Summary of the 6 Major New Ethylene Projects in 2020

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Summary of the 6 major new ethylene production projects in 2020: Fuhai Tangshan Petrochemical Co., Ltd.’s project for producing olefins from diverse feedstocks. On June 24, 2020, the People’s Government of Caofeidian District issued the “First Public Notice on the Environmental Impact Assessment for Fuhai Tangshan Petrochemical Co., Ltd.’s project for producing olefins from diverse feedstocks”. The diversified feedstock-based olefin production project of Fuhai Tangshan Petrochemical Co., Ltd. is located in the Caofeidian Petrochemical Industry Base in Tangshan City, Hebei Province. It involves the construction of an ethylene plant with an annual capacity of 1 million tons, as well as downstream chemical product manufacturing facilities, along with the corresponding utility and auxiliary systems. Fuhai Tangshan Petrochemical Co., Ltd. was established on June 13, 2019. Its registered address is Room H504-13, in the office building of the Chemical Industry Park Management Committee, Jindao Building, Caofeidian Industrial Zone, Tangshan City. Its business scope includes project preparation. On April 2, 2020, Sinopec Tahe Refining & Chemical Co., Ltd. released the first public information notice regarding the environmental impact assessment for its million-ton-scale ethylene production project based on steam cracking of Shunbei crude oil. The million-ton-scale ethylene production project for crude oil steam cracking at Suenbei, operated by Sinopec Tahe Refining & Chemical Co., Ltd., has its main processing facilities located in the Kuqa Economic and Technological Development Zone in Kuqa County, Xinjiang Uygur Autonomous Region, 8 kilometers east of Tahe Refining & Chemical’s existing plant site. Main construction contents and scale: 10 chemical production units will be built, with an ethylene production capacity of 1 million tons per year as the core; the other 9 units are a 450,000 tons per year HDPE plant, a 400,000 tons per year LLDPE plant, a 200,000 tons per year LDPE plant, a 200,000 tons per year 1#PP plant, a 300,000 tons per year 2#PP plant, a 140,000 tons per year butadiene extraction plant, a 100,000/40,000 tons per year MTBE/butene-1 plant, a 650,000 tons per year pyrolysis gasoline hydrogenation plant, and a 350,000 tons per year aromatic extraction plant. In addition, supporting utilities such as boilers, circulating water systems, air separation and air compressors, as well as power supply and distribution systems are also installed ； Storage and transportation facilities such as tank farms and loading/unloading stations ； Auxiliary production facilities such as warehouses and central laboratories ； Environmental protection facilities such as sewage treatment plants and hazardous waste storage areas, as well as the elevated pipeline systems for transporting materials between Tarim Refining & Chemical’s existing plant site and the proposed new site. Off-site projects include 220kV power supply projects and dedicated railway lines. On the morning of April 7, 2020, the People’s Government of Guangdong Province held a video conference with ExxonMobil to discuss and advance the construction of the ExxonMobil ethylene project in Huizhou. Ma Xingrui, Governor of Guangdong Province, and Woodlawn, Global Chairman and CEO of ExxonMobil, participated in the video conference. The ExxonMobil Huizhou ethylene project is implemented in two phases. Phase 1 involves the construction of units for crude oil steam cracking, polyethylene, polypropylene production, as well as related utility systems. Phase II: an ethylene plant with a capacity of 1.2 million tons per year, processes for producing polyethylene, polypropylene, butyl rubber, etc., as well as supporting utility systems, storage and packaging facilities, auxiliary production equipment, and systems engineering. The total investment for the project is 650,670 million yuan, with an investment plan of 136,000 million yuan for 2020; the funds will be used primarily for land reclamation work and the construction of foundations for heavy-load docks, as well as for building a comprehensive service office building. On the evening of March 28, 2020, the Changqing Ethane to Ethylene Project team held a meeting in the project site’s conference room to explain the general contract for the construction of this project. Project leaders, department heads, and supervisors of various specialties attended this meeting. A total of 5 contracts are involved in this briefing, containing a large amount of information. The Project Marketing Department provided explanations for the 5 contracts in terms of project overview, timeline requirements, scope of work, supply of materials and equipment, change orders and claims, construction and quality requirements, as well as HSE management requirements. It also summarized the identical clauses across these 5 contracts, thereby **improving the efficiency of the explanations. On March 24, 2020, at the 2,200-mu construction site of the Tarim Ethane to Ethylene project, welding work was underway on the foundation of Column 4 of the cracking furnace. It is reported that the Tarim ethane-to-ethylene project has resumed operations officially recently; the various participating units have arranged for their staff to return, organized equipment procurement and delivery, in order to accelerate the project’s construction. This year is the \"year of intensive process installation\" and the \"critical year for production preparation\" for the construction of the ethane-to-ethylene project, with heavy tasks and a tight schedule. The Tarim Oil Field is accelerating the deployment of personnel to return to work, speeding up the design review process, and keeping a close eye on the arrival of key materials, with the goal of completing the on-site construction of the underground structures and civil engineering foundations by May 15, thereby creating favorable conditions for the timely completion of the project. The Tarim ethane-to-ethylene project represents the first application of the \"local resources + independent technology\" approach in China’s ethylene industry. It serves as a model for promoting the high-value utilization of domestic natural gas resources and reducing reliance on foreign ethylene production technologies. It carries the important mission of becoming a leading, internationally competitive, green, intelligent, and efficient **model project** in China. Construction of the project began on June 19, 2019, with completion scheduled for 2021; by then, an industrial cluster led and driven by ethylene will be established in southern Xinjiang. On the morning of April 8, 2020, the dock construction project associated with Hainan Refining & Chemical’s 1 million tons per year ethylene production facility was launched in the Yangpu Economic Development Zone in Hainan. Once completed in 2022, this facility will help Yangpu to develop port-based industries on a larger scale and boost the volume of import and export trade. The project involves the construction of 4 berths in total: 1 berth for GTLPG with a capacity of 50,000 tons, 2 berths for liquid chemicals with a capacity of 20,000 tons each, and 1 berth for general cargo with a capacity of 30,000 tons. The length of these berths is sufficient to accommodate 2 5,000-ton general cargo ships simultaneously, as well as 1 20,000-ton roll-on roll-off ship carrying hazardous materials; they also serve the purpose of handling heavy cargo during the construction period. The total length of the port shoreline utilized is 1,215.9 meters, while the area occupied at sea is 100.63 hectares. At the same time, 1935.8 meters of breakwaters, 700 meters of access embankments, and 85.6 meters of roads connecting the land area to the factory area were constructed. The expected throughput is 5.0813 million tons per year, with a designed capacity of 5.602 million tons per year. Hainan Refining and Chemicals’ project to produce one million tons of ethylene per year is a key project in Hainan Province and Sinopec. With a total investment of 28.1 billion yuan, once completed and put into operation, it will drive downstream industries worth over 100 billion yuan, thereby significantly promoting the development of the entire industrial chain. Since resuming work on February 7, the foundation preparation was completed 20 days ahead of schedule; currently, pile testing and dynamic compaction tests are being carried out, with ground pipe and road construction set to begin in May.