Must-see project updates in the petrochemical industry!

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Petrochemical Connections ◆ Hainan Refining & Chemical’s second aromatics project will begin construction by the end of the year, with a total investment of 4.8 billion yuan. Despite crude oil prices remaining low since 2016, China Petrochemical Hainan Refining & Chemical Co., Ltd., the largest industrial enterprise in Hainan Province, has still delivered impressive results. Data provided by the company shows that in the first eight months of this year, Hainan Refining processed a total of 5.96 million tons of crude oil, achieving a total industrial output value of 24.432 billion yuan and generating 5.416 billion yuan in tax revenue. “The company’s second aromatics project has recently been approved by the headquarters of Sinopec. With a total investment of 4.8 billion yuan, construction is set to begin in full by the end of this year, with completion planned for 2018. ”Cai Zhi, the person in charge of Hainan Refining and Chemicals, revealed. This is the latest example of Hainan Refining & Chemical, which has been in operation for nearly 10 years, continuing to contribute to the green rise of the international tourism island. Data shows that from its commissioning in 2006 to the end of August this year, Hainan Refining & Chemical has processed a total of 87.54 million tons of feedstock oil (of which 84.22 million tons was crude oil), producing 81.03 million tons of various products. The company has paid a total of 64.3 billion yuan in taxes and fees; for nine consecutive years, it has ranked first in Hainan Province in terms of annual tax payments. The company has played an important role befitting a key state-owned enterprise in areas such as increasing tax revenues, ensuring market supply, boosting the economy, and promoting employment. On September 28, 2006, all 15 oil refining and chemical production units of Hainan Refining & Chemical’s first-phase project, with a total investment of 11.6 billion yuan and a capacity of 8 million tons per year, were successfully commissioned in one go. The entire production process was operational, and qualified products were produced, marking the completion and commissioning of this project. “This has truly and completely transformed Hainan’s industrial landscape. From then on, Hainan had a much stronger foundation for developing its new type of industries; the petrochemical industry has since become a pillar industry for Hainan’s economy. ”A relevant official from the Yangpu Development Zone Management Committee said. In 2014, following expansion and renovation, the number of production units at Hainan Refining & Chemical increased from 15 to 26, and its processing capacity rose from 8 million tons per year to 10 million tons per year. The first domestically produced aromatic compounds complex was built, enabling the company to transition from a pure refining operation to an integrated refining and chemical manufacturing enterprise. At the same time, the company adheres to the principles of intrinsic safety and environmental protection as well as sustainable development; its efforts in these areas are at the leading level in China and have reached international advanced standards. Active efforts are being made to upgrade product quality; the quality of refined oil meets all National V standards, and upgrades to National VI standards are currently in progress. Furthermore, as the leader of Hainan’s petrochemical industry, Hainan Refining & Chemical plays an increasingly significant role in driving development and exerting a catalytic effect; it contributes more and more to the economic and social progress of Hainan. Companies that support this industry, such as Shihua Jiaseng, Yisheng Petrochemical, Handi Sunshine, and Huizhi Petrochemical, are thriving, and the industrial chain continues to expand. At present, the petrochemical industry accounts for the largest share in Hainan’s industrial economy; the leading enterprise in this sector, Hainan Refining and Chemical Industry, contributes half of the total output value of the Yangpu Development Zone. According to Cai Zhi, since the beginning of this year, the company has made further use of its strategic location in Hainan as a hub on the Belt and Road Initiative to expand its exports and engage fully in international competition. Exports now account for 40% of the company’s total production, with target markets having been expanded to various countries and regions in Southeast Asia, Europe, and North America. ◆ Zhonghai Fine Chemicals can use 1.86 million tons of imported crude oil per year. On September 27, a public announcement regarding the verification and assessment of the use of imported crude oil by Shandong Zhonghai Fine Chemicals Co., Ltd. was published on the official website of the China Petroleum and Chemical Industry Federation; this marks another instance where approval for the import of crude oil has been granted, following the case of Shenchi Chemical last month. According to the public information, Shandong Zhonghai Fine Chemicals Co., Ltd. was established in 2007; its production volume was 400,200 tons in 2014 and 618,100 tons in 2015. CNOOC Fine intends to retain one atmospheric and vacuum distillation unit with a designed crude oil processing capacity of 2.3 million tons per year ； It is planned to phase out 2 outdated constant-pressure and reduced-pressure refining units in the same province through mergers and reorganizations, resulting in a total crude oil processing capacity of 1.55 million tons per year ； The upgrade of the quality of National V gasoline and diesel was completed as promised by the end of 2015. It has been preliminarily confirmed that China Offshore Fine Chemicals can utilize 1.86 million tons of imported crude oil per year. According to statistics, 16 local refining companies have currently been officially approved to import crude oil, with a total quota of 64.5288 million tons per year ； Twelve of these companies have also been approved for the right to import crude oil through non-state trade, with a total quota of 46.79 million tons per year. Applications from 4 refineries for the right to import crude oil are currently under review or awaiting formal approval, with a total quota of 11.7 million tons per year. The aforementioned enterprises will retain a total original primary processing capacity of 100.1 million tons per year, while phasing out 56.43 million tons per year. In addition, the applications from 3 refining companies—Fengli Petrochemical, Jincheng Petrochemical, and Rizhao Lanqiao Port Petrochemical—have already passed the written review. ◆ The Birth of the SCR Denitration Catalyst for Catalytic Cracking Flue Gas at the Petrochemical Research Institute: In late September, reporters learned that the 168-hour calibration test of the SCR denitration system for catalytic cracking flue gas at China Petroleum’s Qingyang Petrochemical plant had been completed. Since then, CNPC has possessed a complete set of catalytic flue gas denitration technologies with independent intellectual property rights. The “Gem Flower” initiative by the Research Institute of Petroleum and Petrochemicals of China realizes the dream of protecting the blue sky; yet another “Green Shield” has been created. The Petrochemical Research Institute is focusing on efforts to reduce nitrogen oxide emissions; both nitrogen oxides themselves and the secondary pollutants they generate can cause harm to the ecological environment. The National Environmental Statistics Bulletin shows that since 2006, nitrogen oxide emissions in China have increased rapidly, with total nitrogen oxide emissions reaching a record high in 2011. It is urgent for the petrochemical industry to strengthen the control and treatment of nitrogen oxides. To protect the ecological environment, fulfill social responsibilities, and position PetroChina as a leader in environmentally friendly and green production, the Group Company attaches great importance to the reduction of nitrogen oxides emissions. With strong support from the Department of Science, Technology and Management, the Research Institute of Petroleum Processing has conducted research on reducing nitrogen oxide emissions, focusing its strategic efforts on SCR technology. Through intense efforts, the Petrochemical Research Institute developed an SCR catalyst with independent intellectual property rights in just one year. It then worked closely with the Dalian Design Branch of the engineering construction company to carry out process engineering research, progressing to industrial testing. Since June 8 this year, the SCR denitrification system for catalytic cracking flue gas at Qingyang Petrochemical, built using indigenous technologies, has been operating stably, yielding remarkable environmental benefits. To date, it has achieved a reduction of nearly 50 tons in nitrogen oxide emissions. The calibration results showed that after treatment by the denitration device, the average outlet nitrogen oxide concentration was 47.9 milligrams per cubic meter, and the average ammonia escape level was 0.28 microliters per liter, which are significantly lower than the design values of 100 milligrams per cubic meter and 3.0 microliters per liter. These data demonstrate the scientific and technological strength of the Petrochemical Research Institute, making a significant contribution to China National Petroleum Corporation’s environmental protection efforts. Denitration catalysts were developed in China’s petroleum industry. As a technology widely used for flue gas denitration, SCR relies on catalysts as its core component. At the Lanzhou Center of the Petrochemical Research Institute, which boasts extensive technical expertise, a group of young people committed to environmental protection, after overcoming the challenge of treating rubber wastewater, promptly took on the task of developing SCR denitration catalysts. Technical review and planning, literature research, equipment procurement and commissioning, experimental design, evaluation of various carriers, screening of active components, selection of calcination methods... All tasks are being carried out simultaneously. The project team members are working around the clock, putting in extra efforts beyond their normal workload. Racing against time and competing for efficiency, they finally completed a \"task that seemed impossible.