MOSCOW (MRC) -- China Petrochemical Corp, or Sinopec, said on Monday it started building a carbon capture, utilization and storage (CCUS) project in east China, the largest of its kind in the country, as part of the refiner's goal to be carbon-neutral by 2050, reported Reuters.
The Asian company has been planning to cap its carbon emissions at peak levels prior to a national timeline set by the government for 2030, both through its work to increase hydrogen output and the treatment and capture of carbon dioxide. read more
The CCUS project involves capturing carbon dioxide produced from a Sinopec's Qilu refinery in eastern Shandong province during a hydrogen-making process, and then injecting it into 73 oil wells in nearby Shengli oilfield, Sinopec said in a statement.
At a purified rate of more than 99%, carbon dioxide can be mixed with crude oil and help generate higher oil production.
Sinopec estimated that 10.68 million tons of carbon dioxide would be injected into the oilfield over the next 15 years and boost crude oil production by nearly 3 million tons.
The project is scheduled to start operations at the end of this year, Sinopec said, adding that it plans to build similar projects in neighboring Jiangsu province, by capturing and utilizing carbon dioxide from refinery and petrochemical plants there and using them to boost oil output at its Huadong and Jiangsu oilfields.
The state oil and gas producer said it would explore setting up a CCUS research and development center, but did not provide financial details about these investments.
As MRC wrote before, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have recently entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
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.
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