Sinochem Quanzhou Petrochemical’s Four-Pronged Strategy for Transformation and Upgrading: Use domestic equipment whenever possible instead of importing it

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Sinochem Quanzhou Petrochemical’s Four-Pronged Strategy for Transformation and Upgrading: Prefer domestic equipment over imported ones. Petroleum and Chemicals Forum: \"It is no exaggeration to say that Sinochem Quanzhou Petrochemical has become a leading refinery in China and among the best in the world.\" ”In yesterday’s interview, Wang Yucui, the 79-year-old former deputy chief engineer at SEI who has dedicated half of her life to the oil refining industry, told the reporters. In the face of the severe challenges posed by the cyclical downturns in the oil and gas industry, Sinochem Group, one of China’s four major **oil companies**, has seen no weakness in its energy business. Data shows that in 2015, the energy business of Sinochem Group in China achieved an annual turnover of 140 million tons. “Sinochem Quanzhou Petrochemical’s 12 million tons per year oil refining project is a key project under Sinochem Group’s 12th Five-Year Plan; its development process reflects the group’s ongoing efforts to improve quality and efficiency, as well as its proactive pursuit of transformation and upgrading. ” Zhang Qiang, general manager of Sinochem Quanzhou Petrochemical, said that by facilitating the domestic production of a range of high-end equipment such as the 4M150 new hydrogen compressor for residue hydrogenation, by continuously improving the quality of gasoline and diesel products, and by advancing the technological processes for other chemical products like triphenyls and polypropylene, Sinochem Quanzhou Petrochemical has successfully achieved corporate transformation and upgrading. It has reached international leading levels in seven areas: safety and environmental protection, energy consumption, product quality, plant scale, process routes, technological processes, and market adaptability regarding the ratio of diesel to gasoline. Equipment upgrading: from nothing to something, from good to better. The level of development in the equipment manufacturing industry is an important indicator of a country’s or region’s degree of industrialization and international competitiveness. Looking back, in the past, foreign multinational companies dominated the market for high-end petrochemical equipment; their products came at exorbitant prices and with long delivery times, causing great difficulties for domestic refining and chemical enterprises. “The refining and chemical industry and the equipment manufacturing industry are interdependent; if domestic equipment cannot be strengthened and expanded, it will ultimately hinder the development of China’s refining and chemical industry. ”To break through this barrier, Sinochem Group adheres to the principle of \"using domestic equipment whenever possible instead of importing it,\" and actively engages in collaborative efforts for application integration and innovation, thereby driving forward the localization of high-end energy equipment in China. Refineries with a capacity of tens of millions of tons must use 150 series reciprocating compressors. In recent years, as there are no domestic products that meet the requirements, compressors of this level used in China must be imported from abroad, which has hindered the development of China’s refining and chemical industry. “Against this backdrop, it is imperative to promote the localization of the new 4M150 hydrogen compressor. ”Zhang Qiang said that after thorough research and evaluation, Quanzhou Petrochemical decided to cooperate with Shenmu Group, a leading domestic enterprise in petrochemical equipment, and took on the task of producing China’s first 4M150 new hydrogen compressor, thus being the first to utilize this high-end equipment in the country. According to Yu Xiaokun, the design manager of the Reciprocating Machinery Division at SHENGU Group, after three years of development, the domestically produced 4M150 new hydrogen compression unit was successfully tested in a residue hydrogenation plant in May 2014. It passed the domesticization evaluation conducted by the China National Machinery Industry Federation in September 2015. The evaluation experts unanimously agreed that this project filled a gap in domestic technology, with all its performance indicators reaching international advanced levels. Yu Xiaokun said that the successful development of the 4M150 new hydrogen compressor unit is of epoch-making significance; it not only breaks the monopoly held by foreign companies over this type of unit but also overcomes the price constraints associated with imported units, which is of great importance for petrochemical companies in reducing their operational costs. The 8600kw increased-safety type synchronous motor is China’s first synchronous motor of this type with the largest single-unit capacity, developed and produced in accordance with the requirements of the 2010 version of the new standards. Photo by Gao Yining, a reporter from China National Radio. At the Sinopec Quanzhou Petrochemical Plant, the reporter saw that, in addition to the 4M150 new hydrogen compression unit, high-end equipment that was previously dependent on imports or for which there were no precedents for use in China’s petrochemical industry – such as the high-pressure water pumps used for coking treatment, the high-pressure threaded locking ring heat exchangers in the wax oil hydrocracking units, and the 8600kw increased-safety type synchronous motor – has now seen its first domestic production, and these devices are in use at the Quanzhou Petrochemical Plant. Fuel upgrade: 92-octane gasoline for vehicles now meets the standards of National VI gasoline. “Sinochem’s gasoline is highly effective, providing strong power.” Adding a tank of fuel with the same capacity allows for driving dozens of kilometers more than with oils from other brands. ”Kang, a driver for Minxing Tourist Transport who is a regular customer at Sinochem gas stations, speaks highly of the quality of Sinochem’s fuel. Oil product upgrading is not only an important part of the \"Made in China 2025\" strategy but also a necessary requirement driven by rising automotive emission standards. Zhang Qiang told reporters that as a newly built advanced refinery, Sinochem Quanzhou Petrochemical’s monthly production of gasoline and diesel for use in vehicles exceeds 400,000 tons. The quality of these fuels is excellent and stable; they have already met the National V standards, which were set to be implemented nationwide on January 1, 2017, two years ahead of schedule. These fuels are also exported to regions with the strictest quality requirements, such as Europe and Australia. According to Zhang Qiang, at a time when the standards for National VI gasoline are still under consultation, Sinochem Quanzhou Petrochemical already has the capability to produce National VI 92-grade gasoline. In particular, regarding the key parameter of olefin content, while