\" After hundreds of trials and pilot tests on catalyst molding, two catalysts, PDN-101 and PDN-102, were finally determined. Subsequently, after cubic magnification, a long-term laboratory comprehensive performance evaluation was conducted on the PDN-102 catalyst. At the demonstration meeting organized by the Department of Science and Technology Management, the expert panel unanimously agreed that the activity indicators of the SCR catalysts developed and produced by the Lanzhou Center meet national standards and have reached the level suitable for industrial application. Therefore, efforts should be made to accelerate their industrialization process. The Technology Management Department subsequently assigned the task of conducting industrial trials on the FCC unit at Qingyang Petrochemical, where the application of proprietary technologies is being actively promoted. With its own technology, Qingyang Petrochemical has pursued industrialization; the project team from the Petrochemical Research Institute supervised the entire production process at the catalyst manufacturing plant, where 60 cubic meters of industrial catalyst were produced, and 40 standard modules were assembled. The renovation of denitration equipment, catalyst loading, and the establishment of analysis methods at Qingyang Petrochemical – task after task, with no moment of relaxation for everyone involved. On December 15, 2015, the denitration waste heat boiler unit after renovation at Qingyang Petrochemical was completed. On February 1, 2016, the blank test for continuous monitoring of flue gas concentration changes at the inlet and outlet of the device was completed. On June 5, the transition test was completed. On June 8, ammonia spraying began officially. 5 minutes later, the nitrogen oxides at the denitration outlet showed a significant decrease. The catalytic cracking SCR flue gas denitration catalyst was successfully used in the 1.6 million tons per year catalytic cracking SCR denitration unit at Qingyang Petrochemical during its first operation. Today, in Qingyang, a new city on the elevated plateaus is brimming with vitality ； To the southwest of the city, the refinery towers of Qingyang Petrochemical Company stand tall, shining brightly under the sky of the old district. It can be said that, in order to preserve the abundant \"Chinese blue\" across the land of China, researchers from the China National Petroleum Corporation’s Research Institute of Petrochemical Technology are constantly fighting against nitrogen oxides, which pose a threat to this \"Chinese blue\" color. ◆ 12 chemical enterprises in Zhejiang have their production capacities of 88,300 tons included on the list for elimination. According to the Office of the Leading Group for Industrial Transformation and Upgrading in Zhejiang Province, the list of capacities to be eliminated in 2016 has been released. Eleven industries, including those in the medical chemicals, steel manufacturing, and papermaking sectors, are included in this provincial elimination plan; 12 chemical enterprises are involved, with a total of approximately 88,300 tons of outdated production capacity needing to be eliminated. The outdated production capacities that are to be phased out include: 23 production lines at Zhejiang Xinan Chemical Group Co., Ltd.’s Jiande Pesticide Factory, which produce dimethyl phosphite, glyphosate aqueous solutions, glyphosate granules, monomethylamine, chlorpyrifos, dichloroquinoline acid, various additives, chloromethane, chlorinated rubber, and sodium chloride – with a total production capacity of 20,000 tons; Ningbo Jinhai Yabao Chemical Co., Ltd.’s production line for antioxidants, with an annual capacity of 5,000 tons; Jiaxing Nanhu District Liangyou Adhesive Factory’s production line for spray adhesive cotton, with an annual capacity of 2,000 tons; Zhejiang Shapaisi Pharmaceutical Co., Ltd.’s production line for synthetic preparations, with an annual capacity of 5,000 tons; Jiaxing Tianyuan Pharmaceutical Co., Ltd.’s production line for 2,3,4,5-tetrafluorobenzoic acid, with an annual capacity of 800 tons; Haiyan Huaqiang Resin Co., Ltd.’s production line for phenolic resins, with an annual capacity of 4,000 tons; the chemical product production lines at Dongyang City’s Third Chemical Factory in Zhejiang Province; Zhejiang Huayi Pharmaceutical Co., Ltd.’s production line for pharmaceutical products, with an annual capacity of 35 tons; Jiemaa Chemical Co., Ltd.’s production lines for phosphorus trichloride and acetyl chloride, totaling a production capacity of 22,000 tons; Jiangshan Jinguote Chemical Co., Ltd.’s production line for diazotype photosensitive adhesives, with an annual capacity of 2,700 tons; Jiangshan Fuda Chemical Co., Ltd.’s three production lines for aluminum sulfate, dimethyl sulfate, and silicone oils, totaling a production capacity of 17,000 tons; and Jiangshan Longtao Chemical Co., Ltd.’s eight production lines for phosphorus pentoxide, totaling a production capacity of 8,000 tons. The Zhejiang Provincial Office for Industrial Transformation has requested all cities and districts to **take comprehensive measures, strengthen supervision, inspection, and evaluation, in order to ensure that the targets set for phasing out outdated and excess production capacity in 2016 are fully achieved by the end of November this year**. Successive provincial committees and governments in Zhejiang Province have attached great importance to the task of phasing out outdated production capacities, treating it as an important measure to accelerate the transformation of the economic development model and promote economic upgrading, and by implementing strong policies in this regard, significant results have been achieved. For example, in 2015, in Zhejiang Province alone, the medical and chemical industry eliminated a total of 344,800 tons of outdated production capacity, involving 36 companies; some of the products in question came from well-known chemical manufacturers. After Zhejiang Jianye Chemical Co., Ltd. relocated to the industrial park, two production lines for di(iso)butyl phthalate with a capacity of 40,000 tons per year, two production lines for ethylamine with a capacity of 27,000 tons per year, two production lines for isopropylamine with a capacity of 10,000 tons per year, and one production line for n-propylamine with a capacity of 10,000 tons per year—all located in the old factory—were required to be demolished within a specified timeframe. It is also understood that in the first half of this year, Zhejiang Province eliminated 700 enterprises with outdated or severely overcapacity production capabilities. It shut down and reformed 7,500 enterprises (workshops) that were in poor condition or operated on a small scale. Additionally, 145 \"zombie enterprises\" were dealt with, which significantly reduced the negative impact of outdated and overcapacity production capacities on industrial growth. ◆ On September 20, Yangzi Petrochemical signed a contract for a project aimed at upgrading the quality of its petroleum products. Once completed, the gasoline and diesel produced by this company will meet the National VI standards. The refining business is Yangzi Petrochemical’s weak point; the original design of the previous round of refining renovation projects was primarily aimed at supporting the third phase of ethylene production upgrades, as a result of which the capacity of some facilities could not be fully utilized, and the yield of high-value-added products was low. On the one hand, Yangzi Petrochemical is accelerating the optimization and renovation of its existing refining units, making full use of these units to increase the production of gasoline and jet fuel, while minimizing diesel production in order to balance the output of heavy oil. On the other hand, Yangzi Petrochemical is accelerating structural adjustments, implementing projects to upgrade the quality of its petroleum products, and pushing forward with such improvements. The oil quality improvement project will involve the construction of new refining units such as residue hydrogenation units, which will effectively enhance the adaptability, flexibility, and efficiency of crude oil processing. It will