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Sinopec expects to start Zhanjiang oil refinery at end of July

May 29/2020

MOSCOW (MRC) -- Chinas Sinopec Corp is expected to start commercial operations at its oil refining and petrochemical complex in Zhanjiang at the end of July, reproted Hydrocarbonprocessing with reference to a company spokesperson's statement.

The refinery is capable of processing 200,000 barrels per day (bpd) of crude oil and the petrochemical plant will produce 800,000 tonnes per year of ethylene. The project, with first phase investment of 40 billion yuan ($5.59 billion), is located in southern Chinas Guangdong province.

The refinery received its first crude oil cargo of 128,900 tonnes from a very large crude carrier (VLCC) that arrived at the plants 300,000-tonne capacity berth in early May, Sinopec said on May 9.

The Zhanjiang refinery is Sinopecs first capacity addition since the start up of the similar-sized Qingdao refinery on Chinas east coast in 2009.

The Zhanjiang plant is located about 60 km (37 miles) from Sinopecs 400,000-bpd Maoming refinery.

Sinopec also owns commercial crude oil storage tanks in Zhanjiang that serve as a delivery point for crude oil futures contracts traded on Chinas International Energy Exchange (INE).

The Guangdong provincial government aims to set up an oil refining and petrochemical industry base to shore up its economy. German chemical giant BASF is also building a USD10-billion integrated petrochemical project in Zhanjiang.

An Sinopec executive at the Zhanjiang refinery proposed during Chinas annual parliament conference, the National Peoples Congress (NPC), to include the Maoming-Zhanjiang base into the list of national-level petrochemical bases, according to a report on the proceedings released by the NPC on Monday.

Companies involved in the national petrochemical bases would be expected to receive preferential policies from the government on taxes and land purchases.

China has seven national-level petrochemical bases at Dalian in Liaoning province, Caofeidian in Hebei province, Lianyungang in Jiangsu province, Shanghai, Ningbo in Zhejiang province, Gulei in Fujian province and Huizhou in Guangdong.

As MRC informed earlier, in October 2019, Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), a 50-50 joint venture of Sinopec and SABIC, began construction on an ethylene expansion project in Tianjin Province, China. The project will boost the company's ethylene capacity to 1.3-million t/y from 1-million t/y currently. Cost and a schedule for the project were not given.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, LLDPE, crude and gaz condensate, PP block copolymer, homopolymer PP, propylene, LDPE, HDPE, ethylene, petrochemistry, Sabic, Sinopec, China, Rossiya.
Category:General News
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