[Haichuan Discussion] Resumption of Jieyang’s 20 million-ton petrochemical project appears imminent

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Resumption of Jieyang’s 20 million-ton petrochemical project expected Author: Hua Xin January 22, 2018 Source: China Chemical Industry News According to Sinochem News, a meeting on the progress of Guangdong Petrochemical’s 20 million tons per year petrochemical integration project was held recently in Jieyang, Guangdong. The meeting proposed to strive to complete the approval of the project by the Guangdong Provincial Development and Reform Commission by June 2018, and to finish the preliminary draft of the overall design by July; resuming work at the site’s pre-plant area in the first half of the year, with full resumption of operations pursued in a timely manner. Testing operations at the refining section was to begin in October 2021, while testing at the chemical processing section was to start in December 2021. 　　The meeting heard a report from Guangdong Petrochemical on the progress of building this project, reiterating the project’s key role in China National Petroleum Corporation’s strategy for transforming and upgrading its refining operations. Resolutions were adopted regarding the need to accurately define the project’s objectives, continuously improve the construction plan, and resume work as soon as possible. 　　At the meeting, leaders and relevant professionals from CNPC’s headquarters, specialized subsidiaries, general contractors, and other entities discussed matters such as project approval, environmental impact assessment, design, procurement, construction, and overall schedule with the relevant officials from Guangdong Petrochemical. They further clarified the overall goal of transforming this project into a \"green, intelligent, and efficient international integrated refining and petrochemical complex.\" Regarding the resumption of the project, the meeting called for the establishment of a scientific and efficient joint project management team to properly address the issues remaining from the previous phase, carry out all tasks in compliance with regulations, and strive for the project to be approved and started as soon as possible. 　　The project has faced many setbacks. In March 2007, CNPC and Venezuela’s PDVSA signed a strategic framework agreement to jointly establish an oil refining project in China. In March 2009, the People’s Government of Jieyang City, Guangdong Province, signed a cooperation agreement with China National Petroleum Corporation; the project was located in Huilei County, Jieyang, where a world-class refinery with an annual capacity of 50 million tons was planned to be built, with the first phase involving the construction of a refinery with an annual capacity of 20 million tons. In April 2012, the project commenced construction in the Dainanhai Petrochemical Industrial Zone in Jieyang. As planned, the project was set to go into operation by 2014, but subsequent turmoil in the international crude oil market and Venezuela’s economic crisis led to several delays in its construction. It was not until June 2017 that the eight-year-long negotiations for the joint venture were finally concluded. Under the agreement, CNPC and Venezuela’s PDVSA will jointly establish Sino-Venezuelan Guangdong Petrochemical Company. 　　According to CNPC’s latest plans, building on the development of the first-phase project, Guangdong Petrochemical will add a 2.4 million tons per year aromatic compounds production facility and a 1.2 million tons per year ethylene production facility as part of this phase, thereby turning the Jieyang Dainanhai Petrochemical Industrial Zone into CNPC’s headquarters base south of the Yangtze River, as well as a world-class petrochemical industry hub and a new benchmark for industry in Guangdong.