SP Chemicals plans to raise ethane use at eastern China petchem plant
SP Chemicals is studying plans to increase ethane use as feedstock at its petrochemical complex in eastern China's Jiangsu province to up to 90% from 75%, its CEO Chan Hian Siang said on Thursday.
"We are asking Technip to look into the possibility of using more ethane… up to 90%, they are still studying it," he said on the sidelines of the Asia Petrochemical Industry Conference.
The company expects to invest 400 MM to 500 MM yuan ($56 MM–$69 MM) in the project at Taixing city, Chan said.
Despite a trade war between Washington and Beijing, Chinese petrochemical producers are importing ethane from the United States as they battle shrinking profits and switch to the cheaper feedstock.
"At the moment, ethane is still cheaper than other feedstocks," Chan said, adding that the company imports ethane mainly from Enterprise Products Partners. He declined to say if the company had received a waiver for U.S. ethane imports.
China waived the 125% tariff on ethane imported from the United States, Reuters reported in late April. The two countries reached a truce in their trade dispute with a deal last week that will temporarily cut the massive tariffs they imposed on each other.
SP Chemicals is also building a 200,000-m3 ethane storage facility which will nearly double its storage capacity for the feedstock, Chan said.
The company plans to add five new very large ethane carriers (VLECs) by 2028, including three which are under construction, he added.
($1 = 7.209 Chinese yuan renminbi)
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