Communicator

Aerial view of the Jiangyin Port City Economic Zone | Baidu, Feb 9, 2025

The Petrochemical Revolution: How Fujian Zhongjiang's Backward Integration Across the C₃ Value Chain Exemplifies Strategic Transformation in Global Petrochemicals

The global petrochemical industry is undergoing a fundamental transformation as companies across the plastic conversion sector embark on unprecedented backward integration strategies, fundamentally reshaping the traditional boundaries between refining, chemicals production, and downstream processing. This strategic shift represents more than incremental expansion; it signals a complete reimagining of how value chains operate in an era of supply chain volatility, margin compression, and the relentless pursuit of operational efficiency.

The Economics of Scale and Integration

The modern petrochemical landscape has become defined by the economics of mega-scale operations, where companies are discovering that vertical integration offers compelling advantages over traditional market-based transactions. Already, more than 30% of the world's refineries are now integrated with commodity petrochemicals, creating sites that benefit from both diversified product portfolios and enhanced operational synergies. This integration trend has been particularly pronounced in Asia, where approximately 70% of polypropylene plants by capacity are now integrated back to steam cracking or propane dehydrogenation sources of propylene.



Fuzhou Wanjing PDH3 began operation on May 15, 2025 | Shaanxi Chemical Construction, via oil.in-en.com

The financial rationale driving this integration is clear when examining the transaction cost economics that govern petrochemical operations. Companies are finding that the coordination efficiency gained through vertical integration significantly reduces the transaction costs associated with intermediary relationships, while simultaneously providing greater control over quality standards and supply chain reliability. The scale advantages are particularly evident in propane dehydrogenation operations, where single-unit capacities have expanded dramatically, with most recent facilities now reaching the impressive nameplate capacity of 900 thousand tonnes per year of propane.

China's Strategic Transformation and Global Implications

China's chemical industry expansion has become the defining force reshaping global petrochemical dynamics, with the country pursuing aggressive backward integration strategies that extend from plastic conversion all the way to crude oil refining. Chinese enterprises in the polyester value chain, including companies like Hengli, Shenghong, and Hengyi Petrochemical, have established massive refinery and integrated petrochemical complex projects that demonstrate the strategic imperative of securing upstream feedstock sources. This transformation is exemplified by companies that initially established themselves as textile manufacturers but have systematically integrated backward through purified terephthalic acid (PTA) production, paraxylene (PX) manufacturing, and ultimately into crude oil refining.



Ethylene production map centered on Eurasia | Source: portfolio planning PLUS

The scale of China's capacity expansion defies traditional market logic, with ethylene nameplate capacity increasing from approximately 26 million tonnes per year in 2019 to 54 million tonnes by 2024, more than doubling over the six-year period, with a further capacity increase expected to reach 66 million tonnes by 2025 according to industry estimates. China's ethylene and propylene capacity in 2025 is forecast to be 121% and 179% more than local demand respectively, creating structural oversupply that forces Chinese producers to seek international markets for their excess production. This capacity buildup has been facilitated by China's demonstrated ability to construct petrochemical facilities approximately 40% faster than international competitors, with paraxylene plants being completed in around 30 months compared to 48 months elsewhere, while also maintaining capital costs that are approximately 20% lower than the rest of Asia.

The Fujian Zhongjiang Model: From BOPP to Integrated Petrochemicals

The evolution of Fujian Zhongjiang Petrochemicals Group represents a paradigmatic case study in strategic backward integration within the C₃ value chain. The company's transformation from its origins as a biaxially oriented polypropylene film producer to a fully integrated propane-to-polypropylene operator demonstrates how specialized downstream companies can achieve remarkable operational synergies through systematic upstream expansion. Beginning as "the world's film king" in the BOPP sector, China Flexible Packaging Group recognized the vulnerability inherent in depending on volatile propylene markets and embarked on a methodical integration strategy that now spans from LPG import terminals through propane dehydrogenation to polypropylene production and finally to BOPP film manufacturing.



Fuzhou Propane Cryogenic Tank Storage | Seatao, May 29, 2023 

This integration model has enabled the company to achieve unique operational advantages, including circular hydrogen utilization where byproduct hydrogen from propane dehydrogenation fuels adjacent chemical units, reducing operational costs by approximately 15%. The company's current integrated structure encompasses:

• LPG import terminals with 1 million cubic meter storage capacity and an annual throughput capacity of 4 million tonnes
• Propane dehydrogenation plants with 2.5 million tonnes per year propylene capacity using Lummus CATOFIN and Honeywell UOP Oleflex technologies
• Polypropylene plants with 2.2 million tonnes per year capacity via LyondellBasell's Spheripol and SINOPEC ST-PP technologies
• BOPP film lines with 900,000 thousand tonnes per year capacity.

This level of integration allows the company to maintain 40% captive BOPP consumption while simultaneously supplying regional injection molding clusters, demonstrating how backward integration can create both supply security and market flexibility.

Technology and Process Innovation Driving Integration

The technological foundation enabling these massive integration projects has evolved significantly, with process innovations making large-scale operations both technically feasible and economically attractive. In polyethylene production, the latest advances exemplified by Univation's 800,000 tonnes per year UNIPOL PE Process and Chevron Phillips Chemical's MarTech single-loop slurry process deploying 1,000,000 tonnes per year HDPE lines demonstrate how reactor engineering and process optimization have redefined the limits of scale and flexibility. These technological advances are not merely incremental improvements but represent fundamental breakthroughs in managing the intense heat and mixing requirements of high-throughput polymerization while maintaining operational reliability and efficiency. Polypropylene production has witnessed comparable scale expansions, with Fujian Zhongjiang's integrated facilities demonstrating the progression from initial 500,000 tonnes per year production lines to the current world-scale 600,000 tonnes per year units utilizing LyondellBasell's Spheripol technology.



