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Henglis high-tech petroleum complex breathes down PetroChinas neck

September 12/2018

MOSCOW (MRC) -- On reclaimed land on the island of Changxin near the port of Dalian, workers are putting the finishing touches on a plant that is the future of Chinaís refining and petrochemical industry, as per Hydrocarbonprocessing.

Here, private chemical company Hengli Group will begin testing its USD11 billion oil refinery and petrochemical complex in October.

The plant is a direct challenge to China National Petroleum Corpís (CNPC) Dalian Petrochemical Corp facility, the countryís second-largest oil refinery. That 70-year-old plant has been a cash cow for state-owned CNPC but the aging refinery has come under scrutiny after several accidents.

Hengliís high-tech complex will not only produce the fuels China craves but also the plastics and other chemicals the country will need for the future.

China plans to add a dozen petrochemical mega-complexes along its east coast over the next five years, in the biggest wave of expansion in its history.

The plants will be backed by state majors Sinopec and Sinochem, private groups Shenghong Petrochemical and Wanhua Chemical, as well as Exxon Mobil and Germanyís BASF.

ďUnder a more liberalized policy, more independent and foreign companies will join the investment that will make China more self-sufficient in chemicals,Ē said William Chen, chemicals analyst at IHS Markit.

CNPCís listed arm PetroChina Co, which operates Dalian, has become one of the worldís most valuable oil firms by providing the gasoline and diesel to power Chinaís expanding private car fleet and the freight trucks underpinning its expanding commerce.

But Dalian may become a symbol of the past as competitors such as Hengli feed the demand of the worldís biggest petrochemical consumer.

Chinaís demand for diesel will likely peak by 2020 and gasoline by around 2035, according to IHS Markit.

However, the countryís demand for ethylene, a building block for plastics and polyesters, will rise to 26.8 million tonnes by 2020, from 18.7 million tonnes in 2015. Hengliís sprawling complex is geared to meet that demand and reduce imports.

As MRC informed earlier, Hengli Group received its first cargo of Saudi crude oil by July as it prepares a new refinery for trial runs to be held in October.


mrcplast.com
Author:Anna Larionova
Tags:petrochemistry, Crude oil, Hengli Petrochemical, China.
Category:General News
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