First in China! CNPC achieves breakthrough in polyolefin elastomer technology!

From April 30 to May 9, Dushanzi Petrochemical Company successfully developed six new ultra-low-density and extremely low-density polyethylene (ULDPE/ELDPE) product grades. This marks the first time in China that a gas-phase process has been used to produce polyolefin elastomers (POE), representing a major technological breakthrough. On July 30, Dushanzi Petrochemical’s Polyolefins II Division achieved another milestone by successfully switching production to a new POE grade—UL0588. Compared with the previous trial run, this transition took nearly half the time, and post-transition operating conditions were significantly more stable, with improved online product quality. POE is a random copolymer of ethylene and α-olefins, featuring high comonomer content. Owing to its low density, uniform branch distribution, and narrow molecular weight distribution, POE exhibits rubber-like high elasticity while remaining processable via thermoplastic techniques—unlike conventional rubbers. It has thus emerged as a key next-generation material replacing traditional rubbers and certain plastics, finding broad applications in photovoltaics, automotive components, wire & cable, footwear, and other fields. Gas-phase POE production is characterized by long cycle times, stringent polymerization conditions, and challenges in maintaining process stability. During the preparatory phase for POE production, Polyolefins II Division refined its technical production scheme based on structural performance data and market application feedback from the initial trial batch. To overcome bottlenecks in polymerization technology, the team boldly innovated, rigorously validated options, repeatedly assessed solution feasibility, and modeled optimization effects—ensuring stable plant operation while fully unlocking the facility’s technical potential. During the production transition, staff from Polyolefins II Division closely monitored field operations, promptly resolved practical issues, adjusted and optimized procedural steps, and overcame multiple adverse factors—including aging equipment, high temperatures, and round-the-clock shifts—to successfully switch production to the new POE grade UL0588. At CNPC’s 2024 Mid-Year Work Conference, Chairman Dai Houliang emphasized: “Shifting from factor-driven to innovation-driven development, and intensifying efforts toward transformation, upgrading, and structural adjustment.”

Chemical olefin industry report: Under the trend of diversified feedstocks, low-carbon new materials represent the long-term development direction.

Currently, the largest-scale ethylene production capacity stands at 1.6 million tons per year, with individual cracking furnaces typically rated at ~200,000 tons/year. Multiple furnaces are usually deployed, feeding light and heavy fractions separately. Light feedstocks yield higher ethylene, but propane cracking generates relatively large amounts of byproduct methane. For petroleum-based ethylene production (e.g., naphtha + LPG), downstream value-added products—including C4/C5 streams and aromatics—must also be considered; such integrated complexes serve as versatile platforms enabling broader applications in fine chemicals and new materials once product portfolios diversify. Given differing feedstock and downstream configurations, a rational ethylene cost assessment should be conducted holistically across integrated petrochemical facilities. With the expansion of U.S. shale development, U.S. ethane output has risen substantially. Ethane is used almost exclusively for ethylene cracking, conferring clear price advantages. However, logistics constraints limit ethane imports into China—currently, only Satellite Chemical has successfully integrated the entire value chain domestically. Since 2021, energy-related price hikes have affected coal and LPG; currently, naphtha-based ethylene production holds a cost advantage over LPG-based routes. Compared with conventional naphtha-based ethylene, ethane cracking offers lower energy consumption and co-produces hydrogen. In October 2021, the State Council issued the ‘Action Plan for Carbon Peak Before 2030’, calling for lighter feedstocks in petrochemical production. External ethane supply remains constrained mainly by logistics and sourcing—but U.S. ethane supply is expected to remain ample. According to the U.S. Energy Information Administration (EIA) November report: U.S. ethane production averaged 2.11 million barrels per day (bpd) in 2020, versus domestic demand of 1.73 million bpd; in 2022, production rose to 2.45 million bpd, with domestic demand at 2.02 million bpd. Assuming 1 million tons/year of ethylene requires ~60,000 bpd of ethane, the U.S. surplus available for export in 2022 was ~430,000 bpd—sufficient to support ~7.1 million tons/year of ethylene cracking feedstock. 2. Propylene Industry Chain Overview By 2020, global propylene capacity reached ~141 million tons/year, with demand at ~111 million tons/year. China’s capacity stood at 46 million tons/year—accounting for ~32% of global capacity. Traditional propylene production routes include steam cracking, refinery fluid catalytic cracking (FCC) separation, and deep catalytic cracking (DCC); purpose-built (on-purpose) technologies include propane dehydrogenation (PDH), olefin metathesis, and methanol-to-propylene (MTP). Like ethylene, propylene’s largest downstream use is polyolefins (polypropylene), yet its broader range of derivatives makes it especially suitable for fine chemical applications. China’s propylene demand has consistently grown rapidly. As domestic capacity expands, import dependency has declined. Domestic downstream sectors—including butanol/octanol and acrylic acid—have also scaled up, with some products now exported. In 2020, China’s propylene capacity was 45.18 million tons, output 37.04 million tons, and apparent demand 39.54 million tons. Net imports—converted to propylene-equivalent terms—across key derivatives (e.g., acrylonitrile, propylene oxide, acrylic acid, n-butanol, isooctanol, phenol, acetone) totaled 4.04 million tons. Polypropylene (PP) is a non-toxic, odorless, highly crystalline polymer with a density of 0.90 g/cm³—among the lightest plastics available. PP exhibits excellent mechanical properties, good heat resistance, and strong chemical stability, making it widely applicable in packaging, home appliances, automotive parts, textiles, and construction piping.

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Podcast: Asia Olefins, Styrenics Conversations Kick Off at China Summit

Podcast: Asia Olefins, Styrenics Conversations Kick Off at China Summit

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