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The preliminary design for 8 units, including residue hydrogenation and aromatic extraction units, as well as the associated systems, under the Luoyang Petrochemical Refining Structure Adjustment Project, has been approved by Sinopec Group, marking the approval of all aspects of this project by the headquarters. The limited range of heavy oil processing methods and the low proportion of high-value-added products have always been weaknesses that Luoyang Petrochemical strives to overcome. The refinery restructuring project has added secondary refining units such as residue hydrogenation and continuous reforming. The production capacity for aviation kerosene is also set to increase from the current 800,000 tons per year to 1.8 million tons per year. In addition, a Zhengzhou-Luoyang aviation kerosene pipeline project has been planned, enabling high-value aviation kerosene products to be transported to Xinzheng Airport efficiently and at low cost, thereby facilitating the upgrade of the company’s product portfolio. According to the construction plan, this project and its associated facilities will be fully completed and put into operation by June 2020. By then, Luoyang Petrochemical’s refining capacity will reach 10 million tons per year, with both gasoline and diesel meeting the National VI standards. It is understood that the project is located in Jili District, Luoyang City, with a total investment of 4.5 billion yuan. Building on Luoyang Petrochemical’s existing 8 million tons per year refining capacity, it will adopt a \"residue hydrogenation + hydrocracking\" process route; through the construction of new facilities and the renovation of some existing ones, an processing capacity of 10 million tons per year will be achieved. The supporting projects for this initiative are progressing smoothly: the Rizhao-Puyang-Luoyang crude oil pipeline project, with a total investment of 4.94 billion yuan, completed its foundation design review on December 26, 2017, and construction began in May 2018; to date, 153 kilometers of pipeline have been laid ; The civil infrastructure part of the alkylation project is ready for delivery. The dynamic compaction of the foundation for storage tanks with a capacity of 12,000 tons at the Luoyang crude oil commercial reserve depot, whose total investment amounts to 890 million yuan, is nearing completion. The route plan for the Zhengzhou-Luoyang coal pipeline project is currently under evaluation, with construction expected to begin by the end of this year ; The Luoyang-Xiaoyi refined oil pipeline project is also being advanced actively.
Residue hydrogenation and continuous reforming and related units
I think so; you can search for it online
All are rapidly increasing their production capacity; the reliance on imported crude oil exceeds 70%, and the capacity to handle environmental impacts is also nearly at its limit. Is there an overinvestment situation?
That’s for sure; there are competitive factors at play, and it could also be due to strategic considerations