【Petrochemical Connections】Watch the intense competition among the giant integrated petrochemical projects of Sinopec Refining & Chemical, Shenghong Petrochemical, and Zhejiang Petrochemical!

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I. Sinopec-Kuwait Joint Venture Guangdong Petrochemical Integration Project
1. Basic Information
The Sinopec-Kuwait Petrochemical Project is currently the largest joint venture petrochemical project in China. It is jointly developed by China Petroleum & Chemical Corporation (00386.HK, hereinafter referred to as Sinopec Corp.) and Kuwait ** Petroleum Company Limited, with each party holding a 50% stake. The project is located in the Donghai Island New Area of Zhanjiang Economic and Technological Development Zone in Guangdong, covering a total land area of approximately 12.26 square kilometers, of which the first phase occupies about half of this area, amounting to 6.33 square kilometers. The project will adopt a circular economy model, making use of advanced international and domestic production processes as well as pollution control technologies. It will be designed and managed in strict accordance with the highest international environmental protection standards, aiming to turn this project into a landmark and exemplary facility for China’s petrochemical industry, as well as a **-level circular economy demonstration zone. In addition, the design for the first phase of the project includes refining facilities with a capacity of 10 million tons per year and ethylene production units with a capacity of 800,000 tons per year, along with various supporting infrastructure. The refining part is scheduled to be completed and put into operation by the end of 2019, while the chemical processing part is expected to be operational by the beginning of 2020. Once completed, these facilities will primarily produce products such as National VI gasoline, diesel, aviation kerosene, and polyethylene. On August 29, Sinopec announced that it would build four world-class refining and petrochemical complexes in Shanghai, Zhenhai, Maozhan, and Nanjing, in order to accelerate the development of its refining business through the establishment of such complexes and to leverage its technical advantages. As the first world-class refining and chemical complex built by Sinopec during the 13th Five-Year Plan period, the Maozhan Refining and Chemical Complex consists of three main parts: Maoming Petrochemical, the CAS project, and Zhanjiang Dongxing. Among them, Maoming Petrochemical and Zhanjiang Dongxing are the two main refineries in western Guangdong; the commencement of the Zhongke Petrochemical project represents the most important step in the development of the Maoming-Zhanjiang industrial complex. The total investment planned for this project is 59 billion yuan. In March 2011, the Sinochem Refining project passed the environmental impact assessment and received approval from the National Development and Reform Commission. In July 2016, Sinopec established a leadership team for the Maoming-Zhanjiang refining integration project to coordinate the allocation of resources and the development of refining activities in those regions. From November 29 to December 3, the Development Planning Department of Sinopec’s headquarters held a review meeting on the overall design in Zhanjiang. More than 40 experts from various fields across the country and within the group, along with over 200 representatives from design and construction companies, discussed and reviewed the details of the Sinochem Refining project, and approved its overall design plan. 2. Advantages of the project location: Donghai Island, where the Sinochem Refining project is located, is China’s fifth-largest island and the largest island in Guangdong Province. It has a land area of 286 square kilometers, and its current population is around 160,000 people. Donghai Island boasts abundant undeveloped land resources; it is an untapped virgin land with excellent conditions for building international deep-water ports and developing modern heavy industry. According to statistics, the advantages of the site selection for the Sinochem Refining and Chemicals project include the following 5 aspects: (1) It has deep-water shorelines suitable for building large oil tanker docks. Zhanjiang Port covers an area of 269 square kilometers and currently has 38 productive berths, 26 of which are capable of handling vessels over 10,000 tons in capacity. It boasts China’s largest 300,000-ton land-based crude oil terminal, the largest 250,000-ton iron ore terminal in South China, and the deepest 300,000-ton waterway in Asia. The project site is located to the north of Zhanjiang