Making a new leap forward as an energy & gas chemical company
SK Gas has been pushing ahead with its PDH business by leveraging its LPG sourcing capabilities, and promoting its vision to strengthen its presence in the international energy and gas chemistry industry, through creating a synergetic relationship between the PDH business and established LPG businesses.
PDH refers to propane de-hydrogenation, which represents a process or facility to produce propylene through dehydrating propane.
The price of propane is expected to stabilize downward, as production will increase with the new shale gas exploitation in the U.S, and the surplus is likely to be shipped to Europe and Asia.
Also, together with ethylene, propylene has been widely used as a base material in the petro-chemical industry, while demand has been steadily growing, thanks to growth trends in relevant industries.
SK Gas has already established and operated LPG storage terminals with world class capacity and has access to industrial infrastructures established by other affiliates of SK Group, which indicates that SK Gas is in optimum business condition to carry out its PDH business.
It is expected that if the production of propane increases through new shale gas exploitations and international prices are stabilized accordingly, the competitiveness of PDH processing, where propane is used as the main material, will increase significantly.
The construction of PDH processing units will be completed in 2014 and commercial operation is expected to begin at the beginning of 2016.
Recently, SK Gas signed an MOU with APC (Advanced Petrochemical Corporation) in Saudi Arabia, to establish a joint venture company. SK Gas expects the joint project will lead to the transfer of knowledge and technology, which will nurture its PDH operation.
Key practical applications of propylene downstream include.
- PROPANE (PDH)
- NAPHTHA (NCC)
- Polymerization - PP (Polypropylene) - Film, tape, synthetic fiber, pipe, electronic parts, car bumpers, packaging materials, toys, chandlery
- Amm-oxidation - AN (Acrylonitrile) - Synthetic fiber, automobile/electronic parts, acrylamide, ABS resins
- Oxidation/ Oxy chlorination - PO (Propylene Oxide) - Polyurethane foam (automobiles, mattress, construction), solvent, cosmetics, medicines)
- Oxidation - A.A (Acrylic Acid) - PAA (poly-acrylic acid, acrylate, coats, adhesives, paints)
- Hydro-formylation - BUTANOL - Solvent, paint plasticizer, coats
- Cumene Process - PHENOL / ACETON - Materials for engineering plastics (BPA, PC), medicines, detergent
- Self codensation - 2-EH (2-Ethylhexanol) - Plasticizer, gasoline additives