Satellite Chemical invests 12.2 billion yuan in the second public announcement for the Lianyungang α-olefins project

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! Satellite Chemical invests 12.2 billion yuan in Lianyungang α-olefin project; second public announcement issued. On May 22, Xuwu New Area issued a notice announcing the second round of public consultation regarding the Phase 1 of the α-olefin comprehensive utilization and high-end new materials industrial park project carried out by Lianyungang Petrochemical Co., Ltd. Project Name: α-Olefin Comprehensive Utilization High-End New Materials Industrial Park Project (Phase I)
Nature of Construction: New construction
Constructor: Lianyungang Petrochemical Co., Ltd.
Location of Construction: Within the Petrochemical Industry Base in Xuwei New Area, Lianyungang
Construction Content: The project is constructed in two phases; the evaluation covers Phase I. The construction activities in Phase I include 2 units capable of producing 100,000 tons per year of α-olefins (LAO), 1 unit capable of producing 900,000 tons per year of polyethylene (45×2) #3, 1 unit capable of producing 450,000 tons per year of polyethylene #5, 1 unit capable of producing 120,000 tons per year of butadiene extraction #2, 1 unit for aromatic hydrocarbon processing with a capacity of 260,000 tons per year, as well as a 2 million tons per year raw material processing unit #3 (including associated WAO equipment). Additionally, storage facilities, LNG storage tanks, auxiliary facilities, and off-site pipelines are also part of this phase’s construction. (The contents of the phase II construction include: 3 sets of 100,000 tons/year a-olefin (LAO) production units, 3 sets of 200,000 tons/year polyolefin elastomer (POE) production units, 1 set of 30,000 tons/year polya-olefin (PAO) production unit, 1 set of 350,000 tons/year Poly** production unit No. 6, along with a supporting 2 million tons/year raw material processing unit No. 4, storage facilities, auxiliary facilities, and off-site pipelines and other related projects.) The construction contents of the second phase are not included in this environmental impact assessment. ) Labor allocation and working system: The project will require an additional 400 employees, with a four-shift, two-shift operation system, resulting in 8,000 hours of work per year; Construction period: The total construction time for the project is 36 months. According to previous environmental impact assessment data, the investment required for this project is approximately 12.15015 billion RMB. On April 23, 2024, Satellite Chemical mentioned the alpha-olefin project during a visit by regulatory authorities. How are the company’s α-olefin and POE projects performing? The industrial pilot plant for the α-olefins and POE projects is currently operating smoothly; the catalyst, product yield, and quality have all met the expected targets. Some of the products have already been tested and evaluated by downstream customers. The process package for the industrial plant is under development, with construction scheduled to begin in the second half of this year, aiming for completion and operation by 2025. It is set to become one of the leading plants in China, enabling the utilization of a first-mover advantage in the market. The company’s independently developed technology for the high-selective polymerization of ethylene to produce high-purity 1-octene possesses high technical barriers; it differs significantly from foreign technologies and offers clear advantages. In addition to providing raw materials for POE, it supplies copolymer monomers such as hexene and octene for the production of high-grade polyethylene in the company’s Phase 3 and Phase 4 projects, thereby enabling domestic substitution.