• ASIACHEM’S data shows that, China has built oil refining capacity of about 770Mt/a, and 26 oil refining bases of 10Mt/a level;
• In 2018-2022, several refining & chemical integration (RCI) projects will be built and commissioned in 7 main petrochemical bases. Changxing Island is one of them;
• The 3rd China Refining & Chemical Integration Conference will be held on Jun 27-28 in Dalian, and several RCI project owners will be present, to exchange project progress & planning Consideration.
China is a large country in oil refining, with total capacity of 771.5Mt/a, and 26 oil refining bases of 10Mt/a level. During 13th FYP, China is orderly advancing the construction of Seven Main Petrochemical Bases, namely, Changxing Island (Xizhong Island) in Dalian, Caofeidian in Hebei, Lianyungang in Jiangsu, Caojing in Shanghai, Ningbo Zhenhai (Zhoushan) in Zhejiang, Gulei in Fujian, and Huizhou in Guangdong, which will promote the development of China’s oil refining industry in direction of large-scale unit, refining & chemical integration (RCI), and industry clustering.
Source: < Projects Outlook: China Refining & Chemical Integration Annual Report 2018>
China is entering into the peak period of RCI projects construction, and private enterprises become the main force of RCI projects, in order to expand their industrial chain to upstream. Hengli 20Mt/a RCI project and ZPC RCI project plan to be put into operation in 2018; Shenghong 16Mt/a RCI project and Xuyang Petrochemical 15Mt/a RCI project has been approved by Provincial Development and Reform Commission; RCI projects invested by Jinjiang Petrochemical, Xinhua Lianhe Petrochemical, Qianhai Petrochemical, and so on, have signed…
----Hengli 20 Mt/a RCI Project
Located in Changxing Island Petrochemical Industrial Base in Dalian, the project of total investment of CNY 56.2bn, is designed with crude oil processing capacity of 20Mt/a and aromatic complex unit nominal scale of 4.5Mt/a (based on PX), to process Saudi heavy oil, Saudi medium oil, Marine crude, and use full hydrogenation process route of atmospheric-vacuum distillation + hydrocracking + aromatics, with hydrogenation capacity of 23Mt/a. Product scheme of the project includes 4.34Mt/a PX, 970kt/a pure benzene, 4.61Mt/a gasoline, 1.61Mt/a diesel, 3.71Mt/a aviation kerosene, 1.63Mt/a chemical light oil, etc.
The project is under construction now, and plans to finish installation in Jul 2018, and to be put into operation in Oct.
----ZPC 40Mt/a RCI Project
The project is located in Zhoushan Green Petrochemical Base, with capital investment of CNY 173.08bn, to build total capacity of 40Mt/a oil refining, 8Mt/a PX, 2.8Mt/a ethylene in two phases.
Phase I of the project, with investment of CNY 90.16bn, plans to build 20Mt/a oil refining + 5.2 Mt/a aromatics + 1.4Mt/a ethylene. The oil refining part uses core process flow of “residuum hydrodesulfurization / RFCC + hydrocracking + coking”, while aromatics part uses world-class reforming + PX units, with 1.4Mt/a ethylene unit. Phase I of the project is under construction now, and plans to be put into operation by the end of 2018.
Scheme of Phase II is to make maximum of production of ethylene and downstream products, which plans to build 20Mt/a oil refining + 5.2Mt/a aromatics + 1.4Mt/a ethylene, and to be put into operation in Q1 2021.
----Shenghong 16Mt/a RCI Project
The project is located in Lianyungang Petrochemical Industrial Base, with total investment of CNY 77.65bn, to build 16Mt/a oil refining, 2.8Mt/a PX, 1.1Mt/a ethylene. The project plans to process Saudi light oil, Saudi heavy oil, and use the general process flow scheme of crude oil processing + heavy oil hydrocracking + PX + ethylene cracking + IGCC.
In Sep 2017, the project was approved by Jiangsu Provincial Development & Reform Commission.
----Risun Petrochemical 15Mt/a RCI Project
Located in Caofeidian Petrochemical Industrial Base, the project of total investment of CNY 25.94bn, plans to build production units including 15Mt/a atmospheric-vacuum distillation, 2Mt/a aromatics complex, etc. The project will use Kuwait crude oil and Saudi light oil as raw material, and use mature technologies of “atmospheric-vacuum distillation + residuum upgrading + wax oil hydrocracking + aromatics + isomerization” and process route with high value-added products. In Sep 2017, the project was approved by Hebei Provincial Development & Reform Commission.
In Oct 2017, three party memorandum of cooperation was signed between Sinochem, Risun, and Government of Caofeidian District, which plans to build the 15Mt/a RCI project in three phases, including 15Mt/a oil refining, 2Mt/a PX, 1.2Mt/a ethylene and supporting facilities, with total investment of CNY 55.8bn.
----Jinjiang Petrochemical Aromatics & Olefins Integration Project
The project is located in Gulei Petrochemical Industrial Bases, plans to invest about CNY 60bn, and use world-class 10Mt/a crude oil processing technology, with 2.6Mt/a PX and 1.5Mt/a ethylene, but without oil products such as gasoline, diesel and kerosene.
In Dec 2016, contract signing of the project was undertaken; in Nov 2017, scheme demonstration meeting for the project was held.
----Xinhua Lianhe Petrochemical 20Mt/a RCI Project
Located in Caofeidian Petrochemical Industrial Base, the project with investment of about CNY 60bn, plans to build the total capacity of 20Mt/a oil refining, 5.57Mt/a aromatics, and 800kt/a PP.
In Mar 2017, contract signing of the project was undertaken; in May 2017, EIA of the project was publicity online for 1st time.
----Qianhai Petrochemical 15Mt/a RCI Project
The project with predicted investment of CNY 40bn, plans to be built in Caofeidian Petrochemical Industrial Base, with total capacity of 15Mt/a oil refining, 3Mt/a PX. Contract signing of the project was undertaken in 2015.
In the future, several world-class RCI projects dominated by private enterprises will be built and put in operation, which will improve the scale and competitiveness of China’s refining & chemical industry, promote industrial transformation & upgrading and change from large to strong, as well as expand the industry development space. Besides, RCI projects construction will also improve the situation of large import and high external dependence for basic chemical commodities such as PX, ethylene, etc., as well as high-end petrochemical products, increase the power of discourse in the industry.
The 3rd China Refining & Chemical Integration Conference 2018 organized by ASIACHEM will be held on Jun 27-28 in Dalian. Several large scale RCI projects owners will be present, to exchange project progress & planning consideration.
RCI projects owners confirmed to attend and under inviting include:
Zhejiang Petrochemical Co Ltd (ZPC) / Rongsheng Petrochemical
Shenghong Refining & Chemical (Lianyungang) Co Ltd
Zhejiang Hengyi Group Co Ltd
Fujian Jinjiang Petrochemical Co Ltd / Eversun Holdings Group
Tangshan Risun Petrochemical Co Ltd
China North Industries Group Co Ltd / North Huajin Chemical Industries Group
Shandong Local Refineries