ZPC Picks Lummus for World’s Largest 1.2 MTPA PDH Unit

Zhejiang Petroleum & Chemical Co., Ltd. (ZPC) has selected Lummus Technology to license its CATOFIN™ propane dehydrogenation (PDH) technology for a new production unit in Zhejiang Province, China. With a planned capacity of 1.2 million metric tons per annum, the facility will become the world’s largest licensed PDH unit, marking a significant development in the global propylene market.

The project highlights the growing importance of large-scale PDH facilities as petrochemical producers seek to secure reliable propylene supplies for downstream applications. Propane dehydrogenation converts propane into propylene, a key petrochemical building block used to manufacture polypropylene, acrylonitrile, propylene oxide, cumene and numerous other chemical derivatives.

Lummus Technology said ZPC’s decision reflects confidence in the performance and reliability of its CATOFIN technology. According to the company, CATOFIN has demonstrated its ability to achieve or exceed design capacities while maintaining operational reliability and cost efficiency. The selection also strengthens the long-standing relationship between ZPC and Lummus.

ZPC and its affiliated companies have previously licensed several Lummus technologies, including CDAlky®, ISOCRACKING, DPC and butadiene extraction technologies. However, the new project represents the first time ZPC has selected Lummus’ PDH technology. ZPC had previously employed another PDH process, making the latest decision particularly significant for Lummus in expanding its presence within one of the world’s largest petrochemical markets.

The propylene generated by the new facility will be directed toward the production of higher-value petrochemical derivatives. ZPC is expected to benefit from additional propane availability resulting from ongoing expansions of its upstream refinery operations. This integration of refinery feedstock with downstream petrochemical production could improve feedstock security and support more efficient plant operations.

The project also demonstrates the increasing momentum behind CATOFIN technology in the global PDH sector. Developed by Lummus in collaboration with catalyst producer Clariant, CATOFIN combines proprietary process technology with advanced catalyst systems. The integrated approach is designed to deliver high propylene yields, reliable operations and competitive production economics.

Lummus stated that CATOFIN has recently been selected for a majority of PDH project awards, with several large-scale facilities already commissioned and achieving their targeted performance levels. ZPC’s 1.2 million-tonne-per-year project further reinforces the trend toward increasingly large PDH plants designed to meet rising global propylene demand.

Chemical Commodity Price Impact

The project will significantly expand ZPC’s propylene production capacity and strengthen its ability to supply downstream polypropylene and other propylene derivatives. Once operational, the unit could improve regional propylene availability and reduce dependence on external supplies, potentially creating downward pressure on propylene prices in China if production grows faster than demand. Higher propylene availability may also moderate feedstock costs for polypropylene and other derivatives. However, the effect is unlikely to be immediate because the facility will take time to construct and commission. In the near term, increased project activity could support demand for propane, catalysts and petrochemical equipment, while longer-term propylene oversupply could pressure prices.