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The integrated refining and chemical projects of the four major private enterprises (Hengli Petrochemical, Zhejiang Petrochemical, Shenghong Petrochemical, and Hengyi Petrochemical) are following one after another； The four major foreign chemical companies also refused to be outdone; seizing the opportunities presented by foreign investment in China, they invested in olefin projects along China’s coast. What is the progress so far? China is entering a new cycle of expansion in its petrochemical production capacity, with efforts being made to build refineries with a capacity of tens of millions of tons along its coastal areas. It seems that a capacity of 10 million tons represents the starting point for competition in the future. More and more refineries are racing toward this starting line. The integrated refining and chemical projects of the four major private enterprises (Hengli Petrochemical, Zhejiang Petrochemical, Shenghong Petrochemical, and Hengyi Petrochemical) are following one after another ； The four major foreign chemical companies also did not want to be left behind; they seized the opportunities presented by foreign investment in China and invested in olefin projects along the country’s coast. Among these, the project that is progressing fastest is Exxon Mobile’s 12 million tons per year ethylene and related chemical products complex in Huizhou. It is expected that BASF and Sinopec’s 1 million tons per year ethylene steam cracking plant in Nanjing will also begin operations in 2019 ； The BASF Guangdong integration project and the SABIC Fujian integration project involve many uncertainties, so it is necessary to continue monitoring the progress of these projects. https://mmbiz.qpic.cn/mmbiz_gif/dczgnL1qJAtsuPhibUKg3ffAffTbGNiaIdxJ0FLjiaTWzIANKn0kyW6eugX5jHTRicuzjdo0iadBr2eibyiaeh4dmDgGw/640?wx_fmt=gif ◆◆ExxonMobil◆◆ 1) Fastest progress: First public announcement of environmental impact assessment information for ExxonMobil’s Huizhou chemical complex project. Environmental impact assessment announcement: On November 2, 2018, the first round of information related to the environmental impact assessment for ExxonMobil’s 1.2 million-ton ethylene and related chemical products complex project in Huizhou was made public. Location of construction: Sites A1, A2, A3, B1, B2, B3, C1, and C2 in the Daya Bay Petrochemical Industrial Zone, Guangdong Province. Construction content: This project involves the direct cracking of crude oil to produce ethylene and downstream high-performance polymer products, with a planned capacity of 1.2 million tons per year of polymeric-grade ethylene and 800,000 tons per year of polymeric-grade propylene. The main facilities include a crude oil steam cracking complex, a linear low-density polyethylene plant, a low-density polyethylene plant, an impact-resistant polypropylene plant, a homopolymer polypropylene plant, as well as supporting utilities, storage and transportation packaging systems, auxiliary production facilities, environmental protection facilities, and service facilities. The main products of the project include downstream chemical products derived from ethylene, as well as by-products such as fuel oil. https://mmbiz.qpic.cn/mmbiz_png/dczgnL1qJAtsuPhibUKg3ffAffTbGNiaIdG3hr5Oy7hWTl2vjhoDhQ0dlF3t3BXxZdcPoxECqVORQ6UcFzhDicCMg/640?wx_fmt=png https://mmbiz.qpic.cn/mmbiz_png/dczgnL1qJAtsuPhibUKg3ffAffTbGNiaIdG3hr5Oy7hWTl2vjhoDhQ0dlF3t3BXxZdcPoxECqVORQ6UcFzhDicCMg/640?wx_fmt=png ExxonMobil was the first to implement a system of direct supply of crude oil to cracking furnaces; the world’s first such facility was built in Singapore in 2014, with an annual production capacity of 1 million tons of ethylene ； Daya Bay: Ethylene production capacity increased to 1.2 million tons per year ； All downstream supporting polyolefin facilities: a 660,000-ton/year high-performance mPE plant, a 550,000-ton/year bimodal HDPE plant, a 430,000-ton/year high-performance impact-resistant homopolymer PP plant, and a 420,000-ton/year high-performance homopolymer PP plant – for a total of 2.06 million tons/year of polyolefins! https://mmbiz.qpic.cn/mmbiz_png/dczgnL1qJAtsuPhibUKg3ffAffTbGNiaIdG3hr5Oy7hWTl2vjhoDhQ0dlF3t3BXxZdcPoxECqVORQ6UcFzhDicCMg/640?wx_fmt=png https://mmbiz.qpic.cn/mmbiz_png/dczgnL1qJAtsuPhibUKg3ffAffTbGNiaIdG3hr5Oy7hWTl2vjhoDhQ0dlF3t3BXxZdcPoxECqVORQ6UcFzhDicCMg/640?wx_fmt=png