Fujian Meide Petrochemical Fuzhou complex - running Oleflex plant in the foreground, Catofin plant to be started up later in 2025 behind it | Baidu, Nov 2023

More dramatic scale increases are now seen at the origin of the C₂ and C₃ value chains. As we previously reported, ethane cracking facilities are now reaching ethylene production capacities of 2.1 million tonnes per year. The propane dehydrogenation sector is experiencing a similar technological evolution, with catalyst systems lying at the heart of process economics. The scale of PDH operations has now reached unprecedented levels, with individual units achieving 900,000 tonnes per year capacity, as demonstrated by Fujian Meide's facility that commenced operations in May 2025 and Fuzhou Wanjing's unit scheduled for startup later in 2025, both utilizing Lummus CATOFIN technology with specialized Clariant catalysts. Advanced PDH technologies now routinely operate at temperatures between 480-600°C under low pressure conditions, achieving propylene yields and selectivity that make large-scale operations economically viable even in regions with higher feedstock costs. The development of these technologies has been crucial in enabling companies to pursue backward integration strategies, as the improved economics of PDH operations make it feasible for downstream plastic producers to justify the substantial capital investments required for upstream expansion.

Strategic Implications and Future Trajectory

The acceleration of vertical integration in the petrochemical sector reflects broader strategic imperatives that extend beyond simple cost optimization. Companies are recognizing that integration provides critical protection against supply chain disruptions, market volatility, and competitive pressures that have intensified in recent years. The consolidation dynamics within different specialty chemical segments are driving companies to focus their portfolios while simultaneously optimizing their business models through strategic integration.



Zhongjing Petrochemical Group facilities in Jiangyin Industrial Zone | Chenhr

The implications of this integration trend extend to global trade patterns and competitive dynamics, as integrated producers gain significant advantages over standalone operations. The economic benefits of integration become particularly pronounced during market downturns, when integrated refinery-petrochemical sites consistently outperform their fuels-only peers due to their diversified revenue streams and operational flexibility. This performance differential is driving further consolidation as companies recognize that scale and integration have become essential requirements for long-term competitiveness in the evolving petrochemical landscape.

The future trajectory of the industry suggests that this integration trend will continue to accelerate, driven by the fundamental economics of large-scale operations and the strategic advantages of supply chain control. As companies like Fujian Zhongjiang demonstrate, successful integration requires not merely the ability to execute large capital projects, but the strategic vision to create synergistic value across the entire value chain while maintaining operational excellence at each stage of production. The companies that master this integration challenge will likely emerge as the dominant players in the next phase of global petrochemical industry evolution.


This article includes market data from WoodMckenzie, S&P Global, ICIS, Argus Media and other sources.

#refinerieintegration  #backwardintegration  #ethylene  #propylene  #valuechain  #lyondellbasell  #lummus  #uop  #honeywell  #sinopec  #technip 

AMUR GCC Project showing the 9 Linde Pyrolysis Furnaces and the Quench Tower | AGCC website

Amur Gas Chemical Complex: Navigating Technology Licensing Challenges

The Amur Gas Chemical Complex (Amur GCC) exemplifies the intricate balance between technological ambition and geopolitical realities. Originally designed to become the world’s largest polymer production site, the project has faced significant delays due to shifts in technology licensing dynamics, even as its core infrastructure advances.

The Amur GCC Project

Amur GCC stands as one of the most ambitious petrochemical undertakings in Russia’s recent history and a flagship of Russian-Chinese industrial cooperation. Located near Svobodny in the Amur region of Russia’s Far East, the project is a joint venture between SIBUR, Russia’s largest petrochemical company, holding a 60% stake, and China’s Sinopec, which owns the remaining 40%. When completed, Amur GCC will be among the world’s largest producers of base polymers, with a design capacity of 2.7 million tonnes per year—2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene.

The complex is integrated with the broader Amur gas processing and gas chemical cluster, ensuring direct feedstock supply via pipelines. Gazprom’s Amur Gas Processing Plant (Amur GPP), which processes natural gas from East Siberian fields, will supply the primary feedstock to Amur GCC: ethane (up to 2 million t/y), and LPG (propane/butane, ~1.1 million t/y).

Steam Cracker and Downstream Progress

At the heart of the complex lies its 2.3 million t/y ethylene plant, supplied and partially engineered by Linde before the German firm’s confirmed withdrawal in 2022. Linde’s contributions included delivering critical components like the 1,500-ton quench tower, transported from South Korea to the remote Amur site—a logistical triumph showcased in earlier project updates.



Quench tower delivery to AMUR GCC, Nov 2021 | Credit: Linde Engineering 

By January 2024, SIBUR released a progress video on AGCC status update as of December 2023, confirming that polyethylene (PE) and polypropylene (PP) production units were being deployed as originally planned. The footage shows equipment installation for these downstream facilities, suggesting that proprietary technologies from Western licensors—Univation (Unipol PE gas-phase plants), ChevronPhillips Chemical (PE slurry process, undefined if MarTECH Single Loop or Advanced Dual Loop), and LyondellBasell (Spheripol PP Technology)—remain integral to the project. This indicates that either licensing agreements persisted post-2022 or SIBUR/Sinopec retained rights to use the technologies despite licensors’ reduced involvement.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is a Slurry Loop Reactor | Credit: Sibur

Licensing Uncertainties and Delays

While Linde publicly exited the project by July 2022, when part of the equipment, including the pyrolysis unit, had already been built, SIBUR and Sinopec decided to reconsider the strategy for implementing the project, redesigned it and replaced contractors and license holders for the polyethylene and polypropylene lines. To this date, the status of other Western partners remains ambiguous as public disclosures from SIBUR and Sinopec have not clarified whether CPChem, Univation, or LyondellBasell continue to provide technical support or if their pre-sanction contracts are being honored. The lack of explicit withdrawal announcements contrasts with the project’s two-year delay.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is likely a Gas Phase Unipol PE reactor | Credit: Sibur

It is a matter of speculation if SIBUR and Sinopec may be relying on existing licenses, in-house expertise, or third-party intermediaries to proceed with the original technologies. The January 2024 video underscores that downstream unit construction aligns with initial designs, implying that the licensors’ intellectual property is still being utilized, albeit without confirmed active collaboration.

