What domestic and foreign equipment and processes were selected for the Zhejiang Petrochemical project? Attached is a summary of information on the 40 million tons/year integrated refining and chemical project!

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Zhejiang Petrochemical Co., Ltd.’s 40 million tons per year integrated refining and chemical processing project is located at the Zhoushan Green Petrochemical Base on Yushan Island, Daishan County, Zhoushan City. The first phase of this integrated project involves refining capacity of 20 million tons per year, PX production capacity of 4 million tons per year, as well as ethylene production capacity of 1 million tons per year； Phase II includes 20 million tons per year of oil refining, 4.8 million tons per year of PX, and 1.2 million tons per year of ethylene. The total investment for the project is 1,730,848.5 million yuan, of which 30% comes from the company’s own funds, while the remainder is financed through bank loans. The shareholding structure and contribution ratios of the project are as follows: Zhejiang Rongsheng Holding Group Co., Ltd. contributes 51%, Juhua Group Company contributes 20%, Zhejiang Tongkun Holding Group Co., Ltd. contributes 20%, and Zhoushan Marine Comprehensive Development Investment Co., Ltd. contributes 9%. Currently, the Ministry of Environmental Protection has officially approved the project’s environmental impact assessment report, and the Zhejiang Provincial Development and Reform Commission has also given formal approval to the project. On March 28, 2016, Zhejiang Petrochemical signed design contracts for the main units of its 40 million tons per year integrated refining and chemical processing project with Global Company, Luoyang Institute, and Zhenhai Institute. The project was officially launched in February 2016 and came online by the end of 2018; Huanqiu Company was responsible for the engineering design of 18 main units and 21 utility units for this project. On July 13, 2016, Huanyu Company signed an engineering contract with Zhejiang Rongsheng Holding Group for the design of the plant’s main pipelines, flares, and other plant-wide facilities for the 40 million tons per year petrochemical integration project at Zhejiang Petrochemical. On April 12, 2017, the East China Branch of China State Construction Third Engineering Bureau Company No. 2 won the bids for Contracts 7 and 8 for chemical processing, as well as Contract 4-4 for storage and transportation, in the first phase of Zhejiang Petrochemical’s 40 million tons per year integrated refining and chemical processing project. The project includes Contract 7 for chemicals (a 450,000-ton/year full-density polyethylene plant, a 300,000-ton/year high-density polyethylene plant, and Plant 2 for chemical process circulating water), Contract 8 for chemicals (a 900,000-ton/year polypropylene plant), and Project 4-4 for storage and transportation (PX tank farms, chemical product tank farms, Plant 5 for accident containment and rainwater monitoring tanks, liquid loading facilities, road loading/unloading stations, and tank cleaning stations). On April 7, 2017, the East China Branch of China National Chemical Engineering Corporation Fourth Construction Co., Ltd. won the bid for Section 6 of the installation work for Zhejiang Petrochemical Co., Ltd.’s 40 million tons per year integrated oil refining and chemical processing project (Phase I) – this includes facilities for producing 1.93 million tons of ethylbenzene and 1.2 million tons of styrene, as well as a 800,000 tons per year ethylene glycol production facility, along with the fourth chemical process circulating water system and various pipelines and ductwork within the site. The project is priced based on unit rates, without including the cost of primary materials; the estimated construction cost is 400 million yuan, with a contract duration of 15 months. On May 22, 2017, in the bidding competition for Zhejiang Petrochemical Co., Ltd.’s 40 million tons per year integrated refining and chemical processing project, China National Chemical Engineering Corporation’s Third Company, thanks to its strong brand reputation and comprehensive construction capabilities, won the contract for Section 7, the largest