China’s “foreign-funded enterprise”: Hainan Petrochemical!

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To implement the strategic development plan of the group company’s Party leadership team, which calls for \"building strong defenses and solid foundations,\" the oil refining project in Hainan carried out by Hainan Shihua Oil Refining and Chemical Co., Ltd. was officially restarted in March 2003. The project is designed to have a crude oil processing capacity of 6 million tons per year, and it is being built entirely by Sinopec Group’s overseas investment company. From April to November 2003, the group company organized experts on multiple occasions to evaluate the overall process flow and construction plan for the plant. Taking into account Hainan’s unique geographical location and clean environment, an overall process flow for the plant was established based on the framework of \"atmospheric distillation – catalytic pretreatment of feedstock – heavy oil catalytic cracking\" (CDU-ARDS-RFCC). SEI served as the lead institution responsible for the overall design and coordination of the project, while the design of the port area was carried out by the Fourth Navigation Engineering Survey and Design Institute of the Ministry of Transport. To make full use of the advantage that the Hainan project is located relatively close to both crude oil markets and product markets, reduce the investment cost per unit of crude oil, and improve the return on investment for the entire project, so as to transform the Hainan refining and chemical expansion project into a modern refinery in the new century, SEI has re-optimized and adjusted the overall process flow and construction plan for the plant in accordance with the guidelines set by the group company. The optimized design capacity for crude oil processing across the entire plant can reach 8 million tons per year. The overall process flow retains its original basic structure, with the addition of vacuum distillation and hydrocracking units; thus, the overall processing sequence for the plant is “vacuum and atmospheric distillation – catalytic feed pretreatment – heavy oil catalytic cracking/hydrocracking” (CDU/VDU-RDS-RFCC/HC). Various parameters such as the composition of the units, their scale, the quality of gasoline and diesel products, the yields of gasoline, diesel, and kerosene, the gasoline-to-diesel ratio, the overall product yield, and the energy consumption of the plant have all seen significant improvements compared to the original plan. All plant units and supporting systems
Main plant units:
List of main plant units – Serial Number, Unit Name, Designing Company
1. 16 million tons/year Atmospheric and Vacuum Distillation Unit (CDU/VDU), SEI
2. 31 million tons/year Catalytic Feed Pre-treatment Unit (RDS), SEI
3. 28 million tons/year Heavy Oil Catalytic Cracking Unit (RFCC), SEI
4. Desulfurization and Demethanization Unit, SEI
5. 6 million tons/year Gas Fractionation Unit, SEI
6. 12 million tons/year Continuous Reforming Unit (CCR), SEI
7. 2 million tons/year Isomerization Unit, SEI
8. 1 million tons/year Methyl Tert-Butyl Ether Unit (MTBE), SEI
9. 12 million tons/year Hydrocracking Unit (HC), SEI
10. 20 million tons/year Diesel Hydrogenation Unit (DHF), LPEC
11. 3 million tons/year Jet Fuel Hydrogenation Unit (KHF), LPEC
12. 600,000 cubic meters/hour Hydrogen Production Unit, LPEC
13. 8 million tons/year Sulfur Recovery and Solvent Regeneration Unit, SEI
14. 180 tons/hour Acidic Water Stripping Unit, SEI
15. 20 million tons/year Polypropylene Unit (PP), SEI

2. Wharves and supporting systems
Wharves: 1 wharf for 300,000 tons of crude oil, 1 wharf for 100,000 tons of refined oil, 3 wharves for 5,000 tons each, along with the corresponding pipelines. 3. Oil storage and transportation: The plant has a total of 90 oil storage tanks, with a combined capacity of 140.8×104 cubic meters. Of these, there are 6 crude oil tanks with a capacity of 10×104 cubic meters each, and 2 crude oil tanks with a capacity of 5×104 cubic meters each. 4. The supporting utility systems include: (1) Water supply system: Yangpu Water Supply Co., Ltd. has the capacity to supply purified water to the Hainan Refining and Chemical Project at a rate of not less than 39,600 m3/day ； Circulating water system: The designed demand for circulating water in the refining section is 25,973 m3/h, with a designed capacity of 29,800 m3/h; the designed demand for circulating water in the chemical section is 8,100 m3/h, with a designed capacity of 10,000 m3/h (to serve the polypropylene and styrene plants). (2) Drainage system: The design capacity of the oil-containing wastewater treatment system is 450 m3/h ； The design capacity of the salt-containing wastewater treatment system is 200 m3/h ； The design capacity of the sludge dewatering facility is 12 m3/h ； The designed capacity of the sludge incineration facility is set at 1.0 m3/h ； Rainwater monitoring facilities: The maximum processing capacity of the rainwater oil separator is 700 m3/h, while the effective volume of the rainwater monitoring tank is approximately 23,000 m3. (3) Power supply: The entire plant is equipped with one 220/35 kV main substation, as well as three 35/6 kV transformer and distribution stations. The normal calculated power load for Phase 1 of the ongoing project is 104.9 MW, while the maximum calculated power load for Phase 1 is 135.54 MW (this maximum load applies for about one month of operation). The local area provides two independent 220kV power supplies. (4) Air supply: Design capacity: The designed capacity is 1100 Nm3/min. (5) Heating: 1 75t/h gas boiler and 2 130t/h oil-gas boilers are installed. The plant’s steam system is divided into 3 pressure levels: 3.50 MPa steam, 1.0 MPa steam, and 0.35 MPa steam. The design capacity of the water treatment plant is 750 t/h. The design capacity of the condensate water station is 240 t/h. 5. Automatic control: All devices utilize a distributed control system (abbreviated as DCS) for process control and monitoring, enabling centralized operation. They are also connected to the plant’s real-time database, which forms the basis for computer-based information management and production scheduling throughout the plant. It achieves centralized control, smooth operation, safe production, and unified management, thereby improving product output and quality, reducing energy consumption, fully utilizing the production capabilities of the processing equipment, and maximizing economic benefits. 6. Warehouse: Two warehouses are located in the plant-wide warehouse area, on the north side of the management area. Main storage: spare parts, backup equipment, supplies, and consumables, etc ； The total storage area is 2,650 square meters. 7. The total area occupied by the factory: the boundary of the land acquisition area is approximately 980 meters wide from north to south, with the northern boundary running east-west being about 3050 meters long, and the southern boundary being about 1900 meters long. Key Technical and Economic Indicators – Summary of Key Technical and Economic Parameters for the Entire Plant