also enable full utilization of the potential of existing refining units like atmospheric and vacuum distillation units, improve the efficiency of existing assets, and optimize the product mix. Upon completion of the oil product quality upgrade project, both gasoline and diesel produced by the company will meet the China VI standards. ◆ Shenhua Materials signed a contract for gasifier burners with Xi’an Aerospace Yuanpower Engineering. On September 26, 2016, Shenhua Materials Group entered into a contract with Xi’an Aerospace Yuanpower Engineering Co., Ltd. for the procurement of integrated start-up burners for the Shell gasifiers used in the Shenhua Ordos coal-to-oil project; the value of this contract was over 1.7 million yuan. The integrated start-up burner for Shell gasifiers purchased this time is a core and essential device in the coal-to-oil chemical company’s gasification process, as well as a material that is urgently needed at the production site. Xi’an Aerospace Power Engineering Co., Ltd. is a wholly-owned subsidiary of Xi’an Aerospace Propulsion Institute. It maintains a strategic partnership with Huawei, and the two parties cooperate in the fields of energy conservation, environmental protection, and petrochemicals. ◆ The Shaanxi Coal Chemical Technology and Engineering Center signed the first process licensing contract for a new technology in xylene production. On September 14, 2016, the new xylene production technology, independently developed by Shaanxi Coal Chemical Technology and Engineering Center Co., Ltd. and featuring complete independent intellectual property rights, had its first process licensing contract finalized in Shandong. The new technology for p-xylene production is a completely new approach that uses toluene and methanol as raw materials, along with a circulating fluidized bed process, to manufacture p-xylene. In November 2015, scale-up test studies on a scale of 100 tons were completed for this technology. The results of the 72-hour on-site evaluation showed that the one-pass conversion rate of toluene was 51.77%, the one-pass conversion rate of methanol was 98.94%, and the selectivity for p-xylene was 85.73%. Compared with traditional petrochemical p-xylene production processes, this technology features high selectivity for the target product p-xylene and flexible adjustability of the product profile ； Compared with similar toluene-methanol-based p-xylene production technologies, this technology features continuous catalyst regeneration, stable product distribution, and high raw material conversion efficiency, placing its overall technical level at the international forefront among such technologies. The signing of the first process licensing contract for the new technology in p-xylene production represents an important step forward in the commercial application of this technology. It is also a milestone for the company in the field of technology sales over the past few years, indicating that all stages from laboratory research and industrial-scale testing to market sales have been successfully completed. More importantly, it provides a clear direction for the subsequent research and development as well as production of catalytic materials. Preliminary estimates suggest that using this technology to produce p-xylene will reduce the cost per ton of product by 500–1,000 yuan compared to traditional petroleum-based methods, offering significant economic advantages. Moreover, the implementation of this technology enables an organic integration of coal chemical and petroleum chemical processes, paving the way for new production routes for p-xylene. ◆ Several local refineries, including Dongming Petrochemical and HSBC Petrochemical, have failed to fulfill their commitments regarding the phasing out of outdated production capacities. Recently, the Shandong Energy Regulatory Office conducted a special inspection on how local refineries in Shandong Province with qualifications to import crude oil were adhering to their commitments; most of these refineries have largely met their obligations. However, it has also been found that some enterprises face certain issues in phasing out outdated production capacity and building LNG storage facilities. The commitment made by three enterprises, including Dongming Petrochemical, to phase out three outdated production facilities has not been fulfilled; similarly, the construction of three LNG storage facilities promised by three other enterprises, including Huifeng Petrochemical, remains incomplete. It is reported that the inspection team randomly inspected 8 companies, including Shandong Tianhong Chemical Co., Ltd., Shandong Huifeng Petrochemical Group Co., Ltd., and Shandong Dongming Petrochemical Group. 　Based on the inspection results, local refineries with the qualification to use imported crude oil have generally fulfilled their commitments. All enterprises fulfilled their commitments to upgrade the quality of their refined petroleum products on schedule, completing the transition to National V standard gasoline and diesel by the end of 2015. The demolition of outdated production facilities has been largely completed, and all the outdated facilities that most companies had committed to phasing out have been removed. The construction of LNG storage facilities is proceeding relatively slowly; alternative plans have been devised for areas where construction is not feasible. Eight enterprises qualified to use imported crude oil have committed to phasing out 23.82 million tons of outdated production capacity; 20.52 million tons of such capacity has already been eliminated, playing a significant role in reducing excess production capacity in Shandong Province’s refining and chemical industry. The inspections also revealed that some enterprises have issues in phasing out outdated production capacity and building LNG storage facilities. The commitment made by three enterprises, including Dongming Petrochemical, to phase out three outdated production facilities has not been fulfilled; similarly, the construction of three LNG storage facilities promised by three other enterprises, including Huifeng Petrochemical, remains incomplete. The Shandong Energy Regulatory Office requires that relevant enterprises strictly fulfill their commitments and completely phase out outdated production capacities. Enterprises that have not yet fulfilled their commitments to phase out outdated production capacity must promptly formulate and implement asset disposal plans, dismantle and destroy the relevant equipment at the earliest possible time. Such equipment shall not be used for reproduction, nor as backup facilities, and it cannot be resold or rebuilt elsewhere, to ensure that the task of phasing out outdated production capacity is truly carried out. Companies that have not completed the construction of LNG storage facilities should promptly implement alternative solutions, accelerate project construction, and ensure that it is completed within the promised timeline. ◆ On the morning of September 26, a signing ceremony was held for the project to produce 600,000 tons of aromatics per year at the Hongda Industrial Park in Mengjin County. Zong Guoming, the head of Mengjin County’s people’s government, and Duan Junfang, the chairman of Luoyang Refining and Chemical Hongda Industry Co., Ltd., signed the agreement on behalf of their respective parties. This signifies that the people of Mengjin County, together with Luoyang Guohong Investment Group Co., Ltd., Luoyang Refining and Chemical Hongda Industrial Co., Ltd., and Luoyang Ruize Petrochemical Engineering Co., Ltd., will engage in extensive cooperation in the petrochemical sector. Collectively, they will strive to make new strides in the development of the high-end petrochemical industry in Mengjin County and even throughout Luoyang City. At the same time, it is also a major and joyful event in the economic and social development of Mengjin County; it is furthermore a concrete action to greet the successful convening of the 11th Municipal Party Congress with outstanding achievements. Fu Tongxin, Chairman and Party Secretary of Luoyang Guohong Investment Group Co., Ltd.; Duan Junfang, Chairman of Luoyang Refining and Chemical Hongda Industry Co., Ltd.; Ma Xiao, Chairman and General Manager of Luoyang Ruize Petrochemical Engineering Co., Ltd.; Jiao Haichao, General Manager of Luoyang Refining and Chemical Hongda Industry Co., Ltd.; Zhang Xiufeng, Deputy General Manager of Luoyang Guohong Investment Group Co., Ltd.; Xu Zhiming, Meng Qingjun, Teng Zuguang, Wang Jianwei, and Lan Guoyou, as well as local leaders from Mengjin County – including Huang Yuguo, Zong Guoming, Luo Kezhen, Niu Zhongyuan, Niu Zhengjie, Xin Junfeng, Li Fengbao, Xie Wenchuan, Cui Zhanke, and Luan Hongwei – attended the ceremony and witnessed the signing. In his enthusiastic speech, Huang Yuguo, Secretary of the Mengjin County Party Committee, extended warm congratulations on the official signing of the Hongda Industrial Park project on behalf of the county party committee, the county people’s congress, the county government, the county political consultative conference, and the 460,000 people of the entire county. He pointed out that Mengjin County is separated from Luolian Hongda Company by a river, and the friendship between the two sides dates back