Port, with a coastline length of 3.05 kilometers. It is less than 500 meters away from the deep-water channel at a depth of -21.9 meters, making it suitable for the construction of a port capable of handling 300,000-ton oil tankers. (2) The pipeline transportation network of Zhanjiang Port can be fully utilized to **reduce transportation costs**. Zhanjiang has three existing pipeline transportation systems: the first is the crude oil pipeline from Zhanjiang to Maoshan, which is 115 kilometers long and has a transport capacity of 8 million tons per year ； The second is the Zhanjiang to Southwest refined oil pipeline, which is 1,740 kilometers long and has a transport capacity of 10 million tons per year ； Third is the Zhanjiang to Pearl River Delta refined oil pipeline, which is 1,135 kilometers long and has a transport capacity of 12 million tons per year. For the Zhongke Guangdong Integrated Petrochemical Project, only 42 kilometers of pipelines need to be laid to connect it to the petrochemical terminal and pipeline network at Zhanjiang Port. Through this network, refined oil products can be directly transported to the Pearl River Delta region and China’s southwestern areas. (3) Donghai Island has sufficient environmental carrying capacity. Zhanjiang City has the advantages of atmospheric environmental capacity and total emission control targets. Zhanjiang is surrounded by the sea on three sides, and Donghai Island is also encircled by the sea on all sides. The sea areas are vast, allowing for easy exchange with seawater from outside. Donghai Island has a high environmental carrying capacity for both its atmosphere and coastal waters, resulting in an excellent regional atmospheric environment ； According to the **Notice on Determining the Atmospheric Environmental Capacity of Key Cities for Air Pollution Control issued by the State Environmental Protection Administration on September 12, 2005 (Document No. Huan Ban [2005] 96), the environmental capacity for SO2 in Zhanjiang City was set at 102,000 tons per year. In 2008, the actual emissions in Zhanjiang were only 40,000 tons, indicating that there is sufficient environmental capacity to support large-scale petrochemical projects. The environmental impact assessment for the proposed site of the project in the Donghai Island New Area was approved by the **Ministry of Ecology and Environment on May 21, 2009; it explicitly states that an integrated oil refining and petrochemical project can be constructed in this area. (4) There is available industrial land for the project to use. The site for the Sinochem Refining and Chemicals project covers an area of 12.26 square kilometers, of which 8.7 square kilometers are land area and 3.56 square kilometers are beach reclamation area ； The land acquisition for terrestrial use has been largely completed, the relocation and resettlement process is progressing smoothly, the approval procedures for sea area use have been finalized, and all necessary land-use documents are in place, allowing the project to be put into use immediately. (5) The transportation conditions are excellent. The location of the Sinochem Refining and Chemicals project is within 30 kilometers of train stations, airports, and highways ； The under-construction Donghai Island Railway and the 60-meter-wide highway connecting Guangdong Haidao Road and Weilv Port run through the Donghai Island New Area, where the project is located. They connect to the Zhanjiang port access highway and the Yuzhan Expressway, as well as National Highways 325 and 207, and Provincial Highways 373 and 374, thus forming a modern highway network that surrounds Zhanjiang city area, Zhanjiang port area, and Donghai Island. 3. Equipment Overview: List of major equipment and units at Sinopec Guangdong Refining & Petrochemical Project
No. Unit Name Processing Capacity (10,000 tons/year)
1 Atmospheric and Vacuum Distillation 1,000
2 Continuous Catalytic Reforming 180
3 Hydrocracking 200
4 Fluid Catalytic Cracking 420
5 Kerosene Hydrotreating 160
6 Diesel Hydrotreating 200
7 Residue Hydrotreating 440
8 Gasoline Adsorptive Desulfurization (S-ZORB) 240
9 Alkylation 30
10 MTBE Production 20
11 Gas Fractionation 70
12 Light Hydrocarbon Recovery 200
13 Sulfur Recovery 39
14 Pressure Swing Adsorption (PSA) 80,000 Nm³/h
15 Liquefied Petroleum Gas Separation
16 Dry Gas Recovery
17 Acidic Water Stripping and Solvent Regeneration Unit
18 Storage and Transportation Tank Farm/Utility Facilities
19 Ethylene Production 80
20 Ethylene Oxide/Ethylene Glycol Production 25/40
21 High-Density Polyethylene Production 35
22 Polypropylene Production 30/20
23 Butadiene Extraction 9
24 Pyrolysis Gasoline Hydrotreating 30