Construction began in August 2020 and mechanical completion has been delayed to 2026 (originally 2024–25). Despite licensing headwinds, the Amur GCC achieved 76% mechanical completion by mid-May 2025 with commercial polyethylene production to start by Q3 2026, polypropylene production and full operations expected to follow in 2027 (source: interfax.com).

Strategic Implications

The Amur GCC’s trajectory highlights the resilience of large-scale petrochemical projects in the face of geopolitical disruptions. While Linde’s exit created logistical and technical gaps, the continued use of Western-designed downstream technologies—whether through preserved licenses or workarounds—demonstrates SIBUR and Sinopec’s commitment to delivering a world-class facility. The complex’s success will hinge on operationalizing these units without direct licensor support, a challenge that could redefine global norms for technology transfer in sanctioned environments. For now, the Amur GCC stands as a testament to both international collaboration’s potential and its fragility in an era of shifting alliances.

#linde  #univation  #lyondellbasell  #chevronphillips  #cpchem  #sibur  #amurgcc  #sinopec 
#steamcracker  #ethyleneplant  #amur  #russia  #unipolpe  #martech  #slurryloop  #gasphasepe  #spheripol  #polyethylene  #polypropylene  #ethane  #lpg 

Simplified Reactor Schematics for High Pressure Ethylene Polymerisation. Credit: Portfolio Planning PLUS

Ningbo Zhenhai Refining & Chemical Company Ltd. (ZRCC), a key subsidiary of Sinopec, has signed a technology licensing agreement with ECI Group for a new ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE) plant in Ningbo, Zhejiang Province, China. The plant, designed for a capacity of 200,000 tonnes per year, will be part of ZRCC’s ongoing expansion of its integrated ethylene and downstream chemical complex in the Zhenhai District.

Details of the Licensing Agreement

Technology Scope: The agreement covers the licensing of ECI Group’s hybrid reactor technology, which merges the product versatility of an autoclave reactor with the higher throughput of a tubular reactor tail. This configuration is designed to enable the production of a broad range of high-pressure polyethylene products, including LDPE, EVA, and other high-value copolymers at larger scales, a capability that has traditionally been challenging for autoclave-based technologies alone.

Project Deliverables: ECI Group will provide the technology license, process design package, expanded process design package, and detailed design for the high-pressure system. The scope also includes technical procurement services and on-site support during installation, commissioning, and performance assessment.

Plant Integration: The new EVA/LDPE facility will be integrated into ZRCC’s large ethylene and downstream complex. ZRCC, as a Sinopec subsidiary, is a major operator in the region and has recently completed significant expansions to increase both crude oil processing and advanced materials production capacity at its Ningbo site.

Industry Context

Capacity Milestone: The contract marks a milestone for ECI Group, bringing its total nameplate licensed capacity for LDPE/EVA plants to 1 million tonnes since 2021, with projects in China ranging from 50,000 to 200,000 tonnes per year.

Strategic Expansion: The new plant forms part of NZRCC’s broader strategy to expand its portfolio of high-value specialty chemicals and polymers, supporting downstream industries such as automotive, home appliances, and textiles in the Yangtze River Delta.

Sinopec’s Role: NZRCC operates as a major refining and chemical subsidiary under Sinopec, one of the world’s largest integrated energy and chemical companies. The Zhenhai complex is a central hub for Sinopec’s advanced materials and petrochemical production in eastern China.


#ecigroup  #ldpe  #highpressure  #ethylenepolymerization  #autoclavereactor  #tubularreactor  #hydridtechnology  #sinopec  #zrcc  #refinery  #refining  #zhejiangrefinery 

ECI Group has been added.


#highpressure  #ldpe  #autoclavereactor  #ethylenepolymerization  #tubulareactor  #hydridtechnology  #simoncarves 

Cilegon Plant - LOTTE Indonesia New Ethylene (LINE). Credit: PT Lotte Chemical Indonesia

PT Lotte Chemical Indonesia (LCI) is undergoing a transformative phase marked by significant investment, new long-term supply agreements, and persistent industry headwinds. The company’s strategy and recent developments provide insight into both its growth ambitions and the broader challenges facing the Southeast Asian petrochemical sector.

Major Expansion: New Cracker Facility

LCI is set to commence operations at its new mixed-feed cracker in Cilegon, Banten province, Indonesia, in the second half of 2025. This facility, part of a $3.95 billion investment, will have an annual production capacity of 1 million metric tons of ethylene. The new cracker is a central component of the Lotte Chemical Indonesia New Ethylene (LINE) project, which aims to strengthen the company's upstream integration and supply chain resilience.

Strategic 10-Year Ethylene Supply Deal

In May 2025, LCI secured a 10-year ethylene supply contract with PT Asahimas Chemical, an integrated chemical producer in Indonesia. The contract, effective from July 1, 2025, to June 30, 2035, commits LCI to supply approximately 150,000 tonnes of ethylene per year to Asahimas Chemical. The agreement’s value is expected to exceed 10% of Lotte Chemical Titan (the Malaysian-listed parent)'s latest annual consolidated revenue, underlining its financial significance. Pricing for the contract is pegged to prevailing market rates, ensuring flexibility in a volatile market environment. The long-term deal provides both revenue stability for Lotte Chemical and supply security for Asahimas, supporting downstream chemical industries in Indonesia.