a long time. Since 2015, with the implementation of Luoyang Petrochemical’s 18 million-ton oil refining expansion project, the provincial and municipal authorities have put forward a strategy for integrating the petrochemical and coal chemical industries. A plan for a high-end petrochemical industry cluster worth hundreds of billions of yuan was developed for the Mengjin Huayang Industrial Cluster and the Geely Petrochemical Industrial Cluster, with the aim of creating such a cluster. Seizing this significant development opportunity, Mengjin County has made high-end petrochemicals one of the two key industries it focuses on developing. It has actively planned and constructed a petrochemical post-processing park in the Huayang Industrial Cluster, covering an area of over 10,000 mu and equipped with all necessary facilities, thereby creating the conditions for the implementation of the Hongda Industrial Park project. Huang Yuguo said that Luoyang Refining and Chemical Hongda Industry Co., Ltd., as the largest restructured enterprise under Sinopec and one of the top 100 industrial enterprises in Henan Province, holds a leading position in the field of petrochemical downstream processing in China. As a municipal comprehensive state-owned capital investment and operation company, Luoyang Guohong Group plays a crucial role in supporting the industrial development of the entire city and facilitating the reform of state-owned enterprises; it possesses strong capabilities and holds an important position. With the strong support of Guohong Company, Hongda Company chose to build a petrochemical park in Mengjin. This decision not only reflects the sincerity of cooperation among all parties involved, but also demonstrates their strategic vision and foresight for achieving mutual benefit through collaboration and fostering industrial development. It represents an important achievement in implementing the efforts of the municipal party committee and government to strengthen cooperation between enterprises and local authorities and to accelerate the development of key industries. We are firmly convinced that the implementation of the Hongda Industrial Park project in the Mengjin Huayang Industrial Cluster will further promote the integration of the large-scale petrochemical industry on both sides of the Yellow River, laying a solid foundation for the development of a high-end petrochemical industry cluster worth hundreds of billions in value throughout the city. Once completed, the project will undoubtedly make a significant contribution to strengthening the high-end petrochemical industry in Mengjin and even Luoyang, accelerating the development of a modern industrial system, and helping to achieve the goals of \"four highs, one strength, and one leadership position\". Huang Yuguo emphasized that today’s signing ceremony is not only a major achievement of the sincere cooperation between both sides, but also a new starting point for mutual benefit and win-win results. Mengjin will always adhere to the principle of “putting investors first, helping them make profits, and facilitating their success”. With utmost sincerity and effort, it will provide a favorable environment and high-quality services for project development. The county Party committee and the county government will fully support the project construction. They will form a dedicated team to strengthen coordination and communication, and provide all necessary services. They will truly anticipate the needs of the project, address its urgent concerns, and fulfill its requirements, so as to ensure that the project gets underway, becomes operational, and yields results at an early date. This will enable the cooperation between both parties to bear splendid fruits and achieve mutual benefit, win-win outcomes, and common development. ◆ Joint efforts are being made to ensure that the Sino-Science Refining and Chemicals project begins construction in full by the end of the year. On the afternoon of September 23, Dai Houliang, General Manager and Deputy Party Secretary of Sinopec Group, led a delegation to Zhanjiang to assess the progress of the preliminary work for this project. He held on-site discussions with Wei Hongguang, Secretary of the Municipal Party Committee, to advance all tasks more swiftly and effectively, further strengthening consensus. Both the local government and the enterprise will work together with all their efforts to ensure that the Sino-Science Refining and Chemicals project starts construction within this year. Lei Dianwu, Vice President of Sinopec Corporation; Zhao Zhihui, member of the Municipal Party Committee and Executive Vice Mayor; Xu Shun, member of the Municipal Party Committee and Secretary of the Party Committee of Zhanjiang Economic and Technological Development Zone; Cao Xing, Deputy Director of the Municipal People’s Congress and Secretary of the Municipal Party Committee, among others, attended the inspection. Led by Dai Houliang, the team braved the wind and rain to make their way to Donghai Island, going straight to the construction site of the Zhongke Refining and Chemical project. There they inspected the progress of land leveling and dike filling works, and listened to a report on the project’s progress presented by Chen Xiaowen, the general manager of Zhongke Refining and Chemical. They gained a detailed understanding of the planning and design aspects of the project, including its main supporting systems, the industrial park, upstream and downstream industries, as well as the local transportation infrastructure. They also learned about the current progress of preliminary tasks such as land acquisition, land leveling, and dock construction. Since Sinopec clearly proposed the establishment of a Maoming-Zhanjiang petrochemical integration complex in mid-July this year, the municipal party committee, the municipal government, the development zone, and Sinopec have formed a project construction coordination team to accelerate the progress of the project. As of the end of August, 81.9% of the site leveling work has been completed, 28% of the road construction within the factory area is done, 59.7% of the dredging and filling work for the cofferdams at the dock has been completed, 73.4% of the road construction for heavy equipment and utility tunnels is finished, 41.3% of the middle embankment work has been completed, and 320 meters of the western slope protection on the site have been completed. All parties are urgently working on formulating comprehensive plans and making every effort to advance various tasks. Dai Houliang expressed approval of the progress made in the preliminary stages of the Sinochem Refining project, and thanked the Zhanjiang Municipal Party Committee and government for their strong support for the project over the years. He demanded that enterprises accelerate all preliminary work in accordance with the already fully optimized project plan. It is necessary to strengthen communication and coordination with local authorities in order to select the optimal route plans for infrastructure such as railways, passages, and utility tunnels. It is hoped that Zhanjiang City will continue to provide full support and guarantees for the project construction, ensuring that the Zhongke Refining and Chemicals project begins construction by the end of this year, thus making its due contribution to the economic development of Zhanjiang. Wei Hongguang said that the schedule for the full commencement of construction of the Sino-Science Refining and Chemical project by the end of the year has been set. The Zhanjiang Municipal Party Committee and Government will, as always, provide full support and cooperation in the construction of the necessary supporting facilities. Both sides are expected to maintain communication and coordination in order to determine and scientifically optimize the plans for building these facilities, thereby achieving mutual benefit and success, and striving to have the project completed and put into operation as soon as possible. ◆ Lanzhou Petrochemical has partnered with Sudan’s KRC Refinery. At the beginning of September, the administrative director and technical director of Sudan’s KRC Refinery visited Lanzhou Petrochemical to discuss the use of catalysts in that refinery as well as related technical issues. Lanzhou Petrochemical has maintained a friendly cooperative relationship with KRC Refinery for many years; the relevant officials from the catalyst manufacturer provided answers to the questions raised by the representatives of KRC regarding catalyst consumption and the yield of target products. By enhancing communication and coordination, as well as optimizing catalyst formulations and production, both parties aim to better meet the needs of the plants and improve the economic efficiency of the KRC refinery. At the same time, the two parties discussed issues such as business cooperation regarding catalysts and the recovery of payment amounts; they initially reached an agreement to sign a long-term supply contract for a total volume of 3,800 tons, and reached a consensus on accelerating the recovery of payment amounts. Africa is an important part of the **Belt and Road Economic Belt**. In recent years, the extensive cooperation between Lanzhou Petrochemical and Sudan’s KRC refinery is a successful example