Due to the huge consumption demand in China, there has been a large shortage of propylene in Asia in recent years. The rapid increase in demand in Asia and the rise in propylene prices have attracted large amounts of money to invest in this area. According to CMAI analysis, in the next five years, Asia will be the world's newest addition to propylene, and about 41% will use alternative technologies. This will increase the supply of propylene from alternative technologies in the region from less than 7% of the world's total in 2005 to 12% in 2010.

The CMAI analysis believes that the increase in propylene demand continues to exceed that of ethylene, while the increase in steam cracking equipment still fails to meet the increase in propylene demand. Most of the newly added steam crackers are also based on ethane as raw materials, with almost no propylene coupling products. In recent years, the supply of propylene has been further tightened and prices are rising. For this reason, there is a need to invest heavily in alternative technologies to meet the future demand for propylene.

The industry generally believes that specialized production of propylene is a more costly alternative to steam cracking and refinery sources. However, the continued increase in the price of propylene and the improvement in the production efficiency of propylene have promoted investment in alternative technologies, including propane dehydrogenation, metathesis conversion, propylene cracking of high-carbon olefins, deep catalytic cracking (FCC) and methanol to olefins. Become a choice for people. These new technologies for the production of propylene are actively being developed.

In Asia, there are currently four transposition conversion units with a total propylene production capacity of 580,000 tons/year. The four units have been put into production this year, including South Korea's LG Chemical Co. and South Korea's petrochemical industry company's installations in Lishui and Wenshan, the Japanese petrochemical company's installation in Kawasaki, and Singapore Petrochemical Corp. (Japan's consortium led by Sumitomo Chemical and Shell Dongfang Petroleum. The company's joint venture) 200,000 tons/year installation at Jurong Island. As the Middle East/Africa will invest heavily in flexible raw material steam crackers, refineries, and alternative propylene technologies in the next five years, by 2010 Middle East/Africa will shift from a net importer of propylene to a net exporter. Israel Carmel Olefin Co., Ltd. increased its production of 210,000 tons of propylene per year through the expansion of steam cracker and translocation conversion devices. Sasol also plans to increase production of 340,000 tons/year of propylene through the high-carbon olefin cracking route in Sekouda, South Africa, in 2006.

Because of the availability of cheap ethane, most of the investments in the Middle East petrochemical project focused on cracking units using ethane as raw material. However, several sets of propylene derivative devices are also planned and constructed in the area. The first round of propylene investment in the Middle East will increase the share of propylene in the region from less than 5% to 10% in 2010. The newly added propylene capacity is mostly based on steam crackers, but it also includes propane dehydrogenation, metathesis conversion, methanol to olefins, high-carbon olefin cracking, and FCC.

Demand for propylene in the United States and Europe has grown relatively slowly, and there has been little new investment in the ability to expand propylene. According to CMAI statistics, more than half of the 20 million tons/year propylene supply in North America and South America comes from refineries, 45% from steam cracking, and only 2% from alternative technologies. U.S. propylene supply sources are expected to be similar in 2010. The United States is the world’s largest exporter of propylene and propylene derivatives. Although its share in the world market will decline, it will still be a competitive net exporter in the next few years.

The production of propylene by steam cracking plants in Europe is currently 16.6 million tons/year, accounting for about 72% of the total in Europe; production capacity from refineries is 25%; and the share from alternative production is only 3%. Europe is not investing in new steam crackers because of weak demand forecast. At the same time, the Middle East is investing heavily in crackers, and the Middle East will export more ethylene and derivatives to Europe. It is expected that the demand for propylene in Europe will decline in the next few years and the supply of new propylene from refineries and alternative technologies will be restricted.

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