section of this project (Phase I), with a contract value of over 600 million yuan. The project scope includes facilities for 400,000 tons per year of phenol, 250,000 tons per year of propylene, 250,000 tons per year of bisphenol A, 260,000 tons per year of polycarbonate, DMC, and PC; as well as the construction of a No. 5 chemical circulating water plant and the installation of pipelines and pipe racks within the designated area. On May 24, 2017, Sinochem Second Construction Group Co., Ltd. and Zhejiang Petrochemical Co., Ltd. officially signed a construction contract in Hangzhou with Rongsheng Holding Group for the installation work of Phase I, Section 4 of the 40 million tons per year integrated refining and chemical processing project (including a 550,000 tons per year sulfur recovery unit, a 1.4 million tons per year aviation fuel hydrogenation unit, a 2 million tons per year catalytic gasoline hydrogenation unit, a 700,000 tons per year catalytic light gasoline etherification unit, as well as utility facilities such as a waste heat recovery station and a circulating water system). On December 19, 2016, the kick-off meeting for the Mamu Oil Depot to Yushan oil pipeline project, part of CNPC’s Pipeline Bureau, was held at the Pipeline Design Institute. This project is a supporting facility for the first phase of Zhejiang Petrochemical’s 40 million tons per year integrated refining and chemical processing project. It is located west of Dingxia Line in Cengang Town, Dinghai District, Zhoushan City, Zhejiang Province. The main structures consist of crude oil storage tanks – a total of 40 tanks in 8 tank groups, all of which are large-scale tanks with a capacity of 100,000 cubic meters each. The geotechnical investigation level for this site is Class A, with 887 exploration boreholes conducted. The Mamu Oil Depot to Yushan oil pipeline project was funded and constructed by Zhejiang Petrochemical Co., Ltd. The project includes the Mamu terminal station and the Yushan terminal station, land-based pipelines, submarine pipelines, valve rooms, and communication optical cables. The designed annual transport capacity is 40 million tons, with a design pressure of 4.0 MPa. Both land-based and undersea pipelines are laid as twin pipelines; the single pipe for the Mamu land pipeline is 7 kilometers long, the single pipe for the undersea pipeline is 16 kilometers long, and the single pipe for the Yushan land pipeline is 5.5 kilometers long. In this project, the Pipeline Bureau is responsible for the construction of the land-based pipelines and submarine pipelines in Mamu. The Pipeline Design Institute and Tianjin Design Institute are respectively responsible for the preliminary design and construction drawings of the starting and ending stations of the land-based pipelines in Mamu, Valve Room No. 1, Valve Room No. 2, as well as the submarine pipelines. On February 7, 2017, China Energy Engineering Group Zhejiang Thermal Power received the award notice for the installation work of Bid 4 for the utility systems of the 40 million tons per year integrated refining and chemical processing project (Phase I) from Zhejiang Petrochemical Co., Ltd. The win of this project marked a significant breakthrough for Zhejiang Thermal Power in its development beyond the power sector. On March 28, 2017, the construction of the main unit for Phase 1 of the Power Center project at the Zhoushan Green Petrochemical Base – China’s first oil refining project controlled by private capital and built by China Energy Engineering Group Zhejiang Thermal Power – officially commenced. It is reported that Zhejiang Thermal Power has won the bid to undertake the utility work for the first phase of Zhejiang Petrochemical Co., Ltd.’s integrated oil refining and chemical processing project, which involves a capacity of 40 million tons per year. This includes the installation work for Section 4 (the cogeneration project that provides supporting services); 7 new generator sets will be installed, along with desulfurization and denitrification facilities as well as auxiliary facilities for the coal storage area. The aim is to ensure a reliable supply of steam, electricity, and demineralized water for this integrated project. In early June 2017, Daqing