Propane Dehydrogenation Margins Boosted by Low-Cost Propane and Increase in Propylene Prices

The economics of propane dehydrogenation process in the US and China is the subject of the latest publication released by Intratec.

Online PR News – 10-July-2013 – Houston, TX – Intratec Solutions LLC ( continues the study on the economics of propane dehydrogenation (PDH) processes and publishes “Propylene via Propane Dehydrogenation, Part 3”, bringing an economic analysis of a PDH plant capable of producing 450 kta of polymer-grade (PG) propylene using a technology similar to the Uhde STAR process.

According to the publication, investments on building PDH plants in the US are encouraged by the growing exploitation of shale gas in the country, which increases propane availability and reduces its cost.

After estimating the capital costs required to construct a propane dehydrogenation unit as well as the operational costs, Intratec performed a historical pricing analysis, which revealed that PDH plants margins in the US have been increasing in the last 5 years due to higher PG propylene prices and lower propane prices. The analysis shows that the current scenario is favorable to new propylene plants relying on PDH process.

PDH plants margins in the US have been increasing in the last 5 years due to higher PG propylene prices and lower propane prices.

The study also indicates that China is a suitable location for PDH plants. Although propane availability in the country is not as large as in the US, Middle East plants may supply the feedstock. It is possible to take advantage of lower construction costs and build propylene plants integrated with polypropylene units. Integrated projects may exhibit higher margins, due to the spread between imported propane and polypropylene prices. Thus, attractive rates of return on investment can be achieved in the country.

“Propylene Production via Propane Dehydrogenation, Part 3” is available at established distribution channels like and HP Magcloud. A preview of the publication can be found at:

This publication complements the two studies previously released by Intratec:

“Propylene Production via Propane Dehydrogenation”, describing a propane dehydrogenation process similar UOP Oleflex – available at

“Propylene Production via Propane Dehydrogenation, Part 2”, depicting propane dehydrogenation plants relying on a process similar to Lummus CATOFIN – available at

About Intratec Solutions

Intratec ( offers online the most affordable and reliable advisory services on mature chemical process technologies, emerging process technologies and chemical process improvements. Intratec also provides techno-economic publications for chemical and allied industries. Intratec's expertise resides at the intersection of technology and strategy - a natural fit for clients looking for thought-provoking technological analysis and visionary strategic thinking. Intratec is the developer of the Knowledge Base, a Free Encyclopedia of Chemical Technology & Economics.

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Contact Information
Thiago Carneiro
Intratec Solutions LLC
5847 San Felipe Street, Suite 1700
Houston TX, 77057


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