of keeping pace with China National Petroleum Corporation’s overseas development strategy, making every effort to develop overseas markets and actively expanding its business scope. The development and implementation of overseas projects have promoted the in-depth advancement of overseas production technology services, and have also laid a solid foundation for Lanzhou Petrochemical’s \"Thousands Overseas Plan\". ◆ World’s largest coal-based olefins project: 3.6 million tons of methanol now in operation. At 2:30 a.m. on September 24, 2016, the 3.6 million tons per year methanol production facility (comprising 2 units, each with a capacity of 1.8 million tons) part of the Zhongtian Hechuang Ordos Coal Deep Processing Demonstration Project successfully produced qualified methanol products. In August 2016, the 3.6 million tons per year methanol synthesis unit of the Zhongtian Hechuang project began preparations for commissioning trials. The Methanol Department of Zhongtian Hechuang Chemical’s subsidiary organized the individual unit tests, low and high pressure airtightness tests, catalyst reduction tests, and water system tests for various equipment. After more than 40 days and nights of hard work, qualified methanol was produced at 2:30 a.m. on September 24, 2016, laying a solid foundation for the subsequent commissioning of the polyolefin production units in the project. In May 2014, the 3.6 million tons per year methanol synthesis unit of the Zhongtian Hechuang project officially commenced construction. On April 28, 2016, the methanol synthesis unit was successfully handed over. The Zhongtian Hechuang project is currently the world’s largest coal-to-olefins project; once completed, the capacity for methanol-to-olefins production will reach 3.6 million tons per year, utilizing the S-MTO technology developed through a collaboration between Sinopec Refining & Chemical Engineering and PetroChina Corporation. In 2013, the **National Development and Reform Commission approved the initiation of preliminary work for Zhongtian Hechuang’s 1.4 million-ton coal-to-olefins project. The total investment in the project is nearly 90 billion yuan. The Zhongtian Hechuang Ordos Coal Deep Processing Demonstration Project was designed in its entirety by Sinopec Refining & Petrochemical Engineering (SEG). It mainly includes production units for gasification, purification, methanol synthesis, methanol-to-olefins, and polyolefins, as well as supporting utility systems such as air separation plants, power boilers, circulating water systems, and tank areas. Sinopec Ningbo Engineering Co., Ltd. (SNEC) serves as the overall project manager and is responsible for the coal-to-methanol section; Sinopec Engineering Construction Co., Ltd. (SEI) is in charge of the olefin section, while Sinopec Shanghai Engineering Co., Ltd. (SSEC) is responsible for the three polyolefin units. The Zhongtian Hechuang Ordos coal chemical project is jointly developed by Sinopec Corporation, China National Coal Energy Group Corporation, Shanghai Shenneng Group Co., Ltd., and Inner Mongolia Manshi Coal Group Company. The shareholding ratio is as follows: 38.75% for China National Coal Energy Group Corporation, 38.75% for Sinopec Corporation, 12.5% for Shanghai Shenneng Group Co., Ltd., and 10% for Inner Mongolia Manshi Coal Group Company. The Zhongtian Hechuang project mainly involves the construction of facilities for producing 25 million tons per year of coal, 3.6 million tons per year of methanol, 1.37 million tons per year of olefins, as well as other supporting facilities. The original product plan for the project was 4.2 million tons per year of methanol and 3 million tons per year of dimethyl ether. ◆ Xinyangfeng’s 600,000-ton nitro compound fertilizer project has been completed and put into operation. On September 23, Xinyangfeng (000902) issued a statement stating that the company’s private placement project, namely the 600,000-ton/year nitro compound fertilizer production facility at Jingmen Xinyangfeng Zhongphosphatic Fertilizer Co., Ltd., has been completed and is now in operation. According to the plan, the total budget for this project is approximately 630.92 million yuan. It involves the construction of a production line capable of manufacturing 300,000 tons per year of high-tower granulated nitrogen-based water-soluble fertilizers designed for crops, as well as a production line capable of producing 300,000 tons per year of spray-granulated nitrogen-based slow/controlled-release fertilizers. In addition, there will be a production line for nitric acid with an annual capacity of 100,000 tons. Xinyangfeng stated that once the 600,000 tons per year nitro compound fertilizer production facility is completed and put into operation, it will complement the company’s manufacturing base in Jingmen. This will enable the company to take full advantage of its scale advantages, accelerate the optimization of its product portfolio, further enhance its profitability and competitive edge, and have a positive impact on the company’s future financial performance. ◆ The first batch of low-molecular-weight alkylbenzenes produced by Fushun Petrochemical’s detergent factory was made available on the market. On September 9, five railway tank cars loaded with 317 tons of low-molecular-weight alkylbenzenes slowly left the detergent factory of Fushun Petrochemical and headed for Dongxin Factory in Jinan, Shandong Province. Fushun Petrochemical Chemical Plant produces 200,000 tons of alkylbenzene per year, 40,000 tons of alkylbenzene sulfonic acid, and 23,000 tons of alkylbenzene for oil displacement. In recent years, oil prices have continued to fall, and the domestic and international chemical markets have been sluggish; as a result, alkylbenzene and alkylbenzene sulfonic acid production plants in the detergent industry are unable to operate at full capacity. In the context of reducing overcapacity, inventory levels, leverage, costs, and addressing weaknesses, soap and detergent manufacturers focus on efficiency and are market-oriented, adjusting their product portfolios based on market prospects. They started with supply-side reform, segmented target markets, and sought out profitable products. In the first half of this year, through multiple visits to customers, the chemical plant learned that the market for low-molecular-weight alkylbenzenes held good prospects, and in August it began organizing pilot production of such compounds. From August 29 to September 2, the detergent factory carried out its first trial production of low-molecular-weight alkylbenzenes, achieving success on the first attempt and producing 958 tons of qualified products. The creation of new products from scratch marks a significant step by the detergent factory in adjusting its product portfolio, moving toward the production of a wider variety of products. ◆ Lanzhou Petrochemical enters a new era of hydrodesulfurization. On the eve of National Day, significant progress was made in the project to upgrade its facilities – diesel and gasoline are set to undergo significant transformations. The construction work related to the upgrade of the 1.8 million tons per year gasoline hydrogenation plant to meet National V standards has been completed; the renovation of the 3 million tons per year diesel hydrogenation plant is in its final stages, and the upgrading of oil quality is expected to be fully completed soon. Starting from January 1, 2017, gasoline and diesel for vehicles that meet National Standard V will be available nationwide. Lanzhou Petrochemical carried out quality upgrades to meet National V standards on its refinery’s 1.8 million tons per year gasoline hydrogenation unit and 3 million tons per year diesel hydrogenation unit. These upgrades not only laid the foundation for the production of high-performance, high-quality petrochemical products but also set the fastest record for the construction of similar units in China. ◆ The 400,000-tonne ethylene oxide production project in the Yangzhou Chemical Industry Park has come online. After three years of construction, the project built by Far East United Petrochemical (Yangzhou) Co., Ltd. within this industrial park, with an investment of $600 million, to produce 400,000 tonnes of ethylene oxide per year, was successfully completed and put into operation recently. It is capable of generating annual output worth over 3 billion yuan, accounting for 10% of the industry’s total production capacity; it is thus one of the largest producers of ethylene oxide. ◆ The PTA production project with an annual capacity of 1.2 million tons launched by Zhongtai Group was established in Korla. On the 22nd, in front of the booth representing Bortala Prefecture at the 5th China-Asia Europe Expo, Shangku Comprehensive Industrial Park in Korla and Zhongtai Group Co., Ltd. held a signing ceremony for the cooperation project aimed at producing 1.2 million tons of PTA per year. Zhongtai Group Co., Ltd. is a state-owned asset holding company that receives key support from Xinjiang, and it is also a high-quality listed enterprise in the region. The company currently has 21 holding companies and 7 affiliated companies. The company mainly deals in polyvinyl chloride resin (PVC), ion-exchange membrane caustic soda, viscose fiber, cotton yarn, and other products. The products are sold in provinces and regions across the mainland, as well as exported to Russia, Central Asia, South Asia, South America, Africa and other regions, enjoying a high level of market recognition and reputation. It is reported that the \"1.2 million tons per year PTA production\" project that Zhongtai Group Co., Ltd. plans to build in Bayingolin Mongol Autonomous Prefecture led to the establishment of \"Zhongtai Kunyu New Materials Co., Ltd.