Financial and Market Pressures

Despite these strategic moves, Lotte Chemical Titan continues to face financial challenges. The company reported its eighth consecutive quarterly loss in Q1 2025, though losses narrowed year-on-year due to improved product spreads and contributions from its US associate. For Q1 2025, Lotte Chemical Titan posted a net loss of RM125.67 million, compared to RM178.03 million a year earlier, with revenue dropping 22.3% to RM1.49 billion on lower sales volume and prices. The global petrochemical sector is currently experiencing margin compression due to oversupply, particularly from China, which has weighed on profitability and forced companies like Lotte Chemical to operate existing Malaysian crackers at reduced capacity (45%-50% since December 2024).

Ownership Restructuring and Strategic Flexibility

To bolster its financial position, Lotte Chemical reduced its stake in the Indonesian venture from 49% to 24% in early 2025, selling the shares to a consortium of South Korean financial institutions. Lotte Chemical Titan retains a 51% stake in Lotte Chemical Indonesia. The company is also exploring feedstock flexibility for the new cracker, planning to source naphtha from the Middle East and potentially substitute up to 50% of naphtha feedstock with natural gas liquids such as LPG or ethane, depending on market economics.

Sector Outlook and Strategic Positioning

The Southeast Asian petrochemical industry is in a phase of consolidation, with mergers and acquisitions on the rise as companies seek to enhance shareholder value amid challenging conditions. Lotte Chemical’s long-term supply contract and the new Indonesian cracker position it to capitalize on regional  demand growth, even as it navigates short-term market volatility and restructuring pressures. The new supply agreement is not expected to impact the company’s share capital or ownership structure, maintaining stability for investors.

Conclusion

Lotte Chemical Indonesia’s ambitious expansion and strategic supply agreements reflect a commitment to long-term growth and regional market leadership. However, the company continues to navigate a difficult economic landscape characterized by global oversupply, margin pressure, and the need for financial restructuring. The coming years will be pivotal as the new cracker comes online and the company seeks to leverage its strengthened position in Indonesia’s growing chemical sector.

#lotte  #lottechemical  #indonesia  #malaysia  #lci  #lineproject  #cilegon  #asahimas  #agc  #asahiglass  #ethylene  #steamcracker  #ethyleneplant 

PJSC Nizhnekamskneftekhim (NKNKH), part of the SIBUR petrochemical holding, has successfully completed construction and initiated commissioning of its new EP-600 ethylene plant in Nizhnekamsk, Tatarstan. Construction concluded in December 2024, marking a major milestone for both the company and the Russian petrochemical industry.

Key Project Highlights

• Construction Completion: The EP-600 complex, the largest petrochemical expansion in Tatarstan’s modern history, was finished in December 2024 after four years of development.
• Startup and First Ethylene Production: In January 2025, the plant received its first tons of ethylene as part of commissioning activities, with commercial-grade ethylene already delivered to downstream consumers at Nizhnekamskneftekhim and Kazanorgsintez.
• Capacity Expansion: EP-600 doubles Nizhnekamskneftekhim’s ethylene production capacity, adding 600,000 tonnes per year. The facility can process 1.8 million tonnes of straight-run gasoline annually, also producing over 270,000 tonnes of propylene, 245,000 tonnes of benzene, and 88,000 tonnes of butadiene.
• Downstream Integration: The new complex enables expanded output of premium polymers and chemicals, including: 300,000 tpy of metallocene polyethylene, 250,000 tpy of polystyrene, 350,000 tpy of ethylbenzene, 400,000 tpy of styrene and 50,000 tpy of hexene.
• Investment and Technology: The project represents an investment of about 200 billion rubles. Notably, commissioning was managed using in-house expertise-without reliance on foreign licensors or vendors-demonstrating SIBUR’s growing technical independence.
• Environmental Standards: EP-600 incorporates advanced environmental solutions, including CO₂ emissions 10% below the best available technologies, and nitrogen oxide emissions significantly lower than both Russian and European standards.

Strategic Significance

The EP-600 project is central to SIBUR’s and Nizhnekamskneftekhim’s strategy for expanding Russia’s chemical and petrochemical complex through 2030. The facility’s products will support both existing and new production chains, boosting the development of the Volga petrochemical cluster and stimulating further investment in high-value polymer processing in the region.

Next Steps

• Ramp-Up: The plant aims to reach full design capacity by the end of 2025.
• Further Expansion: With EP-600 as a foundation, SIBUR is advancing additional projects, including new hexene, ethylbenzene, styrene, and polystyrene units, as well as premium metallocene polyethylene production. Construction of these downstream facilities is scheduled to begin in 2025, with commissioning targeted for 2028.

With the successful completion and startup of EP-600, Nizhnekamskneftekhim and SIBUR have reinforced their leadership in Russia’s petrochemical industry, laying the groundwork for further growth and innovation in the sector.

#sibur  #nizhnekamskneftekhim  #kazanorgsintez  #ethyleneplant  #steamcracker  #russia 

Lukoil Stravolen petrochemical producer has been created, some of the technologies added with known capacities.


#lukoil  #stravolen  #univation  #unipolpe  #grace  #unipolpp  #ethyleneplant  #steamcracker  #technip 

Kazanorgsintez PJSC company and its manufacturing site have been created. Multiple assets have been added. 

#ethyleneplant #technip  #univation  #unipol  #ldpe  #autoclave  #highpressure  #russia  #kazan 

Nizhnekamskneftekhim manufacturing site has been created and its first and second ethylene plants have been added.

#linde #ethyleneplant  #steamcracker  #sibur  #nizhnekamskneftekhim 

PJSC "Nizhnekamskneftekhim" has been created.


