Hunan Kaimite purchases hydrogen produced by the petroleum coke hydrogenation department of Guangdong Petrochemical

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On February 25, Hunan Kaimite Gas Co., Ltd. issued a announcement stating that it had recently received the \"Framework Agreement on the Supply and Purchase (Cooperation) of Hydrogen Products\" signed with China National Petroleum Corporation’s Guangdong Petrochemical Branch and China National Petroleum Corporation’s South China Chemical Sales Branch. In accordance with the terms of the framework agreement, Guangdong Petrochemical guarantees an overall hydrogen balance within the plant, and intends to sell some of the hydrogen produced by its petroleum coke hydrogenation unit to the company on a paid basis, through South China Chemicals for external supply. Kaimet is willing to accept hydrogen from Guangdong petrochemical products. Adhering to the principles of mutual cooperation and mutual benefit, as well as active support, and while ensuring the stable operation of the Guangdong Petrochemical facilities, Guangdong Petrochemical supplies hydrogen as a raw material to Kemite in accordance with the agreed quality and quantity standards. The main contents of the agreement are as follows: (I) Basic information on the project: Party A is \"Guangdong Petrochemical\", located in the Dainanhai Petrochemical Industrial Zone in Jieyang, Guangdong Province. Its refining facility with a capacity of 20 million tons per year, aromatic compounds production facility with a capacity of 2.6 million tons per year, and ethylene production facility with a capacity of 1.2 million tons per year are scheduled to be completed and put into operation by the end of 2022. Party B: “South China Chemical Sales”, with its headquarters located in Guangzhou. Responsible for the marketing of Chinese petrochemical products in the four provinces/regions of Guangdong, Fujian, Guangxi, and Hainan. It mainly deals in five major categories of petrochemical products: synthetic resins, synthetic rubbers, raw materials for synthetic fibers, organic chemical products, and inorganic chemical products. Party C: “Kaimite”, headquartered in Yueyang, Hunan, specializes in the recovery of waste gases and exhaust fumes from the petrochemical industry. A new hydrogen peroxide production facility with an annual capacity of 300,000 tons is planned to be built in the Dainanhai Petrochemical Industrial Zone in Jieyang, and hydrogen derived from petrochemical products in Guangdong is required as raw material. Guangdong Petrochemical’s 20 million tons per year integrated refining and chemical processing project was fully completed and put into operation by the end of 2022. While ensuring hydrogen balance across the entire plant, Guangdong Petrochemical plans to sell some of the hydrogen produced by its petroleum coke hydrogenation unit to Kemite on a paid basis, through South China Chemicals for external supply. Kaimet is willing to accept Party A’s product, hydrogen. Guided by the principles of mutual cooperation and mutual benefit, as well as active support, and on the condition that Party A’s facilities operate smoothly, Guangdong Petrochemical supplies hydrogen as a raw material to Party C in accordance with the agreed quality and quantity standards. Through friendly consultations among the three parties, an agreement was reached, and this framework agreement is hereby signed for mutual compliance by all parties, to serve as a basis for further cooperation among them. (II) Project cooperation model: 1. Guangdong Petrochemical intends to sell the hydrogen produced by its integrated refining and chemical processing project on a paid basis through South China Chemical Sales Company, to be used for treatment by Kemite. 2. Kemite is financing the construction of a 300,000-ton/year hydrogen peroxide production facility on its own, with a hydrogen demand of around 6,000 tons per year.