Overview of the progress of major refining and chemical projects

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The Guangxi Petrochemical Integrated Refining and Chemical Transformation Project: The construction site for the integrated refining and chemical transformation project of PetroChina Guangxi Petrochemical Company is located in the northern part of the Qinzhou Port Industrial Zone within the Qinzhou Port Economic and Technological Development Zone. The total investment is approximately 30 billion yuan, with a land area of about 363 hectares. This includes 66 hectares of land already owned by the company (which requires demolition work). An additional 297 hectares of land needs to be acquired. The project is scheduled to be completed and put into operation within 36 months after approval. The project’s construction scope and scale include the adaptive renovation of the refining section and the construction of new chemical processing units. The adaptive renovation of the refining section entails the renovation of a 2.2 million tons per year wax oil hydrocracking unit, a 2.4 million tons per year diesel hydrotreating unit, the construction of a new carbon dioxide recovery unit, as well as the renovation of the storage and transportation systems ； The chemical processing section includes newly built facilities for 1.2 million tons per year of ethylene cracking, 450,000 tons per year of HDPE, 500,000 tons per year of FDPE, 20+100,000 tons per year of EVA, 2×300,000 tons per year of polypropylene, 6/15 tons per year of SBS/SSBR, 500,000 tons per year of gasoline hydrogenation (including styrene extraction), 300,000 tons per year of aromatic extraction, 160,000 tons per year of butadiene extraction, 10/60,000 tons per year of MTBE/butene-1, and 50,000 tons per year of hexene-1; in addition, there are wastewater treatment plants, chemical storage and transportation systems, as well as utility facilities. Latest progress of the project: On November 18, 2021, a mobilization and deployment meeting for promoting the project was held. The 11 million tons per year oil refining and high-end synthetic materials project at Sinopec Ningbo Zhenhai Refining & Chemical Co., Ltd. involves an investment of 41.64 billion yuan; the construction period spans from November 2021 to May 2023, and the site of construction is in Zhenhai District, Ningbo City, Zhejiang Province. Main construction contents and scale: A total of 11 oil refining units, including a 11 million tons/year atmospheric distillation unit (with a 2.2 million tons/year light hydrocarbon recovery facility) and a 5.6 million tons/year residue hydrotreating unit; 9 high-end synthetic new material production units, such as a 600,000 tons/year propane dehydrogenation unit and a 400,000 tons/year acrylonitrile complex; as well as off-site works, related utility systems, and auxiliary facilities. Latest project progress: On August 18, 2021, the tender for the project’s engineering design (Section 5) was issued. The Gulei Refining and Petrochemical Integration Project is located in Zhangzhou, Fujian. It is a petrochemical project aimed at producing high-end chemical products. The total investment for the first phase of this project is 27.8 billion yuan. It mainly includes a million-ton ethylene plant, as well as 9 chemical processing units such as an ethylene oxide/ethylene glycol plant with a capacity of 100,000/700,000 tons per year, a styrene plant with a capacity of 600,000 tons per year, a polypropylene plant with a capacity of 350,000 tons per year, an ethylene-vinyl acetate resin plant with a capacity of 300,000 tons per year, and a thermoplastic elastomer plant with a capacity of 100,000 tons per year. Additionally, there are supporting utility systems and a port facility with an annual handling capacity of 7.8 million tons. The project mainly produces 18 main products such as polypropylene, ethylene glycol, and styrene, with an expected total output of 3 million tons per year. The annual output value is expected to reach 26 billion yuan, which can drive downstream industries in the region worth over 100 billion yuan. Latest project progress: On August 18, 2021, Phase 1 of the project came online. Beihai Refining & Chemicals Structural Adjustment and Transformation Project: This project mainly involves the construction of a 1.2 million tons per year LTAG plant, a hydrogen production facility with a capacity of 3,000 standard cubic meters per hour, as well as associated utility systems and storage and transportation facilities. The total investment in the project was 980 million yuan. Construction began in September 2019, it was handed over in April 2021, and it became fully operational in August 2021. Once the project is put into operation, it will be possible to convert the low-quality diesel produced through catalytic cracking into high-octane gasoline or light aromatics of high standard, thereby enabling their value-added utilization. At the same time, production energy consumption will be reduced, the product structure will be further optimized, and economic benefits will increase; this could result in an annual increase in revenue of 2.7 billion yuan and an annual increase in tax payments of 1.5 billion yuan. Latest project progress: On August 12, 2021, the project was put into full operation. The 1-million-ton/year ethylene and oil refining expansion project in Quanzhou, Sinochem: This project is an investment made by Sinochem Group, based on the successful operation of its 12-million-ton/year oil refining project in Quanzhou. Following thorough and scientific evaluations, it aims to further optimize the energy business industrial chain of Sinochem Group and foster a