Hengli Petrochemical’s integrated refining and chemical production project has commenced construction on Dalian Changxing Island, with an investment of 74 billion planned

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On December 9, the Hengli Petrochemical’s integrated project with an investment of 74 billion yuan to produce 20 million tons of products began construction in the Changxing Island Economic Zone in Dalian. Hengli Petrochemical thus became the first private enterprise in China to enter the field of oil refining and chemical processing. The commencement of the project marks the entry of the construction of a world-class petrochemical industry base in Dalian Changxing Island Economic Zone into a substantive phase. Officials in Liaoning Province said that this project will play an important role in revitalizing Liaoning’s old industrial base. The integrated refining and chemical processing project of Hengli Petrochemical (Dalian) Co., Ltd. is located within the Dalian Changxing Island Petrochemical Industry Base, right next to Hengli’s PTA project. It adopts the world’s most advanced residue fluidized bed technology, featuring high residue conversion rates and low energy consumption. Planned and constructed with high standards, rigorous requirements, and a high starting point; the design was entrusted to the world-renowned American companies UOP and CLG. Advanced process package technologies from international firms such as Chevron, Lummus, BP, and Axens were utilized, along with the environmentally friendly wastewater treatment technology provided by the world-leading French company Degremont. The Hengli Petrochemical integration project is planned to require an investment of 74 billion yuan. The construction scope includes: a 4.5 million tons per year aromatic compounds complex as the core, along with 20 million tons per year of oil refining and chemical processing facilities, utility systems and auxiliary production facilities, as well as port infrastructure. The construction is planned to take 2.5 years, and once the project is operational, it will be able to generate an annual output value of 230 billion yuan, with nearly 6,000 employees, thereby bringing the integrated refining and processing capabilities of China’s petrochemical industry to world-class levels. Dalian Mayor Xiao Shengfeng said that Dalian’s current oil refining capacity is 30 million tons, and it will reach 50 million tons by 2020. Hengli Petrochemical’s 20-million-ton integrated refining and chemical project is of great significance for Dalian in optimizing its industrial structure and strengthening its development momentum. The PTA project of Hengli Petrochemical (Dalian Changxing Island) Industrial Park, which went into full operation at the beginning of 2015, is located in the Dalian Changxing Island Economic Zone, adjacent to the Bohai Rim economic circle. It was initially planned to cover an area of 10 square kilometers and is to be built in two phases, with a total investment of 34 billion yuan. The project utilizes the internationally advanced Invada technology from the United States, and features characteristics such as a large investment scale, strong production capacity, high technological standards, and low energy consumption. At present, the Hengli Petrochemical (Dalian Changxing Island) Industrial Park has three PTA production lines with an annual output of 6.6 million tons, making it the largest PTA production base in the world. Its annual sales revenue reaches 60 billion yuan. To improve the petrochemical industry chain and enhance corporate competitiveness, enabling companies to develop across the entire upstream and downstream value chain, Hengli Petrochemical (Dalian Changxing Island) Industrial Park continues to move toward the highest end of this industry chain by establishing integrated refining and chemical processing projects. On August 8, 2014, the guidelines issued by the State Council in the document titled \"Opinions of the State Council on Several Key Policy Measures to Support the Revitalization of the Northeast in the Near Future\" stated that: \"Local authorities and enterprises should carry out the preliminary work for the Hengli refining and chemical integration project and strive to start its construction as soon as possible.\" ”With the strong support of Liaoning Province, Dalian City ** and relevant departments, the Hengli Petrochemical integration project is advancing rapidly. The required documents, such as the project’s social stability risk analysis report and energy conservation assessment report, have all received approval from the competent authorities. On August 5, 2015, the Liaoning Provincial Environmental Protection Department approved the environmental impact assessment report for the Hengli Petrochemical integration project, and on September 9, 2015, the Liaoning Provincial Development and Reform Commission gave its approval to this project. Hengli Petrochemical became the first private enterprise in China to enter the oil refining and processing sector, and the scale of this project will also mark the first breakthrough in the field of oil refining.