDH unit at Guangdong Pengzun Energy Sources Development will be started at around the end of 2019. In H1, 2019, Guangdong imported 2,543kt of LPG resources, taking up 26% of the total. But most of the resources were used as local civil-use gas, and some of the resources flowed into Fujian, Hunan, Hubei and the surrounding markets.
With the development of the 4 PDH units in Maoming to be put into operation, the LPG import volume in Guangdong will see great increment, and Oriental Energy will take more market shares in the industrial-use gas and civil-use gas markets. Therefore, the competition in the imported LPG market in South China will become severer.
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