【Haichuan Chemical Salary Updates】Another large-scale petrochemical project added in Xinjiang; Sinopec’s Tahe plant with a production capacity of 10,000 tons of ethylene has begun to be made public

I. Basic Information on the Construction Project Project Name: Suenbei Crude Oil Steam Cracking Project for Producing Millions of Tons of Ethylene, China Petrochemical Tahe Refining & Chemical Co., Ltd. Location of Construction: The main facilities will be built in the Kuqa Economic and Technological Development Zone, Kuqa County, Xinjiang Uygur Autonomous Region, 8 kilometers east of the current site of Tahe Refining & Chemical. Project nature: New construction. Main construction contents and scale: 10 chemical processing units will be built, with an ethylene production capacity of 1 million tons per year as the core; the other 9 units include an HDPE plant with a capacity of 450,000 tons per year, an LLDPE plant with a capacity of 400,000 tons per year, an LDPE plant with a capacity of 200,000 tons per year, a No. 1 PP plant with a capacity of 200,000 tons per year, a No. 2 PP plant with a capacity of 300,000 tons per year, a butadiene extraction plant with a capacity of 140,000 tons per year, an MTBE/butene-1 plant with capacities of 100,000/40,000 tons per year respectively, a pyrolysis gasoline hydrogenation plant with a capacity of 650,000 tons per year, and an aromatic extraction plant with a capacity of 350,000 tons per year. 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 constructed ； 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 temporary storage areas, as well as the elevated pipeline corridors for transporting materials between Tarim Refining & Chemical’s existing plant site and the proposed new site. Off-site projects include the 220kV power supply project and the dedicated railway line.

The 520,000-ton-per-year xylene separation facility was completed at Tahe Refining and Chemical Co., Ltd., contributing to the development of Xinjiang’s cotton textile industry. CGTN, May 30, 2019, 15:11:13. According to CGTN reports from Kuche on May 30 (reporters Wu Zhuosheng, Hao Junfeng, and Cai Wenjun), the 520,000-ton-per-year xylene separation facility was completed today at Tahe Refining and Chemical Co., Ltd. Xylene, an important chemical raw material for the cotton textile industry, must be separated and extracted from oil; the operation of this facility will provide essential chemical raw materials for the cotton textile industry in southern Xinjiang. The total investment in the xylene separation unit at Tahe Refining & Chemical Plant is 87.63 million yuan, with a construction period of one year. In the past, the Tahe Refining and Chemical Plant’s main operations involved refining oil products such as gasoline, diesel, and aviation kerosene from the heavy crude oil produced in the Tahe oil field. The xylene-based chemical project that has now been launched represents an important step in the company’s efforts to make full use of this heavy crude oil and transition toward a chemical manufacturing focus. Jiang Zhiguo, deputy manager of the project department at Tahe Refining & Chemical Co., Ltd., explained: “It mainly uses reformed crude oil as raw material to produce mixed xylene.” Mixed xylene is used as a primary raw material for future chemical product manufacturing facilities, mainly for the production of fiber products. ” Tahe Refining and Chemical has 17 oil refining units in operation, with an annual crude oil processing capacity of 5 million tons, and a capacity for mixed hydrocracking of gasoline and diesel of 2.4 million tons. The xylene chemical project that has been completed and put into operation this time also marks a new starting point for the enterprise’s transformation and upgrading, as well as for extending its industrial chain and producing downstream products. At the same time, the establishment of multiple cotton textile clusters in Xinjiang has led to a growing demand for xylene-based chemical products. Cao Jie, deputy chief engineer of Tahe Refining and Chemical Co., Ltd., said, “This project represents a new source of growth for our company’s profitability. Once it comes online, the production of new chemical products will provide essential materials for the cotton textile industry in the Aksu region, thereby contributing to the local economic development.” ”

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Sinopec Tahe already has two large-scale petrochemical projects: the Kucheng Wheel Platform and the Korla Petrochemical Industry Zone

Sinopec Tahe already has two large-scale petrochemical projects: the Kucheng Wheel Platform and the Korla Petrochemical Industry Zone

Xinjiang boasts abundant oil and gas resources, Sinopec holds independent intellectual property rights for million-ton-scale ethylene production technologies, and Chinese refineries are at a crucial stage in transitioning from \"refining-oriented\" plants to \"chemicals-oriented\" plants.

Xinjiang will achieve an ethylene production capacity of 3 million tons per year; in the future, there may be even more large-scale ethylene projects developed there. ? CNPC Dushanzi Petrochemical has achieved an annual production capacity of 1.4 million tons of ethylene, 1.1 million tons of polyethylene, and 690,000 tons of polypropylene ； ? CNPC’s Tarim project is constructing a plant for 600,000 tons per year of ethylene and 600,000 tons per year of polyethylene ； Sinopec Tahe Refining and Chemical Plant’s environmental impact assessment outlines plans for producing 1 million tons per year of ethylene, 1.05 million tons per year of polyethylene, and 500,000 tons per year of polypropylene.

The polyolefins produced at a capacity of 3 million tons per year from ethylene lack downstream markets to absorb them; the market capacity in Kazakhstan and Central Asia is limited. At present, the products manufactured in Dushanbe are mainly sold in the Xi’an market, and the high transportation costs per ton reduce the competitiveness of these products.

This is a question of whether some policy incentives are needed, such as tax benefits