Chinese operator lets contract for PDH units

Kingfa Sci. & Tech. Co. Ltd. subsidiary Ningbo Kingfa Advanced Materials Co. Ltd. has let a contract to Lummus Technology LLC to license technology for two new propane dehydrogenation (PDH) units to be built at its complex in the Qingzhi Industrial Park of Ningbo Economic and Technological Development Zone, Ningbo City, Zhejiang Province, adjacent to China’s second largest port of Beilun.

As part of the contract, Lummus—alongside catalyst partner Clariant International Ltd.—will license its proprietary CATOFIN PDH technology process as well as provide the basic engineering package, technical services, and catalyst supply for the two PDH units, each of which will have a production capacity of 600,000 tonnes/year to boost the site’s propylene production capacity by 1.2 million tpy, the service provider said.

While it disclosed neither a value nor timeframe for its work under the agreement, the service provider confirmed this latest contract follows Ningbo Kingfa’s previous award to Lummus for licensing of CATOFIN PDH technology for the Ningbo plant’s first PDH unit.

The new PDH units come as part of the operator’s Phase 2 and Phase 3 expansion projects at the complex, according to Mark Yang, Ningbo Kingfa’s general manager.

Established in 2011, Ningbo Kingfa’s 16-billion yuan complex, in addition to propylene, produces isooctane, methyl ethyl ketone, 2-butanone, isooctane, n-butane, sulfuric acid, LPG, hydrogen, and mixed pentanes, according to the company’s website.

Last year, Ningbo Kingfa and Zhejiang Energy Group Co. Ltd. signed a cooperative framework agreement under which Ningbo Kingfa would provide hydrogen from its Ningbo complex to a proposed station to be built by Zhejiang Energy, according to an Aug. 21, 2019, release from Ningbo Kingfa. Further details regarding the proposed strategic partnership have yet to be revealed.