#Nizhnekamskneftekhim  #sibur  #russia  #rubber  #ethyleneplant  #steamcracker 

Abu Dhabi, UAE | 28 April 2025 -- Borouge Plc has announced a series of strategic expansion projects that will increase its annual polyolefin production capacity to over 6.6 million tonnes by 2028. The company has awarded two major contracts to support this growth, with the initiatives expected to contribute between $165 million and $200 million to annual EBITDA

Linde Engineering has been selected to provide Front-End Engineering Design services for the upgrade of Borouge’s second ethane cracker (EU2), which will add 230,000 tonnes per year and boost the unit’s capacity by 15%. This expansion is scheduled for completion in the fourth quarter of 2028, with ethane feedstock supplied by ADNOC Gas and ADNOC Refining

In parallel, Target Engineering Construction Company has secured an engineering, procurement, and construction contract to expand Borouge’s fourth and fifth polyethylene units (PE4 and PE5). These upgrades will increase the nameplate capacity of each unit from 540,000 to 700,000 tonnes per year, utilizing advanced Borstar Polyethylene technology. The expanded units are expected to be operational in the first quarter of 2027

These developments follow Borouge’s track record of rapid growth since 2001, having increased its production capacity tenfold to reach 5 million tonnes per year. The new expansions, together with the Borouge 4 mega project and the proposed combination with Borealis and the acquisition of Nova Chemicals, position Borouge to become one of the world’s leading polyolefin producers, with a combined capacity of 13.6 million tonnes across 62 plants globally.

#borouge  #borealis  #ethyleneplant  #borstar  #linde  #capacityexpansion  #uae  #unitedarabemirates #polyethylene 

Kawasaki refinery aerial view @ENEOS Corporation

ENEOS to Restructure Petrochemical Operations with Planned Shutdown of Kawasaki Ethylene Unit by 2027

Tokyo | Feb 26, 2025 -- ENEOS Corporation has announced that it will begin considering ways to optimize its petrochemical production and supply network, with the expectation that one of its two ethylene production units at the Kawasaki Refinery Plant in Kawasaki City, Kanagawa Prefecture will be shut down. This decision is part of ENEOS’s Third Medium-Term Management Plan, which aims to establish a solid earnings base and strengthen the competitiveness of its petroleum refining and marketing operations. Safe operations and a stable supply of energy remain key priorities for the company.

The Japanese petrochemical industry is currently facing a structural decline in domestic demand for its products, as well as intense international competition, particularly from other Asian countries. The construction of new petrochemical plants, especially in China, has led to an oversupply situation, forcing existing ethylene production units in Japan to operate at lower rates. As a result, the industry is under significant pressure.

The ethylene production unit scheduled for termination is located in the Ukishima South Area of the Kawasaki Refinery Plant, with the shutdown planned for the end of fiscal year 2027. The Kawasaki Refinery Plant currently operates two ethylene production units: the Ukishima North Area unit, which began operations in 1971 and has a production capacity of 540,000 tons per year, and the Ukishima South Area/Kawasaki Area unit, which started in 1970 and has a capacity of 448,000 tons per year.


#eneos  #steamcracker  #ethyleneplant  #naphthacracker  #kawasaki  #refinery  #plantclosure 

Ethylene Production Optimization in the Chiba Area scheduled for completion in fiscal year 2026.

April 1, 2025

Sumitomo Chemical Co., Ltd. and Maruzen Petrochemical Co., Ltd. (a subsidiary of Cosmo Energy Holdings Co., Ltd.) have announced a significant change to their ethylene production operations in the Chiba area. Maruzen Petrochemical will shut down its own ethylene production facilities by fiscal 2026, and all ethylene production will be consolidated at Keiyo Ethylene Co., Ltd. Keiyo Ethylene is a joint venture between Maruzen Petrochemical, which holds a 55% ownership stake, and Sumitomo Chemical, which holds 45%. The shareholding ratio will remain the same after the consolidation.

This move comes in response to several challenges facing the industry, including a global oversupply of ethylene due to new, large-scale plants in China, as well as declining domestic demand for ethylene in Japan. Both companies recognize the need to improve operating rates, lower costs, and reduce CO₂ emissions to remain competitive.

By consolidating production at Keiyo Ethylene, which is Japan’s most advanced and largest ethylene facility, Sumitomo Chemical and Maruzen Petrochemical aim to increase the operating rate and competitiveness of the Chiba petrochemical complex. The consolidation is also expected to lower fixed costs and advance green transformation initiatives, supporting the companies’ efforts to achieve net zero carbon emissions.

The Maruzen Chiba Plant, operated by Maruzen Petrochemical since April 1969, currently has a capacity of 525,000 tons per year (or 480,000 tons during repair years). Keiyo Ethylene, which began operations in December 1994, has a capacity of 768,000 tons per year (or 690,000 tons during repair years). The optimization and consolidation of ethylene production are targeted for completion by fiscal year 2026.

Overall, this consolidation is designed to ensure the long-term competitiveness and sustainability of the Chiba petrochemical complex by focusing production at the most efficient site and supporting environmental goals.


#sumitomo  #maruzen  #chemicals  #ethylene  #chiba  #japan  #consolidation  #keiyo  #cracker  #steamcracker  #ethyleneplant  #plantclosure 

Ibaraki plant cracker and ethylene capacity have been added.

#mitsubishi #chemical  #ibaraki  #kashima  #steamcracker  #naphthacracker  #ethyleneplant 

Keiyo Ethylene Company has been added, and Chiba ethylene plant with production capacities added.



#keiyo  #kec  #ethylene  naphthacracker #chiba  #japan  #maruzen  #sumitomo  #steamcracker 

Cracker technology has been identified, OCT plant and olefins nameplate capacities added.

#lummus #steamcracker  #liquidcracker  #naphthacracker  #osaka  #japan  #mitsui  #mcm  #ethylene #oct  #propylene 

TotalEnergies Manufacturing Site at the port of Antwerpen ©Belga

TotalEnergies closes one of its two steam crackers in Antwerp, 253 jobs disappear "without layoffs"

Antwerpen, 22 April 2025 -- TotalEnergies will close one of its two steam crackers in the port of Antwerp, a decision that will impact more than 250 jobs. No forced layoffs will be announced, according to the energy group.