Oilfield Engineering Construction Company successfully won the bid for the project related to the plant-wide water supply and drainage systems, groundwater monitoring facilities, and seawater intake pump stations for the first phase of Zhejiang Petrochemical Co., Ltd.’s 40-million-ton-per-year integrated refining and petrochemical complex. This project is a landmark initiative for the company to systematically advance market development in the large private enterprise sector. On May 26, 2017, Hailong Pipeline Engineering Technology Services Co., Ltd. secured an anti-corrosion contract for submarine crude oil pipelines from Zhejiang Petrochemical Co., Ltd., worth no less than RMB 58 million. Under this contract, Hailong Pipeline Engineering will provide 3PE anti-corrosion coating, concrete weight coating, and sacrificial anode protection installation. The planned completion date for this contract is from July to November 2017. On June 12, 2017, the Hangzhou Water Treatment Technology Research and Development Center won the bid for Zhejiang Petrochemical’s 40-million-ton integrated oil refining and chemical production seawater desalination project. This project will become the largest seawater desalination project in China’s petrochemical industry, with a daily desalination capacity of over 100,000 tons. As one of the key supporting projects for this initiative, the seawater desalination plant ensures a supply of water for it. As the general contractor for its desalination project, Hangzhou Water Treatment Center provides comprehensive desalination solutions that cover design, equipment procurement, supply, and installation work. With a capacity of nearly 20,000 tons per day per unit, it ensures an adequate supply of water for the project; meanwhile, the use of a horizontal filter plus reverse osmosis technology helps to maximize efficiency. On May 8, 2017, the South China Branch of SHENGU Group’s Marketing Center signed a contract for the first phase of a 40 million tons per year integrated refining and chemical processing project with Zhejiang Petrochemical Co., Ltd. The contract covered 18 centrifugal compressor units, 15 reciprocating compressor units, 12 main fans for sulfur recovery, and 14 fans for incinerators – a total of 45 units – with a total contract value of nearly 970 million yuan. On December 23, 2016, Sinopec Heavy Industries Corporation and Zhejiang Petrochemical Co., Ltd. successfully signed a contract for the manufacture of 10 residue hydrogenation reactors for the first and second phases of a 5 million tons per year residue hydrogenation plant; the total value of the contract was over 700 million yuan. On January 7, 2017, SINOPEC Heavy Industries signed a manufacturing contract with Zhejiang Petrochemical Co., Ltd. for the forging, welding, and hydrogenation reactors as well as the ethylene oxide reactors required for phases one and two of Zhejiang Petrochemical’s 40 million tons per year integrated refining and chemical processing project; the total value of the contract exceeded 1.5 billion yuan. On February 16, 2017, Hangyang Co., Ltd. and Zhejiang Petrochemical Co., Ltd. held a signing ceremony for the contract regarding four air separation units with a capacity of 83,000 m³/h each, which are intended for the first phase of the 40-million-ton/year integrated oil refining and petrochemical project. The value of this order contract is nearly 900 million yuan, making it the largest contract signed by Hangyang since the deal for six sets of 100,000 m3/h air separation units for Shenhua Ningmei. Since the beginning of 2016, this project has attracted the attention of major manufacturers from home and abroad; well-known global companies in the field of air separation equipment from Germany, France, the United States, and other countries have sent their best teams to compete for it. Relying on its advanced technical capabilities and high-quality services, Hangyang was able to compete with international air separation giants. After several rounds of competition, it ultimately secured the contracts for design, supply, and service related to this project, thereby breaking the monopoly held by foreign companies in the field of ultra-large-scale air separation equipment for integrated