Qixiang Tengda Chemical to Build a New Storage

Qixiang Tengda Chemical to Build a New Storage

According to sources, Zibo Qixiang Tengda plans to build a wholly-owned subsidiary at Laizhou Port, Yantai City, Shandon Province to develop the coastal feedstock storage with the self-owned fund of 0.2 billion RMB, and the total investment is about 0.8 billion RMB.

As we all know, Zibo Qixiang Tengda Chemical plans to build the 200kt/a MMA unit and the 450kt/a PDH unit project, and the company will expand the capacity of PDH unit from 450kt/a to 700kt/a, based on the future company development the market research. With the expectation for the increment in the propane demand, if Zibo Qixiang Tengda Chemical continues to purchase feedstock from the surrounding traders and refineries, it will be tough for the company to satisfy its demand.

Zibo Qixiang Tengda Chemical plans to invest at the Laizhou terminal, mainly in order to satisfy the storage of imported LPG. In recent years, with the improvement in China’s deep-processing demand, it became more difficult for China-origin LPG to satisfy the market demand. More and more market participants paid close attention to imported LPG resources in response to the high quality and low prices. Moreover, many market participants, including state-owned refineries, intended to import LPG, but they did not have related facilities and storage at terminals.

Currently, China’s most importers are concentrated in southern China, and most of imported LPG resources are used as civil-use gas. In northern China, there are few importers. Therein, Wanhua Chemical Group imported a large amount of LPG resources. In 2017, Wanhua Chemical Group imported 1,090kt and 920kt of propane and butane respectively. If the Laizhou Terminal project to be put into operation successfully, Zibo Qixiang Tengda Cheimcal will import about 700-800kt of propane resources.

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