By 2028, the chemical cluster in the port of Antwerp will lose one of its three steam crackers. TotalEnergies has chosen to shut down its oldest Naphtha Cracker (NC2). The reason is a concerning overcapacity in the petrochemical market. Although 253 positions are affected by this closure, management seeks to reassure: no forced departures are on the horizon.

“We assure every employee of the affected steam cracker that they will be able to continue their activity at our Antwerp site,” says Ann Veraverbeke, CEO, in an interview with Gazet van Antwerpen. “This transition is possible because, by early 2028, 270 of our employees in Antwerp will reach the legal retirement age. The 253 employees from the old steam cracker will be essential to fill this wave of departures.”

Ethylene overcapacity

NC2, a petrochemical facility that transforms hydrocarbons into basic molecules used in the chemical industry, was “historically dependent” on a contract with a user of the ethylene produced, who did not wish to renew this contract, the French oil and gas group specified.

The facility “will no longer have outlets for its ethylene production” and TotalEnergies will “focus on its newest steam cracker (NC3), whose ethylene production is entirely consumed by TotalEnergies’ units in Antwerp and Feluy,” it added.

2017 Revamp of Naphtha Cracker 3

As part of a project to upgrade its refining and chemicals platform in Antwerp, TotalEnergies had started up a new ethylene cracker that runs on ethane feedstock in July 2017, investing nearly $60 million to revamp its Naphtha Cracker 3 to run on the light feed and the adaption of the site’s terminal to enable the import of 200,000 t of ethane per year by ship from Norway. The revamp was done to optimize supply by providing flexibility for the cracker to use either ethane, butane or naphtha as feedstock, so that advantaged feedstock could therefore account for more than 50% total input.

#totalenergies  #antwerp  #belgium  #petrochemicals  #steamcracker  #naphthacracker  #plantclosure  #ethylene 

Diethylbenzene (DEB) has been added. DEB is a by-product formed in the alkylation of benzene with ethylene.

#deb #diethylbenzene  #alkykation  #ethylene  #benzene  #ethylbenzene 

Polyethylbenzene (PEB) has been added. PEBs are formed in the alkylation of benzene with ethylene. 

#peb #polyethylbenzene  #alkylation  #nbenzene  #ethylene  #ethylbenzene 

Silleno project has been modelled, with technologies and their respective capacity identified, excepted for the ethylene  dimerization process.
 

#silleno #kazakhstan  #axens  #alphabutol  #cpchem  #martech  #adl  #martechadl  #dualloop  #bimodal  #univation  #unipolpe  #lummus  #steamcracker  #srt  #steamcracking  #gascracker  #ethylene  #polyethylene 

Dec 16, 2024 | Phillips 66 News Release

Two world-scale joint venture projects being developed by Chevron Phillips Chemical Company (CPChem) and QatarEnergy remain on track to start operations in 2026, Phillips 66 said on Monday. Phillips 66 and Chevron hold equal stakes in Chevron Phillips Chemical.

The US project is Golden Triangle Polymers, an integrated polyethylene (PE) complex in Orange, Texas. Chevron Phillips holds a 51% stake, and construction started in 2023.

The Qatari project in Ras Laffan is another integrated PE project. It is a 70:30 joint venture between QatarEnergy and CP Chem. Construction on this project started in 2024.

Remarquably, these two ethane crackers employing Technip tecnology will be the world's two largest, producing each above 2 Mt/a of ethylene when they are starting up, and each of the two CPChem MarTECH Single Loop polymerization plants also the world's largest with an output of 1 Mt/a of HDPE each at Golden Triangle and 850 Kt/a each at Ras Laffan.


#phillips  #chevron  #qatarenergy  #cpchem  #technip  #martech  #slurryloop  #ethylene  #polyethylene  #raslaffan  #goldentriangle  #steamcracking

CSPCL Huizhou Petrochemical Plant / Shell

Beijing, China, February 22, 2016 -- CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd., has officially announced the third phase of expansion for its petrochemical complex in Daya Bay, Huizhou, Guangdong Province. This ambitious project, valued at $6.7 billion, represents a significant step forward in meeting China's growing demand for petrochemical products.

The expansion will include the construction of a third ethane cracker with a planned capacity of 1.6 million tonnes per year (tpy) of ethylene, boosting the complex's total ethylene production capacity to 3.8 million tpy. Ethylene serves as a key building block for plastics and other essential chemical products. Alongside the cracker, the project will add 16 downstream derivatives units producing specialty chemicals including linear alpha olefins, Bisphenol-A (240,000 topy), polycarbonates (260,000 tpy), and diphenyl carbonate (220,000 tpy).

Linear alpha olefins are vital for manufacturing detergent alcohol and synthetic lubricants, while polycarbonates are used in impact-resistant plastics that can replace carbon-intensive steel. Carbonate solvents play a critical role in lithium-ion batteries, supporting the electric vehicle sector and energy storage solutions.

The new facilities aim to meet domestic demand across various industries, including agriculture, construction, healthcare, and consumer goods.

Scheduled for completion by 2028, the project incorporates innovative technologies to reduce environmental impact. CSPC plans to electrify compressor units and increase renewable energy usage to achieve a 20% reduction in carbon dioxide emissions, aligning with China's carbon neutrality goals.

#sustainabilitygoals  #steamcracker  #ethanecracker  #ethylene  #cnooc  #cspc  #shell  #china  #huizhou  #guangdong  #sustainability  #linearalphaolefins  #lao  #polycarbonate  #electrification  #renewableenergy  #carbonemissions  #neutralitygoals 

Dow Tarragona North has been created  and the cracker plant has been  added as well as ethylene and propylene production.


