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China Market Insider Why is There a PDH Plant Construction Boom in China?

Author / Editor: Henrik Bork* / Ahlam Rais

Since the end of the corona lockdowns in China in spring 2020, the propane dehydrogenation (PDH) industry there has been expanding like never before. More than 30 new propane dehydrogenation plants with a capacity of more than 30 million tons per year are currently under construction in China or are planned for the coming years.

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PROCESS regularly reports on the Chinese chemical and pharmaceutical market with the format ‘China Market Insider’.
PROCESS regularly reports on the Chinese chemical and pharmaceutical market with the format ‘China Market Insider’.
(Source: ©sezerozger - stock.adobe.com)

Beijing/China – Contributing to the increasing popularity of dehydrogenation technologies compared to other propylene generation methods such as naptha cracking or catalytic cracking is primarily its cost-effectiveness. With lower initial investment, high propylene yield can be generated at high temperatures but comparatively low pressure.

Demand for propylene continues to grow in China, and China's political leadership is also looking to gradually replace imports with domestic production. The massive surge in investment in China's PDH sector is, therefore, due to both market and political factors.