Just now! Construction of CNPC’s world-class refining and chemical complex begins!

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Reporter | Meng Qinglu Editor | Zhou Wenxue Reporting | Guan Guan, Xiumei Jieyang is full of vitality. This morning, the launching ceremony for the construction of the 20-million-ton petrochemical integration project of Sino-Vietnam Guangdong Petrochemical was held grandly at the construction site of the Dainanhai Petrochemical Industrial Park in Jieyang. Wang Yilin, Secretary of the Party Leadership Group and Chairman of China National Petroleum Corporation, and Lin Shaochun, Member of the Guangdong Provincial Party Committee and Executive Vice Governor, attended the launch ceremony and delivered speeches. Duan Liangwei, vice president of CNPC, presided over the meeting, while Qin Weizhong, also vice president of CNPC, made a speech. In his speech, Wang Yilin extended warm congratulations on the launch of the project construction, offered kind regards to the cadres, employees, and all those involved in the preparatory work for the project, and expressed sincere gratitude to the Guangdong Provincial Party Committee and Government, as well as the Jieyang Municipal Party Committee and Government, for their long-term concern and support for the development of China National Petroleum Corporation. Wang Yilin said that Guangdong is at the forefront of reform and opening up, being the largest economic province in the country; it plays an important role in providing support and setting an example in achieving the \"Two Centenary Goals.\" Jieyang is an important link in Guangdong’s efforts to develop a coastal economic belt, with very significant geographical advantages. As a key state-owned enterprise and the largest oil and gas production and supply company in China, CNPC has been committed to expanding its oil and gas operations in Guangdong over the years. China National Petroleum Corporation and Guangdong Province signed a strategic cooperation agreement yesterday, marking a new advancement in their friendly cooperative relations. The Guangdong Petrochemical Project is an important part of China National Petroleum Corporation’s international oil and gas cooperation as well as the transformation and upgrading of its domestic refining and chemical processing operations. Building a model project like Guangdong Petrochemical, one that features high standards, large scale, and centralized processing of heavy oil, will surely open a new chapter in revitalizing the real economy, promoting high-quality development, deepening reform and opening up, building the Maritime Silk Road, and achieving mutual benefit for both the region and enterprises. CNPC will make full use of its strong capabilities in project construction, organize tasks scientifically and plan them meticulously to complete the project construction with high quality, and go all out to turn Guangdong Petrochemical into a leading heavy oil processing base in China and at the international level. In his speech, Chairman Wang Yilin said that Lin Shaochun, member of the Guangdong Provincial Party Committee and executive vice governor, noted that the layout of this project will help to foster the growth of enterprises in the upstream and downstream sectors of the petrochemical industry in eastern Guangdong, serving as an important driving force for the development of the coastal economic belt. It will also play a significant role in helping Guangdong Province advance reforms in the energy supply sector, promote coordinated development across the \"one core, one belt, and one region\" framework, and achieve high-quality development. Guangdong Province will go all out to ensure the proper implementation of various infrastructure and support measures, providing an excellent business environment and high-quality service to facilitate the construction of these projects. This will help to accelerate the completion of these projects and their early commissioning, thereby contributing to Guangdong’s pursuit of high-quality development, its goal of being at the forefront in four areas, and its role as a model for other regions. Following the launch ceremony, Wang Yilin inspected the construction site of the Guangdong Petrochemical project, listened to the introductions provided by the responsible officials from Guangdong Petrochemical, and gained a detailed understanding of the progress of the project’s construction plans. A brief overview of Guangdong Petrochemical: This is China National Petroleum Corporation’s first base-type refinery. The Sino-Vietnamese Guangdong Petrochemical project is located in Jieyang City, Guangdong Province. The project is an integrated oil refining and chemical complex, with a designed refining capacity of 20 million tons per year, 1.2 million tons per year of ethylene, and 2.6 million tons per year of aromatics. The project covers a total area of 9.5 square kilometers and includes two terminals for crude oil and refined products. With a total investment of 65.43 billion yuan, it is the largest refining and chemical project invested in by Sinopec during its 13th Five-Year Plan period. In the refining sector, Guangdong Petrochemical uses 10 million tons per year of Venezuelan Merey 16 crude oil and 10 million tons per year of Middle Eastern heavy oil as raw materials. This refining complex primarily produces high-quality, low-cost ethylene feedstocks, as well as clean fuels such as gasoline, aviation kerosene, and diesel, as well as certain aromatic products like p-xylene and toluene. The chemical production complex manufactures chemical products such as high-density polyethylene, linear low-density polyethylene, polypropylene, styrene, and butadiene. In addition to the refinery itself, Guangdong Petrochemical will also build two terminals for crude oil