Analysis of the rapid progress of the project: The proactive efforts of ExxonMobil’s senior management, along with strong support from China’s top leadership, are the key drivers behind the rapid advancement of this project. Additionally, the huge market potential in South China, China’s efforts to improve its business environment, policies aimed at furthering reform and opening up, as well as measures to protect intellectual property rights, all play a role in shaping ExxonMobil’s investment strategy in China ； Third, ExxonMobil’s own advanced chemical production technologies, experience in plant operation management, and project decision-making capabilities. Other project details: The total investment amount is 10 billion US dollars. The project is located in the Daya Bay Petrochemical Zone, and it will primarily produce high-tech, high-value-added advanced polyolefin products. It utilizes a domestic-exclusive technology for directly cracking crude oil to produce olefins, as well as advanced, environmentally friendly, and mature proprietary production processes. Once completed, the facility will achieve the highest production capacity among similar plants worldwide, and the resulting high-performance products will fill gaps in the domestic market. The project will be constructed in phases; the first phase includes a flexible feed steam cracking complex with an annual production capacity of 1.2 million tons of ethylene, two high-performance polyethylene production lines, and two differentiated polypropylene production lines, with an investment of around $4 billion planned. ◆◆CNOOC Shell ◆◆ 2) **The Prime Minister was present: CNOOC and Shell Group will cooperate on the construction of Phase 3 of the project in Daya Bay, Huizhou. On October 16th, local time in the Netherlands, under the witnesship of Chinese Premier ** and Dutch Prime Minister Rutte, Yang Hua, Chairman of CNOOC, and Ben van Beurden, CEO of Shell Group, signed a memorandum of understanding regarding the cooperation on the petrochemical project in Huizhou in The Hague, Netherlands. This will be the third phase of the project jointly developed by CNOOC and Shell Group in Daya Bay, Huizhou, with a total investment of several billion dollars. Under the agreement, the two parties will explore cooperation in building production facilities, with the aim of fully leveraging the advantages of industrial clusters to create a large-scale, competitively strong integrated petrochemical complex in Daya Bay that ranks among the best in the world. On May 2, CNOOC and Shell jointly announced that the second phase of the petrochemical plant in Huizhou, Guangdong – namely the second ethylene cracking unit and its related facilities – had been put into operation. The second-phase project will have an annual production capacity of 1.2 million tons of ethylene; together with the already operational SinoShell Phase 1 plant with an annual production capacity of 1 million tons of ethylene, it will become one of the largest ethylene production facilities in Asia. Project analysis: In the eyes of Dutch entrepreneurs, China’s huge consumer market, along with its ongoing efforts to increase openness and improve the business environment, are the key factors that encourage them to choose China as their investment destination. Weitzle, President of Shell Natural Gas and Energy, said, “It is thanks to China’s open policies that we have been able to achieve such rapid growth.” ” The new units of the Phase II project were constructed by CNOOC, and are owned and operated by the joint venture CNOOC Shell Petrochemical Co., Ltd. The commissioning of this project officially marks Daya Bay Petrochemical Zone’s transformation into a petrochemical industry hub in China that boasts the largest integrated refining and processing capacity, a high-level industrial structure, green and safe operations, comprehensive supporting facilities, standardized management, and high-quality development. ◆◆Sinopec and BASF sign memorandum of understanding ◆◆ 3) BASF and Sinopec sign new memorandum of understanding to build a 1 million-ton ethylene steam cracking unit. Sinopec Corporation and BASF Europe signed a memorandum of understanding in Beijing on October 28 to further strengthen their cooperation in the production of upstream and downstream chemicals in China. According to the memorandum, Zhejiang Petrochemical and Yamba Company