#dow  #spain  #iberica  #steamcracker  #linde  #ethylene  #propylene 

Construction is under way for S-Oil's $7 billion Shaheen petrochemical project in Ulsan (Credit: S-Oil)

Ulsan, South Korea – February 17, 2025 – S-Oil, a leading South Korean refiner, has announced that its $7 billion Shaheen petrochemical project in Ulsan has reached 55% completion in engineering, procurement, and construction. This major initiative, featuring one of the world’s largest integrated steam crackers, is on track for mechanical completion in the first half of 2026, with commercial operations starting in the second half. Utilizing thermal crude-to-chemicals (TC2C) technology developed with Saudi Aramco and Lummus Technology, the project will produce 1.8 million tons of ethylene annually, doubling S-Oil’s petrochemical output to 25% and boosting South Korea’s economy with up to 17,000 jobs during peak construction.

#soil  #aramco  #lummus  #southkorea  #korea  #shaheen  #tc2c  #crudeoiltochemicals  #oiltochemicals  #steamcracking  #ethylene  #ulsan 

Vienna, Austria / Abu Dhabi, UAE — March 4, 2025

In a landmark move reshaping the global petrochemicals industry, Austria’s OMV and Abu Dhabi National Oil Company (ADNOC) have unveiled plans to merge their chemical subsidiaries, Borouge and Borealis, into a new entity named Borouge Group International. This new company will then acquire Nova Chemicals, a leading North American polyethylene producer, for $13.4 billion, including debt. The combined enterprise, valued at over $60 billion, is poised to become one of the world’s largest polyolefins producers, with a production capacity of approximately 13.6 million tons per year. The transaction, expected to close in the first quarter of 2026 pending regulatory approvals, underscores both companies’ ambitions to expand their global chemicals footprint.

The deal involves two key steps.
First, OMV, which owns 75% of Borealis, and ADNOC, holding 54% of Borouge, will consolidate their shareholdings into Borouge Group International. Each company will own approximately 46.94% of the new entity, with the remaining 6.12% offered as free-float shares to Borouge’s existing shareholders. To balance the ownership, OMV will contribute €1.6 billion (about $1.7 billion) in cash, subject to adjustments based on dividends paid before the deal closes.
Second, Borouge Group International will acquire Nova Chemicals from Mubadala Investment Company, an Abu Dhabi sovereign wealth fund, for an enterprise value of $13.4 billion. The equity value of the deal is reported at $9.377 billion, with the remainder comprising assumed debt. Nova Chemicals, based in Canada, operates four production sites in the Sarnia area, boasting a capacity of 2.6 million tons of polyethylene and 4.2 million tons of ethylene annually. The resulting company will combine Borouge’s dominance in the Middle East and Asia, Borealis’ leadership in Europe, and Nova Chemicals’ strong foothold in North America, creating a truly global player in the polyolefins market.

The formation of Borouge Group International and its acquisition of Nova Chemicals promise to reshape the industry. The merger unites Borouge’s access to competitive feedstock from ADNOC, Borealis’ European market expertise, and Nova Chemicals’ North American operations, bolstered by shale gas-based resources. This geographical diversity strengthens the company’s ability to serve customers worldwide. With an estimated $500 million in annual cost synergies, the new entity will optimize production, share cutting-edge technologies, and leverage combined market access. The company aims to rank as the fourth-largest polyolefins producer globally, enhancing its competitiveness. Sustainability is also a key focus, with all three companies—Borouge, Borealis, and Nova Chemicals—bringing expertise in recycling technologies and sustainable products. Borouge Group International is positioned to lead in the circular economy, targeting net-zero Scope 1 and 2 emissions by 2050.

Borouge Group International will be headquartered in Vienna, Austria, with a regional base in Abu Dhabi, UAE, and additional hubs in Calgary, Pittsburgh, and Singapore. The company will be listed on the Abu Dhabi Securities Exchange (ADX), with potential plans for a secondary listing in Vienna. Existing Borouge shareholders will exchange their shares for stakes in the new entity, with promises of dividend growth. The acquisition of Nova Chemicals will be funded through debt, which the company plans to refinance in the capital markets post-closing, reflecting confidence in its long-term financial stability backed by ADNOC and OMV.

#abudhabi  #omv  #novachemicals  #borouge  #borealis  #merger  #ethylene  #polyethylene  #recycling  #sustainability  #circulareconomy #netzero #shalegas  #mubadala 

ExxonMobil's ethylene plant n°3 in Baytown, Texas (Credit: ExxonMobil)

February 7, 2025 | Point Comfort, Texas, USA (ExxonMobil Corp.)

ExxonMobil is evaluating the construction of an $8.6 billion polyethylene plant in Point Comfort, Texas, as part of its global growth strategy. The proposed facility, which would include a large-scale ethane cracker, aims to produce ethylene and polyethylene—key components in plastic manufacturing.

The project is under review following Exxon's application for tax abatements under Texas' Jobs, Energy, Technology, and Innovation Act (JETI). If approved, construction could begin as early as 2026, with operations expected to start in 2031.

The plant would generate approximately 600 permanent and contract jobs and employ over 3,000 workers during peak construction. Exxon projects the facility will contribute $3.6 billion annually to the state's economy once fully operational.

Exxon is also considering alternative locations for the project in the Middle East, Asia, and other parts of North America. The final decision will depend on market conditions and governmental support in competing regions.

#exxonmobil  #polyethylene  #ethylene  #steamcracker  #texas  #usgc  #gulfcoast  #ethanecracker  #gascracker 

The mass balance has been developed for the main processes, some downstream processes not yet covered. 


#polyethylene  #lldpe  #hdpe  #ldpe   #propyleneoxide  #raffinate  #butadiene  #ethylene  #steamcracking 

SP Chemical completed the first gas-based cracker in Taixing, China, in 2019, producing 780,000 tpa ethylene and 150,000 tpa propylene.

