Sinopec Ningbo Engineering has won the bid for Section 1 of the foundation design work for the 150,000 standard cubic meters per hour POX hydrogen production plant, as part of Shanghai Petrochemical Company’s comprehensive technical renovation and quality improvement project

Thread Content

On November 14, the list of candidates for the first bid package of the basic design for the 150,000 standard cubic meters per hour POX hydrogen production unit as part of Shanghai Petrochemical’s comprehensive technical transformation and quality improvement project was made public. The top candidate for this bid was Sinopec Ningbo Engineering Co., Ltd. On November 14, the list of candidates shortlisted for Bid Section 1 of the basic design for the 145,000 tons per year MTBE/Butene-1 plant under Shanghai Petrochemical Company’s comprehensive technical transformation and quality improvement project was made public. The top candidate for this bid is Zhongyi Wood Engineering Co., Ltd. In response to the requirements regarding energy conservation, carbon reduction, as well as safety and environmental protection, and taking into account the economic development and market demands in Shanghai and its surrounding areas, while building on its existing corporate foundation and making full use of the advantages of integrated refining and chemical production, Shanghai Petrochemical plans to invest approximately 21.307 billion yuan. This investment will be used to carry out comprehensive technical upgrades and improvements to the company’s operations, to restructure its refining facilities, to shut down 18 existing production units such as those capable of producing 700,000 tons of ethylene per year, and to build new facilities capable of producing 1.2 million tons of ethylene per year as well as various downstream chemical products. Project Overview: Name of the construction project: Comprehensive Technical Transformation and Upgrading Project of Shanghai Petrochemical. Name of the project owner: Sinopec Shanghai Petrochemical Co., Ltd. Location of the project: Within the existing plant site of Sinopec Shanghai Petrochemical Co., Ltd., in Shihua Sub-district, Jinshan District, Shanghai. Scope of the project: This project utilizes advanced process technologies to restructure the refining facilities while maintaining the existing refining capacity of 14 million tons per year. It involves shutting down old facilities such as those for producing 700,000 tons per year of ethylene, as well as the No. 2 oxidation and No. 2 polyester units, and constructing new facilities for producing 1.2 million tons per year of ethylene and related new materials, thereby improving the company’s safety and environmental performance. Project investment amount and source of funds: The company plans to invest approximately 21.307 billion RMB, with the funds coming from the company’s own resources. Project construction period: The construction period for the main components of the project is approximately 3 years, while the construction period for other facilities is about 5 years; the actual construction progress will determine the final timeline. Refining units: This project involves the construction of 10 new refining units and the renovation of 10 more, with 7 units being newly built and 3 units being renovated. The new refining facilities include: (1) a 3 million tons/year hydrocracking unit (including PSA), (2) a 1.2 million tons/year solvent deasphalting unit, (3) a POX hydrogen production unit with a capacity of 200,000 standard cubic meters per hour, (4) 2 × 80,000 tons/year sulfur recovery units, (5) an acidic water stripping unit with a capacity of 250 tons per hour, (6) a solvent regeneration unit with a capacity of 360 tons per hour, and (7) a 140,000/60,000 tons/year #1 MTBE/butene-1 unit ； The upgrades to the refining units include: (1) upgrading of the medium-pressure hydrocracking unit, (2) upgrading of the 1.8 million tons/year gasoline adsorption desulfurization (S-Zorb) unit, and (3) upgrading of the 730,000 tons/year gas fractionation unit. Eight old units, including the existing high-pressure hydrocracking unit, solvent deasphalting unit, #1 hydrogen production unit, #2 hydrogen production unit, #2 sulfur recovery unit, #1 acidic water stripping unit, #2 acidic water stripping unit, and #1 MTBE unit, will be shut down. Chemical plants: This project involves the construction of 10 new chemical plants and the renovation of 10 more, with 8 plants being built anew and 2 undergoing renovation. The new chemical plants include: (1) a 1.2 million tons/year ethylene plant, (2) a 200,000 tons/year butadiene extraction plant (including alkyne hydrogenation), (3) a 700,000 tons/year cracked gasoline hydrogenation plant, (4) a 400,000 tons/year aromatic extraction plant, (5) a 300,000 tons/year vinyl acetate plant, (6) a 400,000 tons/year polyethylene plant, (7) a 100,000 tons/year carbonate plant, and (8) a 200,000 tons/year No. 1 C5 separation plant. The upgraded chemical plants include: (1) the upgrade of the No. 2 C5 separation plant, and (2) the upgrade of the No. 2 ethylene glycol plant. Shut down the existing 2# ethylene unit along with 6 other older units, including the associated ultra-high pressure steam boilers, butadiene extraction unit, 2# pyrolysis gasoline hydrogenation unit, vinyl acetate unit, and 1# C5 separation unit ； A new wet oxidation unit for waste alkaline liquid was installed, while the existing wet oxidation unit for waste alkaline liquid was shut down ； Synchronously shut down 3 old units, including the existing No. 2 oxidation unit, No. 2 polyester unit, and No. 2 staple fiber unit ； A total of 10 outdated units were shut down. Project progress: On January 15, Sinopec Shanghai Petrochemical Co., Ltd. issued a announcement regarding the investment in a project for comprehensive technical transformation and quality improvement. In February, the Shanghai Ecology and Environment Bureau issued a public notice regarding the acceptance of the environmental impact assessment report for Shanghai Petrochemical’s comprehensive technical transformation and upgrading project. On February 24, the results of the bidding for the three sections of the overall design for this project were announced; Sinopec Shanghai Engineering Co., Ltd., Sinopec Ningbo Engineering Co., Ltd., and Sinopec Engineering Construction Co., Ltd. were assigned the task of carrying out the design work. On June 10, the comprehensive technical transformation and upgrading project at Shanghai Petrochemical was officially launched, with the main production facilities expected to be completed and put into operation by 2028. On the morning of September 9, the inauguration ceremony for the Project Management Department for the comprehensive technical transformation and quality improvement of Shanghai Petrochemical was held, marking a new phase of substantive progress for this strategic project.