world-class enterprise with global competitiveness. It represents another major project within Sinochem Group’s core business sector—the energy industry. The total investment in the project amounts to approximately 32.5 billion yuan. It is located in the Quanhui Petrochemical Industrial Park in Quanzhou City, Fujian Province. Building on an existing oil refining facility with a capacity of 12 million tons per year, the project will see this capacity increased to 15 million tons per year through upgrades and expansions. Additionally, a new ethylene production facility with a capacity of 1 million tons per year will be constructed, covering an area of about 6,541 mu. There are 11 units in the chemical processing sector, including an ethylene cracking unit with a capacity of 1 million tons per year, an EVA production unit with a capacity of 100,000 tons per year, an HDPE production unit with a capacity of 400,000 tons per year, EO/EG production units with capacities of 200,000/500,000 tons per year respectively, PO/SM production units with capacities of 200,000/450,000 tons per year respectively, a PP production unit with a capacity of 350,000 tons per year, a butadiene extraction unit with a capacity of 120,000 tons per year, MTBE/butene-1 production units with capacities of 100,000/30,000 tons per year respectively, a pyrolytic gasoline hydrogenation unit with a capacity of 500,000 tons per year, an aromatic extraction unit with a capacity of 350,000 tons per year, and a p-xylene production unit with a capacity of 800,000 tons per year ； There are 2 sets of refining units, including a newly built atmospheric distillation unit with a capacity of 3 million tons per year and a refinery dry gas pre-purification unit with a capacity of 450,000 tons per year. Latest project progress: On July 14, 2021, the chemical production line was fully operational. The Shenghong Refining and Chemical Integration Project: The refining and chemical integration project of Shenghong Refining (Lianyungang) Co., Ltd. is located in Lianyungang City, Jiangsu Province. With a total investment of around 77.5 billion yuan, it involves the construction of facilities for refining 16 million tons of oil per year, producing 2.8 million tons of aromatics per year, and manufacturing 1.1 million tons of ethylene per year. The first set of units is scheduled to begin operations at the end of 2021. The main products include National VI gasoline, aviation fuel, National VI diesel, p-xylene, sulfur, ethylene glycol, acrylonitrile, EVA, etc. All the petroleum coke produced internally is used for hydrogen production and is not sold externally. The project construction includes the main structure, as well as supporting facilities such as wharf projects, storage and transportation systems, auxiliary facilities, and environmental protection measures. The main project is located in the Lianyungang Petrochemical Industry Base in Xuwei New Area, Lianyungang City. It includes 27 units such as a crude oil distillation unit with a capacity of 16 million tons per year, a light hydrocarbon recovery unit with a capacity of 4 million tons per year, a kerosene hydrogenation unit with a capacity of 1.8 million tons per year, a delayed coking unit with a capacity of 2 million tons per year, a combined heavy oil hydrogenation complex (3.5 million tons per year of hydrocracking + 3.6 million tons per year of hydrotreating of residue oil + 3.3 million tons per year of hydrotreating), a gasoline and diesel hydrogenation unit with a capacity of 3 million tons per year, a sulfur recovery unit with a capacity of 600,000 tons per year, 2 continuous reforming units each with a capacity of 3.2 million tons per year, a p-xylene production unit with a capacity of 2.8 million tons per year, an ethylene production unit with a capacity of 1.1 million tons per year, an acrylonitrile production unit with a capacity of 260,000 tons per year, a methyl methacrylate (MMA) production unit with a capacity of 90,000 tons per year, an ethylene-vinyl acetate copolymer (EVA) production unit with a capacity of 300,000 tons per year, and an integrated gasification combined cycle power generation (IGCC) system. Latest project progress: On June 30, 2021, the first batch of core equipment was successfully delivered. In April 2021, the project completed the delivery of the first batch of works. The 1 million tons per year ethylene and refinery expansion project of Hainan Refining & Chemical Co., Ltd. The 1 million tons per year ethylene and refinery expansion project carried out by Sinopec Hainan Refining & Chemical Co., Ltd. is located in the northwest part of the Yangpu Economic Development Zone in Hainan Province; the expansion of the refinery involves an increase in its processing capacity to 5 million tons per year, with a 1 million tons per year ethylene production facility being built simultaneously. The project mainly consists of the main structure, auxiliary facilities, utility systems, environmental protection facilities, and off-site works. The main project of the refinery facility consists of 11 units in total, namely a 5 million tons per year atmospheric and vacuum distillation unit, a 1 million tons per year light hydrocarbon recovery unit, a desulfurization and dewaxing unit, a 2.5 million tons per year hydrocracking unit, a 2 million tons per year diesel hydrogenation unit, a 1.6 million tons per year continuous reforming unit, a 600,000 tons per year para-xylene (PX) unit, an acidic water stripping unit, a solvent regeneration unit, a sulfur recovery unit, and a catalytic feed preheating unit. The main project of the chemical plant area consists of 15 units, namely the ethylene unit, the cracked gasoline