South Korea’s SK Advanced, a subsidiary of SK Gas, will embark on the production of propylene at its newly built factory in Korea in a bid to meet the burgeoning demand for propylene in China, as per pulsenews.co.kr. The propane dehydrogenation (PDH) facility has been inaugurated at the southern port city of Ulsan on Sunday. SK Advanced is a joint venture between SK Gas Ltd. (45%), Saudi Arabia’s Advanced Petrochemical Co. (APC-30%) and Kuwait’s Petrochemical Industries Co. (PIC-25%).
The Ulsan facility is projected to produce 600,000 tpa of propylene. The recent rebound in propylene prices is also expected to bode well for the company. The protracted fall in oil prices once sent the propylene price plunge from the peak of US$1400/ton in 2014 to US$500 last year. However, the price rebounded this month to US$749 amid a pickup in the oil prices.