25 Aromatic Hydrocarbon Extraction 20
26 EVA Production 10
27 Ethanolamine Production 5
28 Waste Alkali Treatment Unit
29 Packaging of Chemical Products/Tank Farm/Circulating Water System/Warehouses
30 Power Plant
31 Air Separation Unit
32 Coal-Based Hydrogen Production Unit

4. Latest Project Progress: On December 20, the Sinopec Guangdong Refining & Petrochemical Integration Project—the largest ongoing project by Sinopec and a key construction project in Guangdong Province—officially commenced construction. The project is located in the Donghai Island New Area of Zhanjiang Economic and Technological Development Zone in Guangdong, covering an area of 600 hectares. The first-phase project is designed to include oil refining facilities with a capacity of 10 million tons per year, ethylene production facilities with a capacity of 800,000 tons per year, as well as utility systems and supporting facilities such as storage and transportation tanks, cogeneration units, sewage treatment systems, docks, and railways. 19 major refining units such as atmospheric and vacuum distillation units and residue hydrodesulfurization units, as well as 10 chemical processing units including steam cracking units and high-density polyethylene production units, will be built. After nearly half a year of efforts, breakthrough progress has been made in the Sinochem Refining and Chemical Integration project; the feasibility study report, the general layout plan, and the overall design scheme have all been approved, and all procedures related to project approval and licensing have been fully completed. Upon completion of the project, it will primarily produce petroleum products such as gasoline, diesel, and aviation kerosene in the main producing countries, as well as chemical products including polyethylene, polypropylene, ethylene glycol, ethylene oxide, ethanolamine, butadiene, benzene, toluene, and mixed xylene. It is understood that the Sinopec refining and chemical project utilizes the most advanced production process control technologies available internationally. It is designed, constructed, and managed in accordance with the highest international standards for energy conservation and emission reduction. The goal is to create a world-class integrated refining and chemical complex, as well as a world-class petrochemical base characterized by safe operations, harmonious development, high technical standards, good economic performance, and strong environmental protection capabilities. This project represents Sinopec’s full commitment to developing the first world-class refining and chemical complex under the 13th Five-Year Plan. II. Shenghong Refining and Chemical Integration Project: A project with an annual production capacity of 1.5 million tons of purified terephthalic acid (PTA) 1. Basic information: Constructor: Shenghong Refining and Chemical (Lianyungang) Co., Ltd. Address: Room 706, Shenghong Petrochemical Office Building, Gangqian Avenue, Xuwei New Area, Lianyungang City. Environmental assessment agencies: Sinopec Luoyang Engineering Co., Ltd. and Nanjing Guohuan Environmental Technology Development Co., Ltd. Location of construction: Lianyungang Petrochemical Industry Base in Jiangsu Province and the Xuwei Port area of Lianyungang Port. Project investment: The total investment required for this project is 71.4 billion yuan, with a planned construction period of 36 months. The refinery units, utility systems, and supporting facilities of the project are designed for an operating hours of 8,400 hours per year, while the chemical processing units are considered for 8,000 hours per year of operation. The construction of this project will help meet Shenghong Group’s demand for the raw material PX. The PX demand of the PTA plant at Honggang Petrochemical, owned by Shenghong Group, amounts to 1 million tons per year; all of this PX has to be purchased from external suppliers, resulting in a high degree of dependence on outside sources and making it difficult to ensure a stable and reliable supply. The Shenghong refining and chemical integration project is primarily focused on the production of aromatic products. The PX produced is transported via pipelines to the PTA plant, thereby eliminating the environmental risks associated with transporting PX by road, saving energy, and maximizing the goals of clean production. The Shenghong Refining and Petrochemical Integration Project is designed based on an integrated processing model encompassing oil refining, aromatics production, and ethylene manufacturing. It adopts a overall process flow scheme involving crude oil processing, heavy oil hydrocracking, PX production, ethylene cracking, and IGCC, thereby