Review: Latest Progress on Domestic Ten-Million-Ton-Class Refining and Chemical Projects (Updated Version)

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What are the latest developments in projects of domestic refining and chemical companies? How is the project progressing? Come and take a look with us! A chemical industry powerhouse is investing 500 billion yuan in the development of high-end chemical projects. Although it’s deep winter at present, construction work in the Dongying Port Economic Development Zone is in full swing. A number of high-end chemical projects, including Weilian Chemical’s 2 million tons per year p-xylene project, are under accelerated construction, with completion expected by mid-2020. With this as a driving force and platform, the Dongying Port Economic Development Zone will push forward with petrochemical integration projects on a scale of tens of millions of tons, and accelerate the construction of major projects such as PTA and PET, thereby laying the foundation for the development of a petrochemical industry cluster worth hundreds of billions. Relying on the 85 chemical parks re-recognized by the province, Shandong Province has selected 83 high-end chemical projects with a total investment of over 500 billion yuan, focusing mainly on areas such as advanced petrochemical processing, rubber materials, pesticides, dyes, fine chemicals, and pharmaceutical chemicals. On the eve of New Year’s Day, Shandong Province announced the list of the second batch of key chemical monitoring sites, totaling 65 sites; together with the 60 sites from the first batch, this brings the total to 125 sites. This means that after 2 years, these companies can undertake new or expanded chemical projects at their production facilities located at the addresses already announced. “From the perspective of project scheduling, factors such as land, funding, energy consumption limits, and environmental capacity remain the main constraints to the implementation of projects. To overcome these limitations, it is necessary to establish a mechanism in which these resources are allocated alongside the projects; by making use of existing land and coal resources more effectively and making good use of the additional land quotas available, high-quality resources can be directed toward high-quality projects. ”A responsible official from the Shandong Provincial Development and Reform Commission said that every effort should be made to address the issues of difficulties and delays in bringing projects to fruition, so as to effectively overcome the \"last mile\" challenge in implementing these projects. To this end, the Shandong Provincial Development and Reform Commission issued a notice recently to seek opinions on the \"Measures for Ensuring Energy and Land Resources for the Construction of Major Projects\" and the \"Measures for the Collection and Management of Provincial Energy Consumption Quotas\", with the aim of promoting the implementation of such large-scale projects through more efficient measures. The economic work conference of the Shandong Provincial Party Committee held recently also stated that in 2020, efforts should be made to advance the construction of high-quality projects and to increase effective investment. Major projects should be used as a means to develop a modern industrial system; by leveraging these major projects, other projects can be promoted as well, thereby forming various industrial clusters. Zhejiang Petrochemical – The country’s first 1.4 million tons per year ethylene plant was successfully commissioned. On the eve of New Year’s Day, the 1.4 million tons per year ethylene plant part of Zhejiang Petrochemical’s Phase I project, designed by Beijing Global Company, began producing high-quality ethylene products, and the plant operated smoothly, marking a successful commissioning of the project from the first attempt! Zhejiang Petrochemical’s 1.4 million-ton ethylene plant is currently the largest of its kind in China in terms of dual-olefin production capacity (2.1 million tons of ethylene plus propylene). Its successful commissioning marks another advancement in China’s ability to build world-class, ultra-large-scale ethylene plants, and it also lays a solid foundation for Huanqiu Company to continue undertaking large-scale ethylene project construction. The 140-year/ethylene unit of Zhejiang Petrochemical’s Phase I project uses raw materials such as butane, rich n-alkanes C5, aromatic extract oil, hydrogenation tail oil, hydrogenated coker naphtha, FCC catalytic dry gas, and hydrocracking tail oil. It employs Technip’s pre-propane removal and pre-hydrogenation technology, with the main products being polymer-grade ethylene and polymer-grade propylene ； The main by-products include hydrogen, pyrolyzed C4, crude pyrolyzed gasoline, and pyrolyzed fuel oil. From the signing of the process package contract in 2016 to the successful production of qualified products at 1:38 a.m. on December 31, 2019, when carbon dioxide hydrogenation was completed successfully, the Beijing Global project team remained true to its original aspirations and mission. Overcoming challenges such as the large scale of the facility, high engineering complexity, intricate process flows, tight project deadlines, short design periods, and long lead times for equipment procurement information, the team made full use of its engineering expertise. Adhering to the service philosophy that \"the success of the client’s project is Global’s goal,\" it continuously optimized and adjusted the process flows throughout the project execution phase. By drawing on the design experience gained from previous ethylene projects, it avoided the problems that had occurred in those projects. When issues arose, the team took proactive action, with members working together closely to complete the engineering design on time and to high quality, thereby earning recognition and praise from the client’s team. As the key unit in the refining and chemical integration project, the ethylene plant is the most challenging to bring into operation successfully. It lays a solid foundation for the subsequent commissioning of other units, providing a strong guarantee for the full operational capacity of Zhejiang Petrochemical’s refining and chemical integration project. At the same time, the successful commissioning of Zhejiang Petrochemical’s 1.4 million tons per year ethylene plant has provided Huanqiu Company with engineering experience in building large-scale ethylene facilities, contributing to the development of China’s ethylene industry. Fujian Gulei – New batch of petrochemical projects signed and commenced construction On January 2, the Fujian Gulei Development Zone held a ceremony to mark the signing and start of construction of these projects. A total of 6 petrochemical industry projects were signed in a centralized manner, and 7 projects commenced construction, with a total investment of 24.5 billion yuan. 6 projects have been signed: the Fuhai Chuang Raw Material Adaptation Technical Upgrade Project with a total investment of 7 billion yuan; the downstream new materials project of Fujian Petrochemical Group with an investment of 4 billion yuan; the Taiwan Hetong C4 Comprehensive Utilization Project with an investment of 1.3 billion yuan; the Henan Puyang HuiCheng Succinic Anhydride Derivatives Project with an investment of 1 billion yuan; the Xiamen Jintong 180,000-ton/year surfactant project with an investment of 600 million yuan; and the Huawei Adhesive Materials New Manufacturing Base Construction Project with an investment of 400 million yuan. As for the 7 projects that have already started construction, they include the Fujian ShengTong Energy Technology Co., Ltd. C4 Comprehensive Utilization Project with a total investment of around 1.3 billion yuan; the Zhangzhou Qimei Chemical Co., Ltd. 150,000-ton/year PC and 25,000-ton/year PETG project with a total investment of 2.76 billion yuan; the downstream new materials project of Fujian Petrochemical Group with an investment of around 4 billion yuan; the Puyang HuiCheng Electronic Materials Co., Ltd. (Gulei Base) project with an investment of 1 billion yuan; the Fujian Ruisheng Plastic Co., Ltd. 30,000-ton/year FFS bag blowing film project with an investment of 285 million yuan; the Leizhi Chemistry (Fujian) Co., Ltd. 100,000-ton/year alkoxylated derivatives project with an investment of 610 million yuan; and the Fengpeng Environmental Protection 25,000-ton/year waste catalyst comprehensive utilization project. The Sinochem Refining & Chemicals Integrated Project was completed on December 28 – it represents a landmark refining and chemical engineering project in China’s new era. Phase I of the project involves an investment of over 40 billion yuan, aimed at building a refinery with an annual processing capacity of 10 million tons, ethylene production facilities with an annual capacity of 800,000 tons, as well as various auxiliary facilities and infrastructure. It is a model project under the first three-year phase of Sinopec’s \"two three-year plans\" and \"two ten-year plans\" strategic framework. Feel free to share! Source: Petrochemical Observation