SK gas decided to enter the PDH business after comprehensively reviewing the changes in the industrial environment with the rapid increase in North America's shale gas production, SK gas storage facilities, and LPG sourcing capabilities. SK gas has been operating Korea's largest PDH plant in Ulsan since 2016.
What is PDH?
What is PDH?
Propane Dehydrogenation (PDH) is a process in which propylene is produced by removing hydrogen from propane. Propylene is used as a base oil for plastics, synthetic fibers, automotive interior materials, etc. Propylene, along with ethylene, is used as a basic raw material for many petrochemical products, and has become the foundation of the petrochemical industry. Recently, there is a continuous increase in demand for propylene due to the growth of related industries.
SK gas has the world's largest rock tunnel-type LPG storage facility in Ulsan, with a capacity of 270,000-tons. In addition, main infrastructures such as docks can be shared by the group's affiliates, providing an optimal business environment for the PDH business.
The PDH business is operated in the form of a joint venture (JV) with an APC (Advanced Petrochemical Company) from Saudi Arabia and a PIC (Petrochemical Industries Company) from Kuwait. The rich experience and knowledge obtained from APC's further increased the stability of the plant's operations in the early stages of operation of the PDH plant. We can expect synergy in the PDH business through cooperation with oil-producing countries by securing an advantage in the supply of raw materials, and also by maintaining a stable supply of raw materials and developing a driving force to enter the downstream business.
By leveraging the synergy between the PDH business and the existing LPG business, SK gas has successfully transformed into an energy & gas chemical company.