China commissions first of 14 planned propylene units using UOP process

Honeywell's UOP announced today that China has commissioned the first of 14 planned propylene production units, using technology from UOP to help close the global propylene supply and demand gap.

China’s Zhejiang Satellite Petrochemical Co. became the first Chinese producer to start production of propylene using UOP C3 Oleflex process technology, which efficiently produces propylene from propane. 

Zhejiang Satellite Petrochemical is currently producing high-quality, on-spec product for acrylic acid and derivative production, according to UOP officials.

Traditionally, propylene is a byproduct of making ethylene. However, a shift in how ethylene is produced globally has meant less propylene byproduct is being produced, sparking investment in technology to create propylene from propane. 

Since 2011, UOP has licensed the C3 Oleflex process to more than a dozen producers to meet rising demand, with a majority of licensed capacity in China. 

“China’s propylene consumption accounts for more than 15 percent of worldwide demand and is growing at about 5 to 6 percent per year,” said Pete Piotrowski, senior vice president and general manager of UOP’s process technology and equipment business. “Oleflex technology has been demonstrated to have the lowest cash cost of production due to its efficiency, providing a significant operating advantage to our licensees, and we look forward to showcasing the commercial success of this technology in China.”

Zhejiang Satellite Petrochemical will produce 450,000 tpy of propylene at its facility in Pinghu City in Zhejiang Province. 

Zhejiang Satellite Petrochemical, formerly known as Zhejiang Julong Petrochemical Co. (ZJLPC), produces materials used in various markets, including aviation, automobile production, oil mining, health care and textiles.

“We were very pleased with the ease of startup of UOP’s Oleflex technology,” said Mr. Zhang Hongliang at Zhejiang Satellite Petrochemical.

“We chose the technology because it provides the lowest cash cost of production and best return on investment compared with all other technologies evaluated," he added. "UOP’s local service and support team has been a key driver for this project’s success.” 

Oleflex has been a leading technology for converting propane to propylene for more than 20 years.