and refined products. Near the refinery area, there will also be an ABS plant built and operated by Jilin Petrochemical Company, as well as the Jieyang National Oil Storage Base Co., Ltd.; these facilities will together form CNPC’s refining and petrochemical base in South China, and it will also be CNPC’s first base-type refinery. The history of Guangdong Petrochemical: The Guangdong Petrochemical project originated from a partnership between CNPC and Petróleos de Venezuela. Under the agreement signed by the two parties in 2006, a refinery was to be built in Guangdong, China, in order to process the heavy oil extracted in Venezuela. In 2009, Sinopec signed agreements with ** in Guangdong Province and ** in Jieyang City to build a world-class refinery with an annual refining capacity of 50 million tons ； The initial investment is 55 billion yuan, with an annual refining capacity of 20 million tons. Back then, the Guangdong Petrochemical Branch of China National Petroleum Corporation was established. From 2009 to 2012, the project received approval from all relevant departments including the State Council, the National Development and Reform Commission, and the Ministry of Environmental Protection; construction officially began in 2012, but it was suspended later due to changes in the domestic and international market conditions. In July 2017, CNPC held a seminar on the transformation and upgrading of its refining and chemical processing operations; the group company decided to adjust the project to an integrated refining and chemical processing project. The project gradually got on track and successively received approval from the local authorities as well as those in Guangdong Province. In November 2017, in connection with Guangdong Petrochemical’s transition from oil refining to integrated refining and chemical production, China National Petroleum Corporation conducted a feasibility study and revised the construction plan. On October 31, 2018, the Guangdong Provincial Development and Reform Commission officially issued the \"Approval on the Amendment to the Approval for the 20 million tons per year heavy oil processing project of Sinopec Guangdong Petrochemical.\" On December 5, 2018, the construction of Guangdong Petrochemical’s 20-million-ton integrated refining and chemical complex project was officially launched. In October 2021, the refinery unit will begin trial production, while the chemical processing unit will start trial production in December. What are the highlights of the Guangdong Petrochemical project? The Guangdong Petrochemical Project aims to establish a world-class, green, intelligent, and efficient refining and chemical complex in China that is capable of processing high-sulfur, acidic, and low-quality heavy oil on an international scale. The project utilizes a range of world-class technologies to ensure clean production and the delivery of green products. The project is designed as an intelligent factory, adopting a full hydrogenation process flow. The processing of heavy crude oil and the production of clean fuels reach advanced levels both domestically and internationally, with several technologies already leading those in developed countries in Europe and America. For example, the atmospheric and vacuum distillation unit employs Shell’s technology for the vacuum distillation of heavy crude oil; the hydrocracking unit uses UOP’s two-stage complete conversion hydroprocessing technology; the alkylation unit adopts Dupont’s sulfuric acid process technology... Adhering to the overall goals of zero pollution, zero accidents, and zero injuries, all environmental standards are set in accordance with the highest domestic requirements. In terms of managing waste gas, wastewater, waste residues, noise, and groundwater pollution, clean production techniques that address issues at their source, along with advanced and practical environmental protection technologies from both domestic and international sources, are utilized. It is estimated that 7.25 billion yuan will be allocated to environmental protection investments for this project, accounting for over 11% of the total investment in the project. The project has established a comprehensive management system to implement health, safety, and environmental protection measures throughout the entire process of project construction and production. A thorough risk analysis was conducted, and different risk levels were identified; corresponding safety and environmental protection measures were formulated and put into effect to ensure that all types of risks are effectively controlled. What is the significance of the Guangdong petrochemical project? The Sino-Venezuelan 20-million-ton petrochemical integration project in Guangdong is an important initiative by China National Petroleum Corporation to implement its energy security strategy, process \"two types of resources\", target \"two markets\", establish an integrated international cooperation model covering upstream, midstream, and downstream operations, and build a comprehensive international energy and petroleum company. The project has received great attention and emphasis from the Party and **leadership, as well as at all levels**. Upon completion of the project, Guangdong Petrochemical will become a world-class, green, intelligent and efficient refining and chemical complex in China capable of processing high-sulfur, acidic and heavy crude oils, with international competitiveness. It will have a significant impact on ensuring energy security, facilitating the transformation and upgrading of the refining and chemical industry, shaping a new pattern of openness for Guangdong Province under the Belt and Road Initiative, and promoting the development of the eastern Guangdong region and the Western Sea Economic Zone. Photography | Meng Qinglu