\" in Korla in July 2016. According to reports, this is a petrochemical project within the PTA industrial chain with a total investment of 4.6 billion yuan and an annual production capacity of 1.2 million tons. It is connected upstream to the PX and oil & gas industries, and downstream to the polyester, staple fiber, and filament industries. The project will also foster the development of blended fabrics locally, thereby increasing the added value of petrochemical products. It will fill a gap in Xinjiang’s textile, apparel, and chemical fiber industries, enable diversified development of oil and gas resources in southern Xinjiang, and extend the petroleum and natural gas industrial chain. Thus, it holds great significance for promoting the economic development of Bayingolin Mongol Autonomous Prefecture. ◆ In September, China’s crude oil processing volume is expected to increase by 4.4% year-on-year. It is anticipated that the crude oil processing volume at domestic refineries in September will remain unchanged compared to August. If the forecasts prove correct, China’s crude oil processing volume will increase by 4.4% on a year-on-year basis in September. However, a decline in demand for refined products such as gasoline domestically will lead to an increased surplus in supply. It is estimated that in September, China’s gasoline production will reach 2.985 million barrels per day, while consumption is expected to be around 2.703 million barrels per day. This will result in a supply surplus of approximately 282,000 barrels per day. ◆ Yulin is striving to build a **high-end energy and chemical industry base**. In accordance with the three transformation strategies outlined by the Shaanxi Provincial Party Committee and the provincial government—namely, “transforming coal into electricity, converting coal-fired power into energy-intensive industrial products, and turning coal, oil, gas, and salt into chemical products”—Yulin is working to transform the development model of its energy industry. This has led to the formation of an integrated development pattern encompassing upstream and downstream industries such as coal power, coal chemical processing, and energy-intensive industries. In 2015, Yulin’s coal production accounted for 9.6% of the nation’s total output; it is truly a major coal-producing city. “\"Yulin coal\" has been officially recognized as a \"geographical indication certified trademark\" and is known as \"environmentally friendly coal\" and \"clean coal\". The lanthanum carbon industry in Yulin has developed into the largest and most technologically advanced coal pyrolysis industry cluster in China. Yulin adheres to a path of advancing project development at a high level, focusing its efforts on bringing in large-scale projects for industrial bases as well as world-leading demonstration facilities. To date, it has implemented 7 projects with a value of over 10 billion yuan in terms of resource conversion, 5 projects worth between 5 billion and 10 billion yuan, and 19 projects worth between 1 billion and 5 billion yuan. Shaanxi Non-ferrous Aluminum-Magnesium Alloys, Phase I of the Jingbian Energy and Chemical Industry Park, and Yanchang Group’s world’s first pilot project for co-processing kerosene – among others – have been completed and put into operation. The Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project, with an individual investment of over 100 billion yuan, has already begun construction; it features the world’s first facility for producing olefins from gas oil. In certain areas of the energy and chemical industry, China has managed to reach the high end of the industrial chain. Since the beginning of this year, Yulin has strengthened collaborative innovation among industry, academia, and research institutions, as well as regional cooperation. It has accelerated efforts to tackle key technologies, vigorously developed large-scale olefin, aromatic hydrocarbon, and polyester industrial chains, and promoted the extension of coal chemical industry into downstream high-end products such as synthetic fibers, synthetic resins, and synthetic rubber. This aims to transform primary chemical raw materials into fine chemical products. The goal is to achieve a coal conversion rate of over 50% by 2020. ◆ Lanshi Heavy Equipment signed an EPC contract worth over 4.1 billion yuan overseas. On the evening of September 22, Lanshi Heavy Equipment announced that on September 20, it signed a contract for the first phase of the 5-million-ton-per-year oil refinery project in Cambodia. The total contract value is estimated at $620 million, equivalent to approximately 4.135 billion yuan. This amount represents 265.43% of the company’s audited main business revenue in 2015. It is reported that the owner of this project is Cambodia Petrochemical Co., Ltd. (referred to as “CamPetro”), which is the first company in Cambodia to hold a license for operating an oil refinery. It produces petroleum products that meet standards higher than Euro IV, supplying them to both the Cambodian domestic market and international markets. The project’s engineering components include: a 2 million-ton atmospheric and vacuum distillation unit, a 1 million-ton catalytic cracking unit, a 400,000-ton gasoline hydrogenation unit, an 180,000-ton light gasoline desulfurization unit, an 180,000-ton etherification unit, a 400,000-ton semi-regenerative reforming unit, a 60,000-ton benzene extraction unit, a 900,000-ton diesel hydrogenation and refining unit, a 25,000-ton ethylbenzene unit, a 160,000-ton gas fractionation unit, a 30,000-ton MTBE unit, a 70,000-ton sulfuric acid unit, and a PSA unit with a capacity of 10,000 cubic meters per hour. Lanshi Heavy Equipment stated that this contract is the largest EPC general contracting contract the company has signed to date, setting a historical record for the largest single export order in Gansu Province’s equipment manufacturing industry. With the implementation of the contract, it will have a highly significant positive impact on the company’s financial conditions and operating results for the current year as well as future accounting years. The announcement also stated that the signing of this contract represents a major achievement in the international industrial capacity cooperation under the Belt and Road Initiative. It serves as a model project for China and Cambodia to collaborate on major projects, as well as an exemplary case of economic and trade cooperation between the two countries. It will play a demonstrative and driving role in helping the company further expand its presence in the Cambodian market, while also further enhancing the visibility and influence of the Lanshi brand in the international market. ◆ CNOOC Shell completes the largest project financing deal in China’s petrochemical industry. Recently, CNOOC Shell Petrochemicals Co., Ltd. (hereinafter referred to as CNOOC Shell), a subsidiary of China National Offshore Oil Corporation, signed a loan agreement for its expansion project with a syndicate of eight financial institutions in Daya Bay, Huizhou, Guangdong Province. The total financing amount amounts to RMB 25.1 billion, making it the largest project financing deal in China’s petrochemical industry this year. 25.1 billion yuan: CNOOC Shell has secured the largest project financing deal in the petrochemical industry this year. The loan will be used for the construction and operation of the Huizhou Refinery Phase II chemical project, as well as the new Styrene Propylene Oxide/Polyether Polyol (SMPO/POD) project; the total investment for these projects amounts to 32.6 billion yuan. The signing of this agreement is a significant milestone for the CNOOC Shell Expansion Project, laying the foundation for its handover in the fourth quarter of this year. Thanks to its excellent performance over the ten years since its operation began in terms of safety and reliability in production as well as operational results, CNOOC Shell has, for the first time, been granted favorable terms for a credit loan without any guarantees. It obtained the loan at a highly competitive interest rate, while also seeing various innovations in the structure and terms of the financing. On March 21 this year, CNOOC and Shell Group officially reached an agreement to use CNOOC Shell as the entity for expanding their cooperation, in order to jointly invest in the construction and operation of the second phase of the Huizhou refining and chemical project; financing efforts were launched shortly thereafter. CNOOC and Shell each dispatched financing experts to form a project financing steering committee, which worked closely with the CNOOC-Shell financing team across time zones. Over a period of 5 months, they successfully completed the drafting, review, revision of all financing documents, as well as the bidding process, and reached an agreement with a syndicate composed of