Zhejiang Petrochemical’s 40-million-ton refining project may rewrite the eastern petrochemical landscape

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Zhejiang Petrochemical's 40-million-ton refining and chemical project may rewrite the eastern petrochemical map. Zhejiang Petrochemical's 40-million-ton refining and chemical project may rewrite the eastern petrochemical map. The main investors of this giant project located in the Zhoushan Green Petrochemical Base of Dayushan, Daishan, Zhejiang are the Zhejiang chemical private enterprise giants, namely Rongsheng Petrochemical, Tongkun Petrochemical and Juhua Group. The main idea is to extend upstream to supply low-cost raw materials for the aromatics industry with higher added value. 　　Zhejiang Petrochemical’s 40-million-ton refining project may rewrite the eastern petrochemical map. On Thursday, Zhejiang Rongsheng Petrochemical’s Singapore subsidiary, Rongsheng Petrochemical (Singapore) Pte. Ltd., held an opening ceremony in Singapore. Rongsheng Petrochemical (Singapore) Pte. Ltd., located in Marina Bay Financial Center (MBFC), has a registered capital of RMB 614.4 million (equivalent to US$96 million). The company holds 100% of the equity of Rongsheng Petrochemical (Singapore). In the future, the company will be responsible for the procurement of raw materials including crude oil, naphtha and fuel oil. In the short term, it will still mainly purchase naphtha and fuel oil to supply downstream enterprises within the group. In the long term, it will purchase crude oil for the 40 million tons/year Zhoushan Big Mac refining project planned to be completed in 2020. 　　According to reports, the Zhejiang Petrochemical refining project led by Rongsheng Petrochemical plans to have a refining capacity of 20 million tons/year in the first phase and a refining capacity of 20 million tons/year in the second phase. The total investment of the project is expected to be 80 billion yuan, and the expected completion times are 2018 and 2020 respectively. 　　A few years ago, Shell was interested in planning a large-scale oil refining project in nearby Taizhou with PetroChina and Qatar Petroleum, but it was later interrupted due to sudden changes in the market situation. 　　1 is the location of Zhejiang Daishan Dayushan Zhoushan Green Petrochemical Base Project. The main investors of this giant project located in Zhejiang Daishan Dayushan Zhoushan Green Petrochemical Base are Zhejiang chemical private enterprise giants, namely Rongsheng Petrochemical, Tongkun Petrochemical and Juhua Group. The National Enterprise Credit Information Disclosure System shows that Zhejiang Petrochemical Company has a registered capital of 1 billion yuan, of which Rongsheng Holdings accounts for 51%, Juhua Group and Tongkun Group each invested 200 million yuan, accounting for 20%, and Zhoushan Marine Development invested 90 million yuan, accounting for 9%. 　　The main idea is to extend upstream to supply low-cost raw materials for the aromatics industry with higher added value. The project had previously planned a million-ton ethylene project, but it has not been mentioned again recently. 　　It is reported that the current project planning and design is progressing smoothly. Design contracts have been signed with China Huanqiu Engineering Company, Sinopec Luoyang Engineering Company, etc., and a process package contract has been confirmed with an internationally renowned refining technology solution provider. 　　At the end of May 2016, ENN Group and Zhejiang Rongsheng Holding Group signed a strategic cooperation agreement in Hangzhou to connect ENN's 10-million-ton Zhoushan LNG receiving station and Rongsheng's 40-million-ton/year green petrochemical base project in Zhoushan. The latter may become the largest buyer of ENN's Zhoushan LNG resources. 　　However, although the project is listed among the "Thirteenth Five-Year Plan for Major Construction Projects in Zhejiang Province", there is no news that the project has been approved. * * Relevant approvals and approvals from the National Development and Reform Commission and the Ministry of Environmental Protection. 　　The advancement of the Zhejiang petrochemical project will mean the birth of China's largest privately-owned large-scale oil refining project (if it is completed at the same time as the Hengli Changxing Island project). It will raise new issues for industrial policies including crude oil imports, mixed-ownership reform of the refining and distribution sectors, and will also rewrite the pattern of state-owned private investment in refined oil products in East China and the existing territory of the aromatics market.