hydrogenation unit, the butadiene extraction unit, the MTBE butene-1 unit, the aromatic extraction unit, the low-density polyethylene unit, the high-density polyethylene unit, the ethylene glycol unit, the loop reactor polypropylene unit, the gas-phase polypropylene unit, the acrylic acid and esters unit, the styrene-butadiene rubber unit, the butadiene rubber unit, the coal gasification hydrogen production unit, and the sulfur recovery unit. Latest project progress: As of June 2, 2021, more than half of the construction work has been completed on the wharf embankments and breakwater facilities associated with the project. On January 1, 2021, Wood signed a contract worth over $120 million with Sinopec Hainan Refining & Chemical Co., Ltd. to provide it with engineering, procurement, and construction (EPC) services. Hengyi Brunei Refining and Chemical Integration Project Phase II: The investment amount for this phase is approximately 13.7 billion US dollars (about 92.432 billion yuan). It includes a refinery with an annual capacity of 14 million tons, a facility for producing refined oil products with an annual capacity of 6.33 million tons, a plant for producing p-xylene with an annual capacity of 2 million tons. Additionally, there are facilities for producing PTA at an annual capacity of 2.5 million tons, PET at 1 million tons, ethylene at 1.65 million tons, as well as facilities for further processing these products. The project is expected to take 3 years to complete, with operations starting in 2023. It is anticipated that after commencing production, the factory will generate an additional annual revenue of $11 billion, along with an average annual net profit of $1.7 billion. Latest project progress: On May 22-23, 2021, a review meeting for the overall design of Phase II of the project was held. Zhejiang Petrochemical’s 40 million tons per year integrated refining and chemical processing project: The second phase of this project, carried out by Zhejiang Petrochemical Co., Ltd., has a capacity of 40 million tons per year and is located on Yushan Island in Daishan County, Zhoushan City, Zhejiang Province. The total investment for this project amounts to 82.93 billion yuan; 20 billion yuan is planned to be invested in 2020. The total land area required for the project is 500,000 square meters, with the construction period spanning from 2020 to 2022. The main new construction projects include a refinery with an annual capacity of 20 million tons, a p-xylene plant with an annual capacity of 4 million tons, an ethylene plant with an annual capacity of 1.4 million tons, as well as downstream processing units. The supporting projects consist of storage and transportation facilities, auxiliary systems, and environmental protection measures. Upon completion, the project will have an annual production capacity of 20 million tons of refined oil, 4 million tons of paraxylene, and 1.4 million tons of ethylene. It is expected to generate an annual output value of 102.9 billion yuan, with taxes and profits totaling 34.3 billion yuan. An integrated industrial chain comprising “crude oil – aromatics (PX), olefins, polypropylene, and polyethylene” will be established, thereby enhancing China’s influence in the ethylene and paraxylene industries. Latest project progress: On April 16, 2021, the No. 2 ethylene plant with a capacity of 1.4 million tons per year under Phase II of the project was successfully commissioned on its first attempt. On January 22, 2021, in order to advance the construction of Phase II of the 40-million-ton-per-year integrated refining and petrochemical project undertaken by Zhejiang Petrochemical Co., Ltd., a holding subsidiary of Rongsheng Petrochemical Co., Ltd., Zhejiang Petrochemical, as the borrower, signed a “Syndicated Loan Agreement” with a syndicate of 10 banks. The syndicate agreed to provide the borrower with a medium- to long-term loan facility worth RMB 52.7 billion or its equivalent in foreign currency. The PetroChina Guangdong Petrochemical Integration Project includes a refinery with a capacity of 20 million tons per year (including 2.6 million tons per year of aromatics) and an ethylene plant with a capacity of 1.2 million tons per year. The project is scheduled to be fully completed and put into operation in 2022. Once it is completed and put into operation, it will **reduce China’s reliance on foreign imports for aromatic hydrocarbons and enhance its self-sufficiency in raw materials. The project was funded jointly by CNPC and Venezuela’s **Petroleum Company (PDVSA)**, and is managed and operated under a joint-stock enterprise model; initially, CNPC held a 60% stake in the refining portion while PDVSA held 40%. The refinery is located in the area west of the mouth of the Longjiang River, within the Dainanhai Petrochemical Industrial Zone in Jieyang, Guangdong ； The crude oil terminal storage area is located in the Shibeishan area to the southeast of Huilai County ； The crude oil terminal is located in the waters near the Shibishan Lighthouse in Jinghai Town ； The refined oil terminal is located in the waters to the west of the Longjiang River estuary in Dainan Sea. The project uses 10 million tons per year of Venezuelan Merey 16 crude oil and 10 million tons per year of Middle Eastern mixed crude oil as raw materials. The refining area 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 processing area manufactures chemical products such as HDPE, LLDPE, PP, SM, and butadiene. Latest project progress: As of April 2021, the petrochemical integration project in Guangdong has completed most of the civil engineering work and has entered a phase where installation activities are carried out on a full scale.