Total investment of 10 billion yuan! Bohai Chemical plans to build a comprehensive utilization project for light hydrocarbons

Thread Content

On the evening of May 5, Bohai Chemical announced that its wholly-owned subsidiary, Tianjin Bohai Petrochemical Co., Ltd. (referred to as “Bohai Petrochemical”), had signed an Investment Cooperation Framework Agreement with the Tianjin Economic-Technological Development Area Administration (referred to as “Tianjin ETDA”) to invest in and build the “Bohai Petrochemical Light Hydrocarbons Comprehensive Utilization Project” in Tianjin ETDA. The total investment in the project is approximately 10 billion yuan, which will be used to build a light hydrocarbon comprehensive utilization facility as well as related utility systems and auxiliary production facilities. The project covers an area of approximately 490,000 square meters. Construction is scheduled to begin in 2022, with completion and operation set for 2025. Under the agreement, Tianjin Economic-Technological Development Area will provide active support to Bohai Petrochemical by establishing a dedicated task force to assist with all aspects of the project, including business registration, tax management, foreign exchange regulation, employee recruitment, and company operations ； Bohai Petrochemical is encouraged to introduce upstream, downstream, and related businesses to the Tianjin Economic Development Zone in the future; the zone will provide support for such businesses, with the specific details of this support to be specified in a separate agreement. The main business of Bohai Chemical consists of two parts: the propylene and propane sales operations conducted by its wholly-owned subsidiary Bohai Petrochemical; and the data card products, printing products, intelligent application systems, and supporting equipment produced by its Magnetic Card Division. The annual report shows that Bohai Petrochemical has been focusing on the production of propylene from propane. Its products are mainly sold in Shandong Province and distributed throughout North China; it is a significant producer of propylene in the Beijing-Tianjin-Hebei region. Its downstream customers operate in industries such as polypropylene, butyl octanol, propylene oxide, phenol acetone, and acrylic acid. It is reported that the “Bohua Light Hydrocarbons Comprehensive Utilization Project” is a key municipal project that aligns with **industrial policy development plans as well as Tianjin’s strategies of building the city through manufacturing and the “Tianjin+” initiative. The project will make full use of the geographical advantages of the Tianjin Nangang Industrial Zone and its role in serving the Beijing-Tianjin-Hebei region as well as inland areas. It will highlight the company’s strengths and characteristics, pursue the expansion and improvement of the industrial chain, and strive to create a first-class project featuring integrated operations across the entire value chain. Bohai Chemical stated that given the large scale and significant investment required for the projects under the agreement, the company will pursue various methods and channels to raise the funds needed for these projects, including but not limited to bank loans for project financing, equity financing, corporate bonds, and convertible bonds. The previously released “List of Key Reserve Projects in Tianjin for 2022” included the Tianjin Bohai Chemical Light Hydrocarbons Comprehensive Utilization Project.