optimizing the mutual supply of refinery and chemical raw materials as well as the configuration of utility systems. The project features large-scale facilities, including a vacuum distillation unit with a capacity of 16 million tons per year, a fluidized-bed residue hydrogenation unit with a capacity of 3.3 million tons per year, a wax oil hydrocracking unit with a capacity of 3.5 million tons per year, a diesel hydrocracking unit with a capacity of 3.6 million tons per year, an aromatic compounds complex unit with a capacity of 2.8 million tons per year, and a sulfur recovery unit with a capacity of 4.15 million tons per year. The total hydrogenation capacity of the project reaches 19.2 million tons per year, accounting for 120% of the 16 million tons of crude oil processed annually. The project includes land-based works, supporting port works, and associated projects. Onshore projects include refining units, aromatic compound complexes, chemical processing plants, IGCC facilities, storage and transportation systems, as well as the corresponding supporting utility facilities. The accompanying terminal facilities include crude oil berths, liquid chemical berths, and pipelines from the terminal to the storage area. The supporting projects include waterways, flood control dikes, coal terminals, coal transfer trestles, sewage treatment plants, tailwater discharge systems, and hazardous waste disposal. 2. List of project works. Note: The following content is excerpted from the “Full Public Notice on the Environmental Impact Assessment of the Shenghong Petrochemical Integration Project”. Double-click to view the image in larger size. 3. Layout of all facilities and process flow diagram. Note: The information below is taken from the “Full Public Disclosure of the Environmental Impact Assessment for the Shenghong Refining and Chemical Integration Project”; double-click to view the larger image. Click on the image to view the latest data on local refineries. III. Zhejiang Petrochemical’s 40 million tons per year integrated refining and chemical processing project 1. Basic information on the project: Zhejiang Petrochemical Co., Ltd. was established in June 2015, led by Rongsheng Holding Group, with joint investment from Zhejiang Juhua Group Company, Zhejiang Tongkun Holding Group Co., Ltd., and Zhoushan Marine Comprehensive Development Investment Co., Ltd. It is understood that Zhejiang Petrochemical Company has a registered capital of 1 billion yuan. Among this, Rongsheng Holding holds a 51% stake; Juhua Group and Tongkun Group each invest 200 million yuan, accounting for 20% respectively; and Zhoushan Ocean Comprehensive Development contributes 90 million yuan, representing a 9% stake. 2. Site Selection and Overview: The project is located in the Green Petrochemical Base in the reclamation area of Daxiaoyushan Island and Xiaoyushan Island in Zhoushan City. The developer is Zhejiang Petrochemical Co., Ltd., with Rongsheng Petrochemical being its holding company. The total capacity of the project is 40 million tons per year for refining, 10.4 million tons per year for aromatics, and 2.8 million tons per year for ethylene, with a total investment of around 160 billion yuan. Its main approach is to extend upstream to supply low-cost raw materials for the high-value aromatic chemicals industry. This project is a key initiative of the base; its implementation will help increase the scale and concentration of China’s petrochemical industry bases, facilitate the optimization and upgrading of related processing industries. It is of great significance for enhancing the competitiveness of China’s aromatic hydrocarbons and PTA-PET industries, ensuring industrial security, as well as strengthening the overall competitiveness and sustainable development of the petrochemical sector. Click to learn more in detail about the \"Environmental Impact Report for Zhejiang Petrochemical’s 40 million tons per year integrated refining and chemical project.\" 3. Main engineering components of the project: (1) Phase I The facilities in Phase I include 22 refining units with capacities of 20 million tons per year for atmospheric and vacuum distillation, 3 million tons per year for light hydrocarbon recovery, 3 million tons per year for coking, 5 million tons per year for residue hydrogenation, 3.8 million tons per year for wax oil hydrocracking, 8 million tons per year for diesel hydrocracking, 4.2 million tons per year for heavy oil catalytic cracking, 2 million tons per year for catalytic gasoline hydrogenation, 450,000 tons per year for light gasoline etherification, 1.5 million tons per year for jet fuel refining, 3.2 million tons per year for naphtha