refining projects. On February 28, 2017, Hangzhou Linda Chemical Technology Engineering Co., Ltd. signed a contract with Zhejiang Petrochemical Co., Ltd. for the methanol synthesis reactor. To supply hydrogen and fuel gas to the refining and chemical plants, the project includes a coal and coke gas production facility capable of producing 200,000 Nm3/h of hydrogen and 480,000 Nm3/h of fuel gas. In addition, there is a methanol synthesis plant with an annual capacity of 400,000 tons, which is used to adjust the supply of hydrogen and fuel gas as needed. On June 2, 2017, Huisheng Engineering announced that its non-wholly-owned subsidiary, Huisheng Engineering (China) Co., Ltd., had recently secured a contract to supply cracking furnaces for the ethylene unit of Zhejiang Petrochemical Co., Ltd.’s 40 million tons per year integrated oil refining and chemical processing project (Phase I). The delivery of all 9 cracking furnaces for this ethylene unit is scheduled to be completed by early 2018. It is understood that the first phase of Zhejiang Petrochemical’s project involves an ethylene production capacity of 1.4 million tons per year; each cracking furnace has a capacity of 200,000 tons per year, making them the largest cracking furnaces of their kind in China to date. Meanwhile, Huisheng Engineering already possesses more than 170 such ethylene cracking furnaces. On March 31, 2017, the Steel Structure Division of Zhejiang Second Construction Group won the bid for Zhejiang Petrochemical’s 40 million tons per year integrated refining and chemical processing project. The total contract value was 345 million yuan, with the total weight of the steel structures exceeding 60,000 tons – setting new records for both the total contract value and the weight of steel structures in a single project. On April 29, 2017, Hangxiao Steel Structure Co., Ltd. signed a contract with Zhejiang Petrochemical Co., Ltd. for the Zhoushan refining and chemical integration project, which requires more than 60,000 tons of steel in total. The project is located on Yushan Island in Zhoushan City, Zhejiang Province. It involves tasks such as steel procurement, fabrication, processing, anti-corrosion treatment, and ship transportation; it features a tight schedule, a large scale, and high requirements for comprehensive coordination. On April 10, 2017, Ningbo Dongfang Cable Co., Ltd. received a notice of award from Zhejiang Petrochemical Co., Ltd. The company won the bid for the procurement of 35/10/1KV cables for the entire plant in the first phase of Zhejiang Petrochemical Co., Ltd.’s 40 million tons per year integrated refining and chemical processing project. The total value of the contract was approximately 190 million yuan, and the goods involved were mainly 35/10/1KV cables. Process technology: On February 15, 2017, Honeywell Zhejiang Petrochemical Company announced that it had awarded the contract to two divisions of Honeywell International: Honeywell UOP and Honeywell Process Solutions (HPS). These companies will provide a range of process technologies, engineering designs, equipment, and advanced automation controls for the new 40 million tons per year integrated oil refining and petrochemical complex being built in Zhoushan, Zhejiang Province, China. UOP and HPS will provide sets of refining and petrochemical process technologies as well as automation control systems for the first development phase of this project, which will be capable of processing 20 million tons per year of crude oil and producing 5 million tons per year of aromatics. UOP’s scope of delivery for the project includes technical licensing, design, key equipment, as well as all relevant catalysts and adsorbents. The project involves two series of aromatic compounds production facilities that utilize UOP’s LD Parex process, including its Sulfolane, Isomar, and Tatora process technologies, to produce 4 million tons per year of p-xylene. The residue catalytic cracking (RFCC) complex, based on UOP’s RCD Unionfining and RFCC processes, is used to convert 5 million tons per year of residue into fuel. The propane dehydrogenation unit, based on the UOP Oleflex process, will produce 600,000 tons per year of polymeric-grade propylene. A hydrocracking unit, based on the