Propane Dehydrogenation Plants' Margins in the US Have Been Increasing in the Last 5 Years

Due to higher PG propylene prices and lower propane prices, PDH process plants margins in the US are boosted, says the third part of Intratec’s Propane Dehydrogenation Process publication.

Houston, TX, July 21, 2013 --( In the most recent report, Intratec Solutions LLC ( brings 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. The publication “Propylene via Propane Dehydrogenation, Part 3” reports that 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.

The assessment estimates the capital costs required to construct a propane dehydrogenation unit as well as the operational costs. In addition, 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.

The study also indicates that although propane availability in China is not as large as in the US, the Asian country is a suitable location for PDH plants, as 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

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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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