JX Nippon Oil & Energy Idles Propylene Production in Kawasaki

Plant Shutdown in Japan JX Nippon Oil & Energy Idles Propylene Production in Kawasaki

13.10.2015Editor: Dominik Stephan

Japan's JX Nippon Oil & Energy has decided to shut down its 140,000 tons/year propylene unit in Kawasaki, due to bad production margins. The on–site naphtha–cracker is still running unaffected.

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Low margins take their toll: JX Nippon Oil & Energy stops propylene production unit in Kawasaki
(Picture: © SeanPavonePhoto; © fotogestoeber - Fotolia.com)

Tokyo/Japan – As of reports by industry web portal Downstream Today, JX Nippon has shut down the propylene production at Kawasaki on Monday for an indefinite time. Especially the strong competition from new propane dehydrogenation (PDH) units in China and South Korea have led to an oversupply of propylene.

The naphtha cracker at Kawasaki is nevertheless, unaffected by this decision, as cracker margins are healthy. With its diversified range of petrochemical products from ethylene to propylene and butadiene, the unit profits from recent ethylene demands.

Sunset for Japan's petrochemical industry? Caught between megaplants in China and shale gas in the US, the 'Country of the Rising Sun' could be ripe for restructuring measures. (© SeanPavonePhoto; © fotogestoeber - Fotolia.com)

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