UOP Unicracking process, is used to convert vacuum gas oil into petrochemical feedstocks. Two sets of continuous catalytic reforming (CCR) units, based on UOP’s CCR platinum reforming process, are used to produce aromatics and blending components for high-octane fuels. The naphtha hydrogenation unit uses the UOP Unionfining process for desulfurization. For the control of all refining and petrochemical processing units at this production facility, HPS will utilize its Experion distributed control system, as well as processes designed and configured for Honeywell UOP, in order to integrate all process control and safety systems along with automation software. On May 10, 2017, Honeywell UOP announced that Zhejiang Petrochemical Company would use its four Polybed pressure swing adsorption (PSA) units to supply high-purity hydrogen to a new integrated oil refining and petrochemical complex in Zhoushan, Zhejiang Province. The consortium will use Honeywell Experion distributed control systems from Honeywell Process Solutions, and the PSA units will be controlled by Honeywell C300 controllers integrated into the Experion system. On April 20, 2017, Sibie and Chevron Roumens Sibie announced that they had received a technical license and an engineering design contract from Zhejiang Petrochemical Company for the construction of a 220,000-ton/year diphenyl carbonate (DPC) plant as part of its refining and petrochemical complex, using Versalis technology. Previously, Zhejiang Petrochemical Company had awarded two contracts to SIBA for providing technical licenses and engineering design for three units in the new consortium. One alkylation unit utilizes SIBA’s proprietary CDAlky advanced sulfuric acid alkylation technology, while the two diesel hydrocracking units are equipped with Isocracking technology, which is owned by CLG, the joint venture between SIBA and Chevron. CLG is a joint venture between Chevron and Xiebei. Zhejiang Petrochemical Company has also recently signed another contract with DuPont Clean Technologies, a subsidiary of DuPont de Nemours & Co, to provide engineering services, technical licenses, and proprietary equipment for the MECS sulfuric acid regeneration (SAR) unit of this integrated complex. Designed to meet the current emission requirements set by China’s Ministry of Environmental Protection for sulfur dioxide, NOx, and sulfuric acid fumes, Zhejiang Petrochemical Company’s new MECS SAR unit will be capable of recycling 858 tons per day of waste sulfuric acid, and producing sulfuric acid at 98.3 wt%, sulfuric acid at 99.2 wt%, and fuming sulfuric acid at 20%. General project information: On October 10, 2016, Zhejiang Petrochemical Co., Ltd. conducted the second public notice regarding the environmental impact assessment for its 40-million-ton/year integrated oil refining and petrochemical project in Zhoushan. The total scale of the project is 40 million tons per year for refining, 10.4 million tons per year for aromatics, and 2.8 million tons per year for ethylene, with supporting facilities including storage and transportation systems, auxiliary systems, environmental protection measures, and off-site projects. The project will be constructed in two phases. The total investment in construction is approximately 160 billion yuan. Project Process Equipment – Serial Number, Equipment Name, Phase I (10,000 tons/year), Phase II (10,000 tons/year)
Refining Area:
1. Vacuum Distillation Unit (I), Vacuum Distillation Unit (II): 1000/350, 1000/600, 1000/400, 1000/400
2. Light Hydrocarbons Recovery Unit: 300, 360
3. Coking Unit: 300, 120 (expansion of Phase I unit)
4. Residue Hydrodesulfurization Unit: 500, 500 (optimized feed blending between Phase I and Phase II raw materials)
5. Wax Oil Hydrocracking Unit: 380 (PSA design capacity for hydrogen recovery: 80,000 Nm3/h); 380 (PSA design capacity for hydrogen recovery: 80,000 Nm3/h)
6. Diesel Hydrocracking Unit (I), Diesel Hydrocracking Unit (II): 400, 400, 400, 400
7. Heavy Oil Catalytic Cracking Unit: 420, 420
8. Catalytic Gasoline Hydrogenation Unit: 200, 200
9. Light Gasoline Etherification Unit: 45, 45
10. Jet Fuel Refining Unit: 150, 150
11. Naphtha Hydrogenation Unit: 320, 320
12. Continuous Reforming Unit (I), Continuous Reforming Unit (II): 400, 400, 400, 400
