The overall design for CNPC Guangxi Petrochemical’s integrated refining and chemical processing transformation project has been completed!

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On November 30, 2022, the overall design for the refining and chemical integration transformation project of CNPC Guangxi Petrochemical Company was successfully completed. On November 25, 2022, Zong Yishan, General Manager and Deputy Party Secretary of Guangxi Petrochemical Company, presided over a review meeting for the overall design of the refining and chemical integration transformation project. The issues raised at the preliminary review meeting were discussed, and the requirements for modifying the overall design were further clarified. In accordance with the recommendations put forward at the overall design review meeting, the company reconnected with various design institutes and, based on the project feasibility study report, further standardized the design details to ensure that the content and depth of the overall design met the requirements specified in the \"Regulations on the Content of Overall Design for Large-Scale Petrochemical Construction Projects\", thereby achieving optimized investment levels and better control over budget estimates. On November 20, 2022, the company held a pre-review meeting for the overall design of the refining and chemical integration transformation project. More than 120 people, including external experts, design representatives, and staff from various specialized departments, reviewed 46 design documents, and addressed over 600 various issues with the design institute. On November 18, 2022, the preliminary draft of the overall design for the refining and chemical integration transformation project was completed. On July 27, 2022, Qinzhou City and CNPC Guangxi Petrochemical Company signed a project investment agreement for the transformation and upgrading of CNPC Guangxi Petrochemical’s refining and chemical integration project. China National Petroleum Corporation’s Guangxi Petrochemical Integration and Transformation Project is a major project under the petrochemical industry development plan. It is also a strategic initiative by China National Petroleum Corporation aimed at shifting the focus from oil production to chemical production in order to optimize the industry structure. This project has been included in the **Petrochemical Industry Development Plan**, as well as among the top 10 industrial projects to be promoted in the autonomous region in 2022, and it is considered a key industrial project under the region’s “Double Hundred Double New” initiative. The project is located in the Jingu area of the Petrochemical Park within the Qinzhou Port Economic and Technological Development Zone. With a total investment of around 30.5 billion yuan, it involves the construction of 14 chemical processing units, including one ethylene cracking unit with an annual capacity of 1.2 million tons, as well as 2 refining units for diesel adsorption and dearomatization with an annual capacity of 2 million tons. Additionally, some existing refining units will be upgraded or rebuilt, along with corresponding utility systems, storage and transportation facilities, and auxiliary production facilities. The main products produced will be polyethylene, polypropylene, synthetic rubber, and ethylene-vinyl acetate copolymer (EVA). The project is scheduled to be handed over in phases by the end of 2024, with full completion and operation starting in 2025. Based on a crude oil price of $60 per barrel, once the project is operational, it will generate an additional 11.2 billion yuan in industrial output annually, bring in 1.76 billion yuan more in tax revenue, reduce the consumption of refined oil by 3.49 million tons, and increase the production of chemical products by 3.06 million tons. It also promotes the development of high-value-added products such as advanced polyolefins, EVA (ethylene-vinyl acetate copolymer), and solution-polymerized rubbers. This helps to address the current imbalance between excess refining capacity and a shortage of basic chemical raw materials, fills the gap in the region’s high-end chemical materials industry, and meets the market demands of areas along the Belt and Road Initiative and the Western Land-Sea New Corridor. It holds great significance for the high-quality development of Guangxi’s industry, contributing to the establishment of a new development pattern and the acceleration of the creation of a trillion-yuan-scale high-end materials industry cluster. Taking synthetic rubber products as an example, over the years China National Petroleum has allocated approximately 30,000 tons per year of styrene-butadiene-styrene block copolymer (SBS) products to the South China region, while the amount of solopolymerized styrene-butadiene rubber (SSBR) products allocated was less than 10,000 tons per year; no SSBR/SBS products are imported into the Southeast Asian market. However, compared to current consumption levels of around 600,000 tons per year in South China and as high as 2.75 million tons per year in Southeast Asia, the import of SSBR/SBS in China is severely insufficient; its market share is low, and the brand impact of these products has little effect on downstream enterprises. The 200,000 tons per year SSBR/SBS plant under Guangxi Petrochemical’s integration and transformation project features 4 production lines (one 60,000 tons per year continuous polymerization SSBR line, one 60,000 tons per year batch polymerization SSBR line, and two SBS lines, each with a capacity of 40,000 tons per year), with completion scheduled for 2025. Once the project is put into operation, Guangxi Petrochemical will make full use of its advantages such as low inventory costs, low logistics costs, short transportation times, and rapid market response, so as to ensure that its rubber products reach markets in South and Southwest China as well as Southeast Asia, and to develop new core areas and industrial clusters for the production of SSBR/SBS in China.