Shandong’s local refineries are shifting from oil refining to chemical production: Xintai Petrochemical’s PDH unit was brought online successfully in one attempt
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On May 30, Shandong Xintai Petrochemical’s 300,000 tons per year propane dehydrogenation unit was commissioned successfully in one go, producing qualified propylene. As a traditional local refinery in Shandong, the commissioning of this facility marks the company’s official transition from \"oil refining\" to \"chemical manufacturing\". The 300,000 tons per year propane dehydrogenation plant is one of the projects included in Xintai Petrochemical’s fifth-phase development plan. With a total investment of 1.596 billion yuan, construction of this plant began in full force on December 28, 2019, and it was completed by the end of 2021. Once the facility is put into operation, it is expected to generate additional sales revenue of 2.5 billion yuan, tax revenues of 185 million yuan, and create 72 new jobs for the society.
Xintai Petrochemical’s 300,000 tons per year propane dehydrogenation project is the first initiative undertaken by the company to expand into the C3 industrial chain. This project utilizes Catofin technology from the American company Ruums, and it boasts advantages such as fewer unplanned shutdowns, lower operating costs, reduced energy consumption per unit of product, and advanced process technology. It serves as a raw material supply for subsequent projects, including the sixth-phase alkane comprehensive utilization project and the seventh-phase green and low-carbon olefin integration project.
The commissioning and successful operation of the units mark the fact that all 4 chemical processing units of the Phase 5 project, with a total investment of 4.5 billion yuan, have been brought online successfully in just one attempt. By then, the proportion of chemical products such as Xintai Petrochemical’s specialty oils, aromatics, and propylene could rise to 84.3%. According to the assessment of the effectiveness of the integration of refining and chemical manufacturing issued by the China Petroleum and Chemical Industry Federation on July 19, 2021, the commissioning and operation of the four units in Phase 5 indicate that Xintai Petrochemical has, through a differentiated approach to transformation, managed to shift from a fuel-based enterprise to one focused on chemical raw materials and specialty oils. By doing so, it has moved away from the traditional path of conventional refining industries and achieved integration of refining and chemical manufacturing, which is in line with the trend of advanced development in China’s chemical industry.
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A 300,000-ton propylene plant yields limited profits.