13. Aromatics Unit (I), Aromatics Unit (II): 260, 260, 260, 260
14. Gas Fractionation Unit: 90, 90
15. C3/C4 Separation Unit: 110, 110
16. MTBE Unit: 18, 18
17. Alkylation Unit: 45, 60
18. C5 Isomerization Separation Unit: 150, 180
19. C1/C2 Separation Unit (0 unsaturated/saturated): 30/60, 20/60
20. Double Desulfurization Combined Unit (dry gas desulfurization/liquefied gas desulfurization and dewaxing): (10+30)/(40+100), (10+20)/(40+100)
21. PSA Units (three sets, located in continuous reforming and wax oil hydrocracking units areas respectively): 8 + 2×140,000 cubic meters/hour; 8 + 2×140,000 cubic meters/hour
22. Coal-to-Gas Unit (including gasification, shift reaction, low-temperature methanol washing, hydrogen production): 800,000 cubic meters/hour; 800,000 cubic meters/hour
23. Sulfur Recovery Unit (including acidic water stripping, amine regeneration, sulfur recovery): 48, 60

Chemical Processing Area:
1. Ethylene Unit: 140, 140
2. Propane Dehydrogenation Unit: 60, 60
3. Hexene-1/5
4. FDPE Unit: 45, 45
5. HDPE Unit: 30/
6. EO/EG Unit: 5/75, 10/65
7. EVA/LDPE/10/30
8. Styrene (including ethylbenzene) Unit: 60 + 60, 60
9. Polypropylene Unit: 45 + 45, 45 + 45
10. Butadiene Extraction Unit: 20, 20
11. MTBE/Butene-1 Unit: 10/5/
12. Crack Gasoline Hydrogenation Unit: 65 + 50 (including benzene extraction unit), 85
13. Phenol Propylene: 4/25
14. Bisphenol A: 23, 23
15. Polycarbonate: 26, 26
16. Acrylonitrile: 26/
17. MMA: 9/

Project Product Plan – Serial Number, Product Name, Phase I (10,000 tons/year), Phase II (10,000 tons/year)
Refining Area:
1. Propylene: 27.65 (sent to chemical processing area), 32.76 (sent to chemical processing area)
2. Propane: 47.93 (sent to chemical processing area), 49.66 (sent to chemical processing area)
3. National VI Gasoline: 378.85, 378.42
4. Jet Fuel: 284.41, 290.46
5. National VI Diesel: 172.81, 155
6. Benzene: 151.91, 129.03
7. p-Xylene: 401.23, 398.77
8. Ethylene Feedstock: 393.26 (sent to chemical processing area), 403.21
9. Sulfur: 38.84, 6.7
Total: 1,898.31, 1,889.03

Chemical Processing Area:
1. Monoethylene Glycol: 73.87, 65
2. Diethylene Glycol: 6.15, 5.39
3. Triethylene Glycol: 0.35, 0.31
4. EO/5
5. LLDPE: 23, 21.2
6. HDPE: 25.8/
7. Homopolymerized Polypropylene: 54, 54
8. Copolymerized Polypropylene: 8.4, 29
9. Anti-polymerized Polypropylene: 27, 27
10. Ethylene Glycol: 6.6, 6.6
11. Polycarbonate: 26, 26
12. Phenol: 20.69
13. Propylene: 13.64
14. MMA: 9
15. Acrylonitrile: 27.04
16. Butene-1: 2.39/
17. Butadiene: 22.34, 23.18
18. Styrene: 120, 60
19. EVA/10
20. LDPE/27.1
21. Hexene-1/5

The refining section of this project adopts a core process flow that includes “vacuum distillation + delayed coking + residue hydrodesulfurization/heavy oil catalytic cracking + wax oil hydrocracking + diesel hydrocracking + continuous reforming/aromatics combined units”. All ethylene feedstock comes from refining units, with a focus on developing the downstream industrial chains for ethylene and propylene. The supporting storage and transportation facilities mainly include oil refining tank farms (139 in Phase I and 132 in Phase II), liquid chemical product tank farms (86 in Phase I and 58 in Phase II), as well as packaging and storage and transportation facilities for solid raw materials and products. The auxiliary facilities mainly include the circulating water plants (7 in Phase I and 6 in Phase II), the water supply system, the pretreatment and drainage systems for wastewater treatment, the air separation unit, the air compressor station, the flare system, and the central laboratory. Environmental protection projects mainly include oil and gas recovery facilities in tank areas, process waste gas treatment facilities, treatment facilities for spent caustic solution from ethylene production, solid waste incineration facilities, hazardous waste temporary storage areas, and accident ponds. Off-site works mainly include off-site roads, power supply lines, water supply pipelines, and sewage discharge pipelines. The main products of this project include National VI gasoline, aviation fuel, National VI diesel, benzene, p-xylene, sulfur, ethylene glycol, high-density polyethylene, homopolymerized polypropylene, polycarbonate, styrene, acrylonitrile, etc.