Lianyungang Satellite Chemical plans to build an industrial pilot plant with an annual production capacity of 1,000 tons of α-olefins

Project necessity analysis: Copolymer monomers represent one of the most important uses for α-olefins, accounting for over 40% of the total consumption of α-olefins. As comonomers, α-olefins are primarily used in the industrial production of polyolefins. The copolymerization of 1-butene, 1-hexene, 1-octene with ethylene can yield high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and polyolefin elastomers (POE). 1-Butene can also be copolymerized with ethylene and propylene to produce propylene/ethylene/butylene terpolypropylene, or copolymerized with propylene to yield butene-copolymerized propylene. α-olefins can be used as comonomers to produce polyethylene products with higher monomer content and superior properties, yet the slow pace of their domestic production has become a bottleneck in the development of new polyethylene grades in China. For many years, foreign companies have only sold products rather than technology, thereby maintaining a long-term monopoly over the markets for 1-hexene and 1-octene. The high import prices have restricted the development and industrial production of new polyethylene grades in our country, as well as hindered the upgrading of polyethylene products and the improvement of economic efficiency. In terms of 1-hexene in China: Currently, both CNPC’s Daqing Petrochemical and Dushanbe Petrochemical have large-scale production facilities for 1-hexene. However, due to the late start of its production, the capacity for 1-hexene production is currently only 80,000 tons per year. Regarding 1-octene in China: Wax cracking does not yield high-purity 1-octene suitable as a copolymerizing monomer, and the production technologies involving the copolymerization of butadiene followed by methyl octyl ether cracking, as well as the oligomerization of ethylene to produce 1-octene, are still in the research and development stage. As a result, large-scale production of high-purity 1-octene products remains unavailable in China at present, and imports are necessary to meet this demand. Through years of research and development efforts by introducing high-tech talents, the Satellite Chemical Research Institute has developed catalysts suitable for the production of α-olefins. Experiments have shown that these catalysts enable the high-selective production of 1-hexene and 1-octene via the ethylene oligomerization method, with high conversion rates. Once mass production is underway, it may be possible to break through foreign technological blockades and monopolies, thereby meeting the market demand for α-olefins.

Lianyungang Petrochemical – a subsidiary of Saturn Chemicals – on August 27 held a ceremony to mark the commissioning of an olefin comprehensive utilization project at the Xuwei New Area in Lianyungang. This project is designed to produce 1.35 million tons of PE, 2.19 million tons of EOE, and 260,000 tons of ACN per year, with a total investment of 33.5 billion yuan. Lianyungang Petrochemical Co., Ltd. is a wholly-owned subsidiary of Satellite Chemical Co., Ltd., and was established in November 2017 at the Lianyungang Petrochemical Industry Base in Jiangsu Province (Xuwei New Area Petrochemical Industrial Park). Satellite Chemical Co., Ltd. is a large-scale high-tech petrochemical enterprise that integrates R&D, production, sales, and port logistics. It is the first listed company in China with a market value of over 10 billion yuan to possess a complete C3 industrial chain. Satellite Chemical has production capacities of 900,000 tons per year for propylene production via propane dehydrogenation, 1.2 million tons per year for acrylic acid and esters, 300,000 tons per year for polypropylene, 210,000 tons per year for polymer emulsions, 150,000 tons per year for superabsorbent resins (of which 60,000 tons are under construction), and 21,000 tons per year for organic pigment intermediates. It is the largest acrylic acid producer in China and among the top five in the world, the largest producer of acrylate-based textile chemicals in China, as well as the largest manufacturer of pigment intermediates and a key supplier of raw materials for their synthesis.