most refineries still face difficulties in keeping this level below 18%, Sinochem Quanzhou Petrochemical has managed to keep it below 8%. “Advanced processing techniques are the foundation for ensuring product quality. ”Zhang Qiang told reporters that Sinochem Quanzhou Petrochemical uses an advanced processing scheme in the industry, which involves \"residue hydrogenation + delayed coking + catalytic cracking\", with the main units employing top-tier technologies from both domestic and international sources. For the process technologies used in various units, those that have reached international advanced levels in China are adopted, such as catalytic cracking units and atmospheric and vacuum distillation units. Where domestic capabilities fall short of world-class standards, advanced foreign technologies are adopted; for instance, units for residue hydrogenation, hydrocracking, and continuous reforming incorporate the most cutting-edge technologies available internationally. In the control room of Sinochem Quanzhou Petrochemical, staff monitor production operations by clicking the mouse in front of the large screen. Han Bing, deputy director of the General Office of Sinochem Group, told reporters that refineries of a similar scale in China require more than 3,000 workers, while Sinochem Quanzhou Petrochemical has only over 1,000 workers, thanks to its high level of automation. The accuracy of analyzed data is an important factor affecting product quality. As the \"eyes\" of the refinery, the Quanzhou Petrochemical Quality Inspection Center is responsible for conducting material analysis throughout the production process, providing a basis for making precise adjustments in production. A responsible official from the quality inspection center explained that in order to ensure the rapid and accurate provision of analysis data, the main testing instruments used by the center are all from top international and domestic brands, featuring advanced technology and a high degree of automation ； Nearly 400 standards are used, all of which are verified prior to use; it is ensured that personnel are trained, and that the instruments, equipment, and operating environment meet the required standards. Environmental improvement: \"No fumes in the air, no oil on the ground.\" Birds are extremely sensitive to their environment. Inside the Sinochem Quanzhou Petrochemical plant, a few egrets can be seen resting from time to time. In July 2016, Sinochem Quanzhou Petrochemical was awarded the title of Advanced Unit in Environmental Protection within the national petroleum and chemical industry during the 12th Five-Year Plan period. “It is quite difficult for petrochemical companies to win awards in the field of environmental protection. ”Wang Yucui told reporters that Sinochem Quanzhou Petrochemical has always been a practitioner of the concept of green development. The groundwater recovered on site by the staff was clear in quality, in sharp contrast to the polluted water before treatment. Photo by Gao Yining, reporter from China Radio Network. Wang Yucui gave examples to the reporters, highlighting the significant challenges that leak prevention poses to the oil refining industry: since polluted oil is often transported through underground pipelines, corrosion of these pipelines over time can lead to leaks, which easily contaminate the groundwater system. “During the construction phase of the Quanzhou petrochemical project, **environmental protection requirements were strictly followed; significant investment was made in implementing leak prevention measures, and many underground pipelines were raised to the surface. After being lifted to the ground, regular inspections are carried out between the pipelines. In addition, pipelines that must be buried underground have been fitted with special anti-seepage measures to ensure that groundwater quality is not polluted. ”Wang Yucui explained that to prevent harmful substances from seeping into the ground and contaminating groundwater, the entire leakage prevention project at Sinochem Quanzhou Petrochemical cost nearly 300 million yuan. It is understood that in terms of wastewater treatment, Sinochem Quanzhou Petrochemical follows the principles of \"separating clean water from polluted water, separating rainwater from sewage, separating different types of pollutants from each other, and carrying out treatment based on the different qualities of wastewater.\" A comprehensive drainage system has been established throughout the plant to enable the classified treatment and controlled management of wastewater generated by various units and facilities. Throughout 2015, the total COD emissions amounted to 28.51 tons per year, while the total ammonia nitrogen emissions were 1.72 tons per year. The rate of wastewater reuse exceeded 76%, which is at a leading level in the industry ； In terms of waste gas treatment, Quanzhou Petrochemical employs various treatment methods such as desulfurization, denitrification, and dust removal to handle the various types of waste gases generated during the production process. In 2015, the overall desulfurization rate was greater than 99.25%, the denitration rate was over 80%, the overall dust removal rate reached 99.94%, and the smoke and dust emission concentration was well below 30 mg/Nm3. All indicators are far superior to the current **standards, achieving the goal of ‘no gas escaping into the atmosphere and no oil leaking to the ground’. Service upgrade: At Sinopec gas stations, you can not only have your car cleaned, but also your glasses cleaned. As private car owners, in addition to seeking good quality and convenience, we also expect to have some additional value-added services. ”That’s what Shu Chang, a customer who was refueling her car at the Anlu gas station in Sinopec’s oil field, told the reporter. “Sinochem provides excellent service; every time they come, they ask me if I need my windows cleaned. Such additional services are unique to them. ”Shuchang told the reporter that in addition to free car washing, Sinochem gas stations also offer convenient services such as a convenience store, rest areas, and tire inflation. “At Sinopec gas stations, you can also have your glasses cleaned and your leather shoes polished. ”Shuchang introduced. Inside the convenience store at the Tianan Road gas station, a wide range of items is available, including food, daily necessities, car supplies, and toys. Yang Zikun, manager of Sinopec’s Quanzhou branch, told reporters that unlike other gas stations, Sinopec places more emphasis on diversified business models such as convenience stores; these stores also sell high-quality products produced by the Sinopec Group, such as the Sanjiang Hanxiang Rice from Sinopec Agriculture. More importantly, the large number of convenience stores brings great convenience to their owners. Yang Zikun explained that the convenience store at the Tianan Road gas station can generate daily sales of up to 5,000 yuan, and without any promotional activities, its annual sales can reach around 2 million yuan.