Lyondell Propylene Oxide/Styrene Monomer (POSM) Plant Ningbo, China

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Key Data

Order year

2006

Construction started

2007

Project type

PO/SM plant

Location

Ningbo province, China

Estimated investment

n/a

Completion

2009

Sponsors

Lyondell Chemical Technology Limited, Lyondell Chemical Company, Sinopec Zhenhai Refining & Chemical Co., Ltd (ZRCC)

Full specifications

In February 2007 Lyondell Chemical Technology Limited (a subsidiary of Lyondell Chemical Company) announced it had received the final approval of the Chinese government for the construction of a new propylene oxide/styrene monomer (POSM) manufacturing facility. The facility will be built in Ningbo, Zhejiang province, eastern China, situated across the Hangzhou Bay from Shanghai. "The plant will be constructed using Lyondell's proprietary POSM technology." The project is being undertaken as a partnership between Lyondell and its Chinese partner Sinopec Zhenhai Refining & Chemical Co., Ltd (ZRCC). The plant will be constructed using Lyondell's proprietary POSM technology, which has been successfully installed at a number of other plants around the world and is widely known as a process that is inexpensive to run due to its low operating costs. POSM technology is used for about one third of the world's production of propylene oxide and involves the reaction of propylene and ethylbenzene to produce propylene oxide + styrene. The majority (60 and 70%) of propylene oxide is used in the manufacture of polyether polyols for use in making polyurethane plastics. Propylene oxide is also used in the production of propylene glycol, polypropylene glycol, propylene glycols ethers and propylene carbonate. Lyondell already has two other POSM plants near Houston, Texas, US and Rotterdam in the Netherlands. OPERATING The raw material feedstock for the plant will be provided by a new 1 million tonne per year olefins plant which is currently being constructed by ZRCC in Ningbo. The technical expertise, operating experience and POSM technology will come from Lyondell. "The production capacity for the new plant will be 274,000t of propylene oxide and 620,000t of styrene monomer per year." The propylene oxide will be jointly marketed by the two companies and the profits shared equally. Lyondell has predicted that the world demand for propylene oxide is increasing, estimated at 6.5 million tonnes in 2006 and still growing. CONTRACTORS In June 2007 Jacobs Engineering Group Inc. announced that it had received a contract award from Lyondell to provide engineering design services to prepare the technical details of the licensor's project design package, for one of the world's largest POSM facilities. The production capacity for the new plant will be 274,000t of propylene oxide and 620,000t of styrene monomer per year.	Expand Image Lyondell has some of the most efficient POSM plants in the world; its new Ningbo plant will add to its expertise.
	Expand Image Styrene is an important chemical in the manufacture of polymers.
	Expand Image The plant will have a nearby source of raw materials from the new 1 million tonne per year olefins plant being constructed by ZRCC in Ningbo.
	Expand Image The new Lyondell plant is being constructed in Ningbo across the Hangzhou Bay from Shanghai.

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