South Korean Hyundai Oilbank's new 52,000 b/d residue fluid catalytic cracker at its Daesan refinery is gradually switching to propylene production from gasoline production from this month, a company source said Wednesday.
It is unclear how long the RFCC will operate in the propylene production mode.
The switch in production is likely due to the strength of the propylene market in Asia, industry sources said. The FOB South Korea propylene price has averaged 7.4% higher month on month so far in August, at $1,539.18/mt. Tight supplies from Taiwan amid multiple propylene plant shutdowns have boosted the price, sources added.
Hyundai Oilbank in early May started up the RFCC, which is located at its 395,000 b/d refinery in Daesan. Since then, the company has been operating the RFCC in "gasoline mode" -- maximizing gasoline production from the unit while reducing propylene output.
Producers typically switch back and forth between "gasoline mode" and "propylene mode," depending on demand for the products.
Hyundai's RFCC is able to produce 300,000 mt/year of propylene when in "propylene mode." The source said propylene production typically goes down around 10% in "gasoline mode" operations.