CNOOC Finance Company, Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, the **Development Bank, Bank of Communications, and China Merchants Bank. Most of the units in the CNOOC Shell expansion project are expected to come online in the second half of 2017. Once operational, CNOOC Shell will have an additional production capacity of 1.2 million tons per year for ethylene and 4.5 million tons per year for petrochemical products. This will make it one of the largest ethylene production facilities in Asia, with a capacity of 2.2 million tons per year. Not only will this increase CNOOC Shell’s production capacity, expand its product range, and improve overall energy efficiency, but it will also reduce China’s reliance on imported ethylene. It will further contribute to turning the Daya Bay Petrochemical Zone into a world-class petrochemical industry hub, thereby aiding in the transformation and upgrading of the economic structure in South China. ◆ Dushanbe Petrochemical supplies one-third of the refined oil products and 90% of the chemical raw materials in Xinjiang. On September 24, reporters learned from the \"80th Anniversary of Entrepreneurship\" commemoration event held by Dushanbe Petrochemical Company in collaboration with Dushanbe District of Karamay City that this company adheres to a development philosophy based on innovation, coordination, sustainability, openness, and sharing. Its annual sales revenue exceeds 60 billion yuan, while the taxes and fees it pays amount to nearly 10 billion yuan. In the first eight months of this year, the company achieved a profit of 3.2 billion yuan. Its overall performance ranked second among China’s oil refining and petrochemical enterprises, making a positive contribution to the steady development of Xinjiang. Over the years, Duhu Petrochemical has always placed great emphasis on collaborative development with local communities, leveraging its advantages in systems, raw materials, technology, and talent to support the expansion of the petrochemical industry chain and the economic development of the region. In particular, the industrial parks established in the surrounding areas with support from PetroChina Daqing Petrochemical have seen rapid development, accelerating the pace of Xinjiang’s new industrialization. Currently, PetroChina’s Dushanzi Branch supplies one-third of Xinjiang’s refined oil needs and provides over 90% of the chemical raw materials for the region’s plastics and rubber industries. Dushanzi Petrochemical implements three major strategies—“resources, talent, and innovation”—to transform the advantages of Central Asia and Xinjiang’s oil and gas resources into economic benefits. It has cultivated three teams of professionals who excel in business management, possess profound technical expertise, and have advanced skills. The company has established three research and development centers focused on crude oil evaluation, synthetic resins, and rubber. To date, it has developed 46 new products; among them, metallocene film-grade polyethylene and environmentally friendly rubber products have filled gaps in domestic production. Currently, PetroDushanzi has an annual crude oil processing capacity of 10 million tons and an annual ethylene production capacity of 1.22 million tons. It can produce over 600 types of petrochemical products across 26 categories. This has led to the establishment of a pattern characterized by large-scale oil refining, ethylene production, and storage facilities. As a result, it has become a key strategic hub in western China for the import, storage, transportation, and processing of oil and gas. Leveraging the **Belt and Road Initiative**, Duhua Petrochemical plans to invest over 2 billion yuan to launch a project aimed at optimizing the processing of 1 million tons per year of light hydrocarbons into ethylene in Kazakhstan. Upon completion, the project will provide basic raw materials such as aromatics and chemical polymers, which are essential for expanding Xinjiang’s petrochemical industry chain ； The toluene and xylene produced will be supplied as raw materials to local enterprises and those in the surrounding area ； Efforts will be made to develop synthetic fibers in order to support the development of Xinjiang’s textile and apparel industry as proposed by the autonomous region, thereby integrating cotton textiles with synthetic fiber textiles and promoting local employment. ◆ Maoming Petrochemical successfully produced a new high-end polypropylene product. On September 21, Unit 2 for polypropylene production at Maoming Petrochemical overcame challenges such as the difficulty in controlling reactions when hydrogen is added, high melt index, and difficulties in granulation and pelletization, and successfully manufactured high-melting-point, high-transparency propylene-butylene copolymer polypropylene PPD-MT45-S. Approximately 500 tons of this product were produced for the first time. It is said that this product boasts advantages such as high transparency, good fluidity, short injection molding cycles, fast molding speed, low warpage, and excellent impact resistance. It is suitable for the rapid manufacturing of thin-walled transparent food containers, the injection molding of large or complex thin-walled parts, as well as DVD and CD packaging. ◆ The Materials and Logistics Department of Baling Petrochemicals took steps to break the monopoly on the procurement of these three types of chemicals. In mid-September, Baling Petrochemicals organized a meeting with managers from the Continuous Improvement Office, Production Management Department, Materials and Logistics Department, as well as relevant business units, to discuss how to work together to further break this monopoly on the procurement of these chemical products. In the company’s first selection of outstanding improvement projects, the project aimed at breaking the monopoly on the procurement of these three chemical agents won the \"Most Effective Promotion Award\". In 2014, the Material Loading Department of Baling Petrochemical identified a total of 24 types of chemical \"agents\" that were to be purchased exclusively. Leveraging the continuous improvement platform, functional departments and various business units work together to analyze the root causes, formulate 14 targeted improvement measures, implement action plans, and monitor their progress. By the end of last year, through methods such as introducing resources for trial evaluations, supplier assessments, comparisons with similar devices, local substitution, participation in headquarters tenders and corporate tenders, the company broke the monopoly on the procurement of 15 types of materials, thereby effectively reducing procurement costs. In particular, for the procurement of scale inhibitor for crude oil slurry under the headquarters’ centralized procurement framework, they brought in two suppliers; as a result, the price per ton dropped from 19,100 yuan to 15,900 yuan, resulting in cost savings of over 2.4 million yuan in total. At the beginning of this year, the Material Loading Department of Baling Petrochemicals made it a key task for the year to tackle the challenge of securing exclusive procurement rights for the remaining 9 types of \"three agents\", working together to overcome this difficulty. For exclusive supply products that arise due to technical barriers, they combine the efforts of the technology center and other suppliers to first conduct a breakdown analysis of the components, and then carry out preliminary research and development tests. For varieties that have trial resources but involve high risks in operation, the relevant business units prepare trial plans, while the company’s specialized departments conduct risk assessments regarding safety, environmental protection, and quality; trials are organized only after it is confirmed that the conditions are suitable. They also established a communication group to break through the monopoly on the procurement of the “three doses,” ensuring that each task has a set deadline, a monitoring mechanism, and a platform for resolving issues. To date, 4 varieties have completed industrial trials. ◆ New additives for Wuhan Ethylene help improve energy efficiency and productivity. After nearly two months of tuning, the new composite additives used in the LLDPE unit of Wuhan Ethylene’s polyolefins division meet the production requirements, thereby helping to enhance the unit’s energy efficiency and productivity. The additive unit of the LLDPE plant is equipped with four additive feeders, which mix the additives before feeding them into the extrusion granulator. Due to friction during the mixing process and heat generation from granulation, coupled with the small diameter of the feeding pipelines, blockages easily occur under hot weather and high production loads. Removing and cleaning the pipes is time-consuming and labor-intensive; if multiple pipes become blocked, it can also lead to a disruption in the supply of additives, affecting product quality. To this end, the device replaced the previously used antioxidant 168 and premix NCP-9 with a new type of composite additive; only one supplier is required to supply it, and the products manufactured exhibit good performance, with acceptable levels of granulated powder, process parameters, and product quality. The