Hohhot Petrochemical is advancing a project to produce ethylene from ethane, with a total investment of 24.31 billion yuan and an annual production capacity of 1.2 million tons
Thread Content
Recently, Hohhot Petrochemical Company set clear requirements for accelerating the progress of the 1.2 million tons per year ethane-to-ethylene production project. It emphasized that this project should be used as an opportunity to plan ahead, coordinate efforts effectively, and operate efficiently, so as to ensure the orderly advancement of the company’s transformation and upgrading initiatives. To steadily advance the preliminary work for the project, Hohhot Petrochemical Company established a task force for the preliminary phase of the 1.2 million tons per year ethane-to-ethylene production project, and made multiple visits to the relevant departments in Ordos City and Wushen Banner to learn about the relevant policies. To date, more than 80 various documents have been obtained from local authorities, including development plans, environmental impact assessment plans, land delivery (relocation) arrangements, and new energy quotas; the commitments regarding new energy quotas as well as the conditions for the Tuk Park have been fulfilled. On August 4, 2023, Hohhot Petrochemical Company held a special meeting on the 1.2 million tons per year ethane-to-ethylene project to discuss measures for advancing the approval and implementation of this project. Next, Hohhot Petrochemical will, on the one hand, refine the target tasks and responsibility allocations, work in coordination with local authorities, focus on the key milestones of the projects, and accelerate progress. With a goal of completing the \"design+construction\" phase within 6+24 months, it will ensure that both the 1.2 million tons per year ethane-to-ethylene project and the project for the advanced processing of 20 billion cubic meters of natural gas from the Sulige gas field are completed simultaneously. On the other hand, it strengthens cooperation with various affiliated enterprises within the industrial park where the project is located, actively promotes the development of businesses related to \"dual carbon goals and three innovations,\" makes every effort to ensure energy security, and helps the group company advance toward high-quality development in order to become a world-class, sustainable comprehensive international energy company. In 2023, Hohhot Petrochemical began planning a project to produce ethylene from ethane at a capacity of 1.2 million tons per year. The project is intended to be built in the Tuk Industrial Park within the Sulihe Economic Development Zone in Ordos, Inner Mongolia, covering an area of 252 hectares. The project uses ethane, liquefied gas, and light hydrocarbons supplied by the proposed natural gas deep processing plant at the Sulihe Gas Field, the Shanggu Natural Gas Processing Plant at the Changqing Oil Field, and the Jiaxian Natural Gas Processing Plant at the Jidong Oil Field as raw materials. Acetic acid is purchased externally; the production line manufactures products such as low-density polyethylene (LLDPE), high-density polyethylene (HDPE), metallocene polyethylene (mLLDPE), polypropylene, vinyl acetate, MTBE, and pyrolysis fuel oil, while hydrogen and CO2 are produced as by-products. The main construction activities include building 12 units in total: 1200,000 tons per year of ethylene cracking capacity, 400,000 tons per year of HDPE (high-density polyethylene) production capacity, 400,000 tons per year of FDPE (full-density polyethylene) production capacity for two units, and 1.3 million tons per year of CCUS capacity. Additional facilities such as auxiliary production systems, plant-wide utility systems, dedicated railway lines outside the plant, and residential areas will also be constructed. The total approved investment for the project is 24.332 billion yuan; the average annual operating revenue during the production period is 12.546 billion yuan, while the average annual profit during the production period is 3.127 billion yuan.
The second phase of the ethylene production project using ethane from the Tarim region: Recently, China National Petroleum Corporation’s Dushanzi Petrochemical Company held a meeting to advance the construction of this 1.2 million tons per year ethylene production facility in the Tarim region, marking the full onset of the construction phase for this project. With this, Dushanzi Petrochemical has embarked on its journey to become a \"chemical aircraft carrier\" with an annual ethylene production capacity of over 3 million tons. Project Name: Dushanzi Petrochemical Tarim 1.2 million tons/year Phase II Ethylene Project. Construction Scale: With an investment of 21.88 billion yuan, it is a \"model project\" launched by China National Petroleum Corporation to promote the transformation and upgrading of its refining and chemical operations and achieve high-quality development. Construction contents: 1.2 million tons per year of ethylene, along with 11 main production units, including two sets of 450,000 tons per year of high-density polyethylene, three sets of 300,000 tons per year of low-density polyethylene, and one set of 450,000 tons per year of polypropylene. Project progress: Fully entered the construction phase.
The Yulin project of Lanzhou Petrochemical has a Phase II plan, which is based on the ethane route. Project Name: Lanzhou Petrochemical Company’s Transformation and Upgrading Project – Ethylene Modification Project. Scale of Construction: The total investment in this project is approximately 23.17 billion yuan. The modification plan for this project can be divided into three parts: (1) Ethylene modification, (2) Refining facility modification, and (3) Development of downstream chemical industries). This approach aims to achieve high-quality development for Lanzhou Petrochemical Company in terms of transformation and upgrading, as well as sustainable, low-carbon, and environmentally friendly operations. Construction contents: Construction of a new 20,000-ton/year octene-1 plant, a 100,000-ton/year POE plant, a 140,000-ton/year EVA plant, a 450,000-ton/year high-density polyethylene plant, a 400,000-ton/year polypropylene plant, a 700,000-ton/year pyrolysis gasoline hydrogenation plant, and a 700,000-ton/year aromatic extraction plant. Project progress: Second public notice for environmental impact assessment is being conducted.