Pakistan's Engro plans PDH plant to produce PP

: LPG, Petrochemicals
21/04/09

Pakistani conglomerate Engro will spend $31.4mn to examine the potential of constructing a propane dehydrogenation (PDH) plant in the country to produce polypropylene.

A final investment decision on the project will be based on the results of the study, as well as Pakistan's policy and financing environment, Engro said in a statement to the Pakistan stock exchange.

The planned plant will be the first of its kind in Pakistan. The statement did not mention any capacity, but previous plans envisaged building a 500,000 t/yr plant in a coastal area around 2024-2025.

There are no PDH plants in south Asia that produce PP. India is the only country in the region that produces PP at its crackers and refineries.

Pakistan imported 503,572t of PP in 2020, of which 48pc was from Saudi Arabia, 19pc from the UAE and 15pc from Kuwait. This was up by 22pc from its 2019 imports of 412,429t, of which 50pc came from Saudi Arabia, 18pc from the UAE and 9pc from India.

Pakistan is a net importer of LPG, and propane feedstock for the planned plant will boost the country's imports. It is expected to produce 743,000t and import 330,000t of LPG this year. This compares with its 731,000t of production and 331,000t of imports in 2020.

By Reza Amanat and Toong Shien Lee

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