In July, China's Fujian Refining & Petrochemical (FREP) favors liquefied petroleum gas (LPG) than naphtha as the prices were cheaper.
From the start of this month, FREP replaced some naphtha feedstock for its 1 mtpa ethylene cracker with butane. The cracker can run on both naphtha and LPG, with LPG consumption per month totaled 10% of the feedstock requirement at 20,000-25,000 t.
In April to June, the plant's ethylene cracker ran on naphtha when butane and propane values were at a premium to naphtha. However, in June, naphtha prices surged due to the strong ethylene margins and tight supplies.
According to the oil analytic company Vortexa, Quanzhou terminal, which supplied FREP’s ethylene cracker, imported LPG by 74,000 t, down by 27% on the year.
Other Chinese ethylene crackers with feedstock flexibility are also targeting LPG at the moment.
China National Offshore Oil Corporation (CNOOC)-Shell JV’s 1 mtpa ethylene cracker in Guangdong is also assessing the use of LPG from CNOOC's 440,000 bpd Huizhou refinery and could consume some 20,000 t/month of LPG.