hydrogenation, 8 million tons per year for continuous reforming, 5.2 million tons per year for aromatics production, 900,000 tons per year for gas fractionation, 180,000 tons per year for MTBE production, and 450,000 tons per year for alkylation. The chemical processing area includes 15 chemical units with capacities of 1.4 million tons per year for ethylene production, 600,000 tons per year for propane dehydrogenation, and 450,000 tons per year for FDPE production. The first-phase oil refining and chemical project covers an area of 837.76 hm2, and is to be completed and put into operation within 48 months after the project application report is approved by **. (2) Phase II: The scale of the core units for refining, aromatics, and ethylene is the same as that in Phase I, including 22 refining units and 12 chemical processing units. The storage and transportation facilities associated with this project include tank farms, as well as equipment for the packaging, storage, and transportation of solid products ； Public and auxiliary facilities include water, electricity, and steam systems, air separation and air compression units, telecommunications, flare systems, office systems, and maintenance facilities ； Environmental protection projects include the treatment of \"three wastes\" and environmental emergency facilities, as well as environmental monitoring centers. The second-phase refining and petrochemical project and the development land cover an area of 762.60 hm2. The second-phase project will be launched at an appropriate time, taking into account the progress of the first phase, with a construction period of 48 months. (3) Project construction contents The project construction contents include the main structure, storage and transportation facilities, public and auxiliary production facilities, environmental protection measures, as well as supporting projects. The main project consists of refining and chemical processing units ； The supporting storage and transportation works include tank farms, packaging and storage facilities for solid products, etc ； The supporting utility and auxiliary production facilities include water, electricity, and steam systems, air separation and air compression units, telecommunications equipment, flare systems, office systems, and maintenance facilities ； Environmental protection projects include the treatment of \"three wastes\" and environmental emergency facilities, as well as environmental monitoring centers ； The supporting facilities include desalination plants, power centers, industrial solid waste disposal centers, sewage treatment plants, as well as port storage and transportation facilities, offshore crude oil pipelines, and onshore crude oil pipelines. (4) In terms of the types of oil to be processed, in Phase 1, the series is designed to process Saudi medium-grade crude and Iranian light crude in a ratio of 1:1, while Series 2 is designed to process Brazilian Frade crude and Iranian heavy crude in a ratio of 3:7; in Phase 2, it is all Saudi light crude and Saudi heavy crude, with a ratio of 1:1. (5) Refining section: The refining section of this project adopts a core overall process flow that includes atmospheric and vacuum distillation + delayed coking + residue hydrodesulfurization/heavy oil catalytic cracking + wax oil hydrocracking + diesel hydrocracking + continuous reforming/aromatics complex. All ethylene feedstock comes from refining units, with a focus on developing the downstream industrial chains for ethylene and propylene. Downstream products of ethylene include EO/EG, LLDPE/HDPE, HDPE, EVA, hexene-1, and styrene ； Downstream products of propylene include polypropylene, phenol propyl ether, bisphenol A, acrylonitrile, and MMA, etc.; propylene production is increased through propane dehydrogenation using purchased raw materials ； Mixed C4 is used to produce butadiene and MTBE ； The raffinate of mixed C4 hydrocarbons, ethylene hydrogenated gasoline, and by-produced hydrogen are sent to refining and aromatic units for processing. Through an integrated process arrangement for refining, chemicals, and aromatics, the raw materials used in various processes are optimized, thereby truly realizing integration of refining, aromatics, and ethylene production. Based on the information available, Shihua Yuan has compiled this content. If you need the complete environmental impact assessment reports for Shenghong Petrochemical and Zhejiang Petrochemical, please leave your email address at the end of the article. If there are any inaccuracies in the text, feel free to leave a comment to correct them. Compiled and published by Shihua Yuan; please indicate the source when reproducing!