Propylene: Feedstocks
Why propane, not naphtha, now sets the cost
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Propylene is made from naphtha and gas oil (crude oil), propane (natural gas liquids) or coal. For co-product routes, cost depends on the main product; for PDH, cost is propane plus about $150-250/t conversion (indicative). Cheap propane from the US and Gulf, and cheap coal in inner China, set who is competitive.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Gas Natural gas | about 1.2 t per t propylene via PDH (indicative) | PDH feed; also cracker feed | about 70-80% of PDH cash cost (indicative) | indicative; S&P Global Dec 2025 for volumes |
| Oil Crude oil | co-product allocation (indicative) | steam cracking and FCC | about 70-80% of cracker cash cost before credits (indicative) | indicative |
| Tc Thermal coal | about 3 t methanol per t light olefins | CTO/MTO in China | not published | indicative |
| Platinum or chromium catalysts | small; Oleflex uses platinum-tin | PDH catalyst | about 1-2% (indicative) | indicative |
Who is low-cost, and why
US and Middle East PDH and refinery FCC propylene are lowest cost. Chinese PDH running on imported propane sits mid-to-high on the curve, especially when the propane price is lifted by shipping or tariffs. European and Japanese naphtha crackers are highest cost.
Raw materials on the commodity table
Oil Crude oilGas Natural gasWhat it is made into
| Product | Note |
|---|---|
| PP Polypropylene | about 71% of propylene |
| PO Propylene oxide | about 8% (indicative) |
| ACN Acrylonitrile | about 6% (indicative) |
| Phe Phenol and acetone | via cumene |
| AAc Acrylic acid | via propylene oxidation |
| IPA Isopropanol | via propylene hydration |