【Haichuan Project Updates】Lianyungang Petrochemical’s 1.35 million tons/year polyethylene plant has started operations
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On May 27, the construction of the integrated plant at Lianyungang Petrochemical Co., Ltd., which is being built by China National Chemical Engineering Sixth Construction Company, began officially. This plant is capable of producing 1.35 million tons of PE, 2.19 million tons of EOE, and 260,000 tons of ACN per year. The project is located in the Petrochemical Industry Park of Xuwei New Area, Lianyungang City, Jiangsu Province, with a total investment of 33.5 billion yuan. Once completed and put into operation, the project will produce 1.35 million tons per year of polyethylene, 2.19 million tons per year of ethylene oxide and ethylene glycol, as well as 260,000 tons per year of acrylonitrile. This will help establish a new world-class petrochemical industry hub in the Lianyungang area, creating an additional growth point for coastal development. Liuhua Jian is responsible for the installation work of combined units, including professional construction in areas such as equipment, steel structures, pipelines, electrical systems, instrumentation, anti-corrosion and insulation (cold), HVAC, and static grounding.
According to the public information, the specific construction contents of the project include a combined facility capable of producing 1.35 million tons per year of PE, 2.19 million tons per year of EOE, and 260,000 tons per year of ACN, along with associated utility facilities. The project is implemented in phases: In Phase 1, one set of high-density polyethylene (HDPE) production facility with an annual capacity of 400,000 tons and two sets of ethylene oxide (EO)/ethylene glycol (EG) production facilities with annual capacities of 720,000/910,000 tons will be built; simultaneously, a raw material processing facility with an annual capacity of 1.25 million tons, as well as storage facilities and other utility systems, will be established ； In the second phase, one 400,000 tons/year high-density polyethylene (HDPE) plant, one 550,000 tons/year linear low-density polyethylene (LLDPE) plant, and one 720,000/910,000 tons/year ethylene oxide (EO)/ethylene glycol (EG) plant, along with a 260,000/86,000 tons/year acrylonitrile (ACN) complex, will be constructed. Meanwhile, a 1.25 million tons/year raw material processing plant (including one 60,000 tons/year butadiene extraction plant), as well as storage facilities and other utility systems, will be built simultaneously.
"An annual production capacity of 1.35 million tons of PE and 2.19 million tons of EOEG”...:o; Lianyungang Petrochemical is set to drop a heavy bomb in the markets for chemical polyolefins and polyester raw materials.
How much ethylene support is needed for this? Why is only polyethylene included and not polypropylene?
It is estimated that ethane and propane raw materials from the United States are primarily purchased through long-term contracts; ethane is cracked to produce ethylene for the manufacture of polyethylene, while propane is dehydrogenated to produce propylene for the production of ethylene oxide/ethylene glycol. The problem is that all raw materials rely on a single market, which poses too great a risk to the companies. Due to this round of price war in the crude oil market plus the economic crisis triggered by the COVID-19 pandemic, how many oil companies that produce shale gas and condensate have gone bankrupt in the United States?
Are Lianyungang Petrochemical and Shenghong Refining the same company?
Does this figure of over one million tons refer to a single unit?
It’s not one company; Lianyungang Petrochemical belongs to Zhejiang Satellite Group.
Construction in phases, with 400,000 tons of PP in the first phase. Phase 2 still depends on the market.
Once these two large petrochemical plants in Lianyungang are completed, the region’s economic strength will increase significantly
There is still a lack of the ability to radiate and expand outward; mainly, Lianyungang has limited vision, a shortage of talent, and a limited market capacity, so the prospects for the development of this industrial park are not very promising.