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 1 | Main Products and By-products | | | |
| 1 | Liquefied gas | 10,000 tons/year | 48.28 | For export |
| 2 | Gasoline | 10,000 tons/year | 243.8 | For export; including: Euro III 97# – 10,000 tons/year (20.0 for export), Euro III 95# – 10,000 tons/year (80.0 for export), Euro III 93# – 10,000 tons/year (143.80 for export) |
| 3 | Kerosene | 10,000 tons/year | 20.0 | For export |
| 4 | Diesel | 10,000 tons/year | 385.99 | For export |
| 5 | Sulfur | 10,000 tons/year | 6.62 | For export |
| 6 | Polypropylene | 10,000 tons/year | 21.49 | For export |
| 7 | Fuel oil | 10,000 tons/year | 13.89 | For export |
| 8 | Benzene | 10,000 tons/year | 5.83 | For export |
| 9 | Ethylene | 10,000 tons/year | 2.20 | Utilized from catalytic dry gas |
| 10 | MTBE (for external use) | 10,000 tons/year | 8.522 | For export |
| 11 | Dry gas | 10,000 tons/year | 21.59 | Used as fuel gas |
| 12 | Waste polymers | 10,000 tons/year | 0.54 | Waste polypropylene is exported |

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 2 | Main Raw Materials and Auxiliary Materials | | | |
| 1 | Crude oil | | | Including: imported sulfur-containing crude oil – 10,000 tons/year, transported by ship; Wenchang crude oil – 10,000 tons/year, transported by ship |
| 2 | Methanol | 10,000 tons/year | 3.64 | Used as a raw material for MTBE production |
| 3 | Natural gas | 10,000 tons/year | 10.6 | Used as a raw material for hydrogen production |

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 3 | Fuels | | | |
| 1 | Desulfurized dry gas, etc. | 10,000 tons/year | 20.6 | Used as fuel gas |
| 2 | Natural gas | 10,000 tons/year | 18.904 | Used as fuel gas |

Continuing from the table above:

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 4 | Consumption of Power and Utility Materials | | | |
| 1 | Fresh water | t/ht/h | 1231900 | Includes water used at the dock and for polypropylene production; does not include water used at the dock or for polypropylene production |
| 2 | Electricity | MW | 104.9 | Purchased externally |
| 3 | Steam | 3.5MPa, 1.0MPa, 0.35MPa | t/ht/ht/h | 38327151.1 | Produced internally |
| 4 | Recirculated cooling water | t/h | 25973 + 8100 | For refining and chemical processes |
| 5 | Desalinated water | t/h | 750 |
| 6 | Purified air | Nm3/min | 260 |
| 7 | Unpurified air | Nm3/min | 425 |
| 8 | Nitrogen | Nm3/h | 5000–7620 |

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 5 | Total Land Area Required for the Project | Hectares | 116.3 | Includes 12.5 hectares reserved for future use |
| 1 | Land area occupied by the plant | Hectares | 103.8 | Does not include 12.5 hectares reserved for future use |
| 2 | Land area required per 10,000 tons of crude oil | Hectares/10,000 tons | 0.146 | Does not include 12.5 hectares reserved for future use |
| 3 | Land area required for projects outside the plant | Hectares | 10.0 | Includes land required for flares |

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 6 | Amount of wastewater sent to the treatment plant | | | |
| | Amount of treated wastewater discharged | t/ht/h | 508164 | Does not include ballast water |

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 7 | Total workforce | People | 500 |

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 8 | Total energy consumption of the plant | kg of standard oil per 10,000 tons of crude oil | 84.8 | Does not include energy consumption related to the dock, polypropylene, ethylbenzene/styrene production processes |

| Serial No. | Name of Item (Parameter) | Unit | Quantity | Remarks |
| --- | --- | --- | --- | --- |
| 9 | Total investment required for construction | Hundred million yuan | 113 | |