will contribute capital in a 50:50 ratio to build a second steam cracking unit capable of producing 1 million tons of ethylene per year. Zhejiang Petrochemical and Yamba Company will receive all the products from this unit in order to develop their downstream product portfolio. The basic chemicals provided by this new steam cracking unit can further enhance the production capacity of Yangba Company’s integrated facility in Nanjing. Additionally, the two sides will also explore new business opportunities in China’s rapidly growing battery materials market. In China, the importance of alternative energy sources is increasing steadily, especially in the automotive industry, where innovation in battery materials is needed to meet the growing number of application demands. Project plan: The preliminary feasibility study is expected to be completed by the end of 2018. Project progress analysis: Compared to BASF’s integrated project in Guangdong, the progress of Nanjing’s 1 million-ton ethylene steam cracking unit will be faster! Note: The concept of integration (Verbund) is a strategic approach proposed by BASF, whereby all production facilities are interconnected to enable efficient use of products, by-products, and energy, thereby reducing production costs and minimizing the environmental impact of production. ◆◆BASF to Set Up Operations in Guangdong ◆◆ 4) $10 billion investment to build an integrated factory; BASF’s largest global investment project is expected to be located in Guangdong, China. On June 9, 2018, under the witness of Chinese Premier ** and German Chancellor Merkel, Dr. Klaus Müller, President of BASF Europe’s Executive Board, and Lin Shaochun, Deputy Governor of Guangdong Province, jointly signed a non-binding memorandum of understanding on cooperation in Berlin, Germany. Project plan: The entire project is expected to be completed around 2030, with the total investment amounting to approximately 10 billion dollars. The first batch of installations will be completed by 2026 at the latest. Project content: Phase 1 of the project includes petroleum chemical plants as the core of a complete integrated (Verbund) system. A steam cracking unit with a planned annual production capacity of 1 million tons of ethylene will serve as the starting point for the value chain of the new integrated complex. In subsequent phases, multiple sets of downstream facilities will be established to provide more customer-oriented products and solutions for industries such as transportation and consumer goods. Upon completion, the facility will become BASF’s third-largest integrated production site in the world, following Ludwigshafen in Germany and Antwerp in Belgium. Project investment analysis: “China is the largest chemical market in the world, accounting for around 40% of the global market share. It plays a leading role in the growth of global chemical production, and China will also be an important driver of chemical innovation,” said Dr. Klaus Müller, Executive Board Member of BASF Europe. ◆◆SABIC Fujian Petrochemical Integration ◆◆ 5) SABIC plans to build a \"world-class petrochemical plant\" in Fujian! With giants entering the market, the landscape of the chemical industry may change! On September 11, Saudi Basic Industries Corporation (SABIC) said it plans to build a new petrochemical integrated complex in Fujian Province, China, but there is no \"specific timeline\" at present. The company has signed a memorandum of understanding with Fujian Province **. The company said, “The memorandum of understanding is part of SABIC’s strategy to diversify its business, seek new investment opportunities, and strengthen its position in the Chinese market.” ” Project analysis: Since only a memorandum of understanding has been signed, there are many uncertainties surrounding the project; so, could it end up being on hold for a long time, just like other large-scale projects? Source: New Chemical Projects, exclusively compiled by “Polyolefin Professionals”. Disclaimer: The content contained herein is sourced from the Internet and other public platforms such as WeChat official accounts. We maintain a neutral stance regarding the views expressed in it, and it is provided for reference only and for purposes of discussion. The copyright of the reproduced articles belongs to the original authors and institutions; if there is any infringement, please contact us to have it removed.