use of the new composite additive significantly reduced the impact of additive interruptions on product quality. If the feeding system experiences fluctuations, variations in the ratio of additives can also affect product quality; the new composite additives successfully avoid this problem. At the same time, reducing the number of suppliers lowers procurement costs and simplifies the addition process, achieving multiple benefits at once. ◆ Jingmen Petrochemical overcomes production constraints to manufacture jet fuel at increased capacity. Recently, after technical upgrades and optimizations were carried out on the hydrogen-decolorization unit for producing jet fuel at Jingmen Petrochemical, the unit was able to operate at an increased capacity, with the output of jet fuel remaining stable at 38 tons per hour. It is reported that the designed processing capacity of this unit is 35 tons per hour; due to organic impurities in the raw materials, the differential pressure across the raw material filter increases rapidly, making it difficult for the unit to increase its production volume. Furthermore, frequent removal and purging of the filter can also lead to scaling in the heat exchanger and a rapid increase in the pressure difference across the catalyst bed, thereby affecting the long-term operation of the plant. To overcome this production bottleneck, Jingmen Petrochemical carefully organized efforts to address the issue. Through scientific calculations and repeated tests, by adding another raw material filter and replacing an existing high-head raw material pump, the plant’s processing capacity was increased to 38 tons per hour, thereby meeting the production and supply demands of the regional market effectively. In addition, Jingmen Petrochemical has also optimized process parameters by working on the technical aspects of units such as plant filters, heating furnaces, and dechlorination reactors, ensuring that both the quality rate of aviation kerosene upon leaving the factory and the pass rate in inspections conducted by higher authorities remain at 100%. ◆ Optimized control of Guangzhou Petrochemical’s No. 2 coking unit leads to energy savings and increased efficiency. By the end of August, thanks to this optimized control, the gasoline yield of the unit increased from 4.712% to 5.62%, while the diesel yield decreased from 3.44% to 2.846%; this results in annual savings of over 3 million yuan ； The energy consumption of the wastewater stripping unit decreased by 2.116 kg of standard oil per ton, resulting in energy savings of 2.2 million yuan. To address the issue of significant fluctuations in the controlled variables or controller outputs, caused by unreasonable settings for certain control parameters and controller types within the plant, which hindered its stable operation, since the beginning of this year, the Information Management Center of Guangzhou Petrochemical, together with engineers from Beijing University of Chemical Technology, conducted on-site investigations of the plant. Based on these findings, they carried out work to adjust the PID parameters and optimize the control system. Technicians readjust the controller parameters and optimize control performance, using advanced control algorithms such as prediction and internal model control to adjust the PID parameters and improve the control effect on the controlled system. By optimizing the adjustment process, they reduce the frequency and amplitude of the actions of the control valves. After the implementation of control optimization, the operation of the device became more stable, with an automatic control rate of over 98%. “Without carrying out updates or major repairs to the equipment, optimization of control not only increased the yield of gasoline and reduced energy consumption, but also improved the utilization rate of the APC controller. ”Liu Shan, the process supervisor of the facility, is very satisfied with the results of the control optimization. Coking Unit 2 is the 17th unit at Guangzhou Petrochemical to undergo PID tuning and optimal control since 2012. ◆ A water injection system from Huabei Oilfield fills a gap in China. Recently, an “online energy efficiency analysis software system for water injection stations” that was developed independently by Huabei Oilfield and holds independent intellectual property rights – and combines functions such as management of water injection production databases, calculation of efficiency for surface facilities, wells, and reservoirs, as well as condition diagnosis and optimization analysis – was successfully implemented in seven water injection systems, including those at Menggolin Oilfield, Baolige Oilfield, and the Jin93 block. This system fills a gap in this technical field in China. The system consists of software and hardware. This online software features real-time monitoring of water injection production data, calculation of surface, wellbore, and reservoir efficiencies, generation of energy efficiency reports, and alarm functions. It not only enables real-time analysis of changes in system energy consumption but also boasts robust data management capabilities, providing extensive historical data to support in-depth analysis of big data related to injection and production systems. For example, by applying this technology to optimize the design of the three water injection networks in Mongolia’s forestry water injection system, the energy consumption per cubic meter of water injected was reduced by 1.12 kilowatt-hours; this resulted in an annual savings of 1.75 million kilowatt-hours of electricity, with direct economic benefits amounting to 1.4 million yuan. The North China Oilfield currently has 124 water injection stations, with an annual water injection volume of 34 million cubic meters and annual electricity consumption of 240 million kWh. Tests have shown that some of these water injection systems operate in an inefficient and energy-intensive manner, indicating significant potential for energy savings. ◆ The flue gas denitrification system at Daqing Refining & Chemical has been put into operation. The flue gas denitrification system for the company’s 1.8 million tons/year ARGG unit has been successfully commissioned; the nitrogen oxide content in the emitted flue gas is below 240 mg/m³, meeting the **specified standards. In the past, in order to reduce the level of nitrogen oxides in the flue gas emitted by the 1.8 million tons per year ARGG plant, catalysts were added to the system to remove these nitrogen oxides. This approach not only increased the operating costs of the plant but also heightened the workload for the employees. In response to this situation, the company undertook a denitrification retrofit for its 1.8 million tons/year ARGG unit. Construction began in June this year. The project utilizes selective catalytic reduction (SCR) technology, with liquid ammonia having a purity of no less than 99.5% serving as the reducing agent. An external SCR denitrification process is employed to purify the flue gas; no intermediate products or by-products are generated in this process. After treatment, the flue gas is directly released into the atmosphere. Based on the original waste heat boiler, the system incorporates three additional reaction beds. The nitrogen oxides in the flue gas react with the denitrification catalysts on these beds, ultimately being converted into nitrogen and water, thereby reducing the concentration of nitrogen oxides in the flue gas. The renovation of the remaining boiler was completed on August 25, ensuring that the remaining boiler system could start operating simultaneously with the second set of ARGG units. To date, the flue gas denitration system of the unit has achieved the expected results. ◆ The upgrade project to bring Jilin Petrochemical’s gasoline to National V standard has been completed. On September 15, this upgrade was successfully finished, and as a result, the gasoline and diesel produced by the company now meet the National V standards. The total investment in Jilin Petrochemical’s National V upgrade project for gasoline is 160 million yuan. Construction officially commenced on March 30, with the project covering a total area of 15,621 square meters. The newly built unit utilizes the Prime G+ process developed by France’s Axens company. Using catalytic gasoline as raw material, it performs two-stage hydrodesulfurization on heavy gasoline with a high sulfur content, thereby producing National V-standard gasoline. According to Zhang Tianyu, the person in charge of the project’s infrastructure, since the newly built unit is located close to the existing National IV gasoline hydroprocessing unit, it is necessary to ensure the smooth operation of the existing unit while carrying out construction work. To accelerate the project construction process, Jilin Petrochemical has implemented a variety of effective measures to ensure proper safety measures during construction, adequate supervision, and strict control over each construction phase. At present, the company is working swiftly to address the issues identified through the “three inspections and four determinations” process. A dedicated team has been established to prepare actively for the commissioning of the new installation, with the project expected to go into operation in mid-October.