February 7, 2025 | SINGAPORE (Reuters)

Despite growing trade tensions between Washington and Beijing, China's ethane imports from the United States are expected to rise significantly in 2025 as petrochemical producers seek cheaper feedstock alternatives. Major Chinese companies are investing over $16 billion in infrastructure improvements to accommodate this growth.

Industry analysts forecast China's ethane imports to reach between 6.3 million and 8.2 million metric tons in 2025, representing an increase of 9% to 34%. The U.S. Energy Information Administration projects its net ethane exports to rise 6% to 520,000 barrels per day, with China expected to absorb most of this increase.

However, two main factors currently constrain this trade growth: limited U.S. export capacity and a shortage of specialized tankers. To address these limitations, U.S. pipeline operators Energy Transfer and Enterprise Products Partners are expanding their terminal capacities.

China has also demonstrated its commitment to increasing ethane imports by reducing its import tariff to 1% in 2025, down from 2% in 2024. Enterprise CEO Jim Teague remains optimistic about the trade relationship, noting that Chinese dependence on imported propane and ethane should protect this segment from broader trade tensions.

#ethane  #china  #imports  #usa  #feedstock  #refining  #refinery  #steamcracking  #gascracker  #propane  #ethyleneplant 

Multiple technologies have been identified and added.
Work in progress to add other technologies used by the complex, not yet modelled on the platform. 

#kbr  #phenolacetone  #cumene  #badger  #lyondellbasell  #spheripol  #lupotech  #isopropylbenzene  #cumene  #badger  #bisphenol  #phenol  #polycarbonate  #asahikasei  #steamcracker  #gascracker  #eoeg  #ethyleneglycol  #meg  #scientificdesign  #hostalen  #hdpe 

All Polyolefin and EO/EG Technologies from Phase 1 and Phase 2 have been added as well as their production capacities.

#polyethylene  #polypropylene  #ethyleneglycol  #hpeo  #meg   #hdpe  #lldpe  #pp  #ineos  #lupotech  #spheripol  #spherizone  #univation  #unipolpe  #master  #lyondellbasell  #shell  #cnooc  #china  #cspc 

CNOOC Shell Huizhou Petrochemical Complex in Daha Bay, Huizhou, China

January 15, 2015 | BEIJING | Shell China

CNOOC Shell Petrochemicals Limited (CNOOC Shell), a joint venture between Shell Nanhai Private Limited and CNOOC Petrochemical Investment Co., Ltd., has made the final investment decision to expand its petrochemical complex at Daya Bay, Huizhou, southern China.

The project will include the construction of a third ethylene cracker with a planned annual capacity of 1.6 million tons, a key component in the production of plastics, as well as a series of downstream derivative units, including linear alpha olefins.

The investment will also build a new facility for the production of high-performance specialty chemicals such as polycarbonates and carbonate solvents that are essential to everyday life.

Linear alpha olefins can be used to produce detergent alcohols and synthetic lubricant base stocks. Polycarbonates can be used to make impact-resistant plastics, replacing carbon-intensive steel, while carbonate solvents are used in lithium batteries, which are crucial for the electric vehicle sector and energy storage.

Designed primarily to meet China’s domestic demand, the new facility will produce a wide range of chemicals used in the agriculture, industry, construction, healthcare and consumer goods sectors.

The investment will enhance CNOOC Shell’s competitiveness by expanding its product value chain, promoting its further integration with existing chemical plants, and promoting its development of stronger innovation capabilities to meet the rapidly growing customer needs in the Chinese market.

"For more than two decades, CNOOC Shell has been providing high-quality products to the Chinese market and has become one of the largest Sino-foreign petrochemical joint ventures in China," said Huibert Vigeveno, Director of Downstream and Renewables Business of Shell Group.

“This new investment is a key enabler for CNOOC Shell’s strategic transformation towards higher-end and differentiated chemicals. It is consistent with Shell Chemicals & Refining’s strategy of pursuing targeted business growth in strong regions. It is also a testament to our strong partnership with CNOOC.”

The expansion is expected to be completed in 2028.


#olefins  #ethylene  #propylene  #butenes  #steamcracking  #olefinplant  #linearalphaolefins  #lao  #polycarbonate  #shell  #cnooc  #jointventure  #china  #refining 

Liwa Plastics Industries Complex (LIPC) has been added, the main technologies have been identified and the mass balance halfway developed.

#lummus  #lyondellbasell  #univation  #unipolpe  #spheripol  #srtsteamcracking  #ethyleneplant  #oman  #oq 

Lummus UOP EBOne Ethylbenzene technology has been added.

#lummus #uop  #honeywell  #alkylation  #aromatics  #benzene  #ethylene  #ethylbenzene  #styrene 

Versalis Ethylbenzene technology has been added.

#versalis #alkylation  #aromatic  #benzene  #ethylene  #ethylbenzene  #zeolite 

Sumitomo LDPE/EVA dual-autoclave reactor technology, now licensed by Lummus Technology as Hyperlene, has been added.


#lummus  #sumitomo  #autoclave  #ldpe  #polyethylene  #ethylene  #highpressure  #hyperlene 

Aug 28, 2024 | Offshore Technology

The venture, estimated to cost more than $10bn (Rs839.48bn), is in discussion with ONGC and its subsidiary HPCL.

The Chatterjee Group (TCG), a US-based private equity firm, is seeking a partnership with Indian state-run companies for an oil-to-chemicals project in Cuddalore, Tamil Nadu, reported Bloomberg, citing sources. TCG is in discussion with Oil & National Gas Corporation (ONGC) and its subsidiary Hindustan Petroleum Corporation (HPCL). The proposal suggests the state companies collectively hold a 49% stake in the project – estimated to cost more than $10bn – while TCG, which operates in India through Haldia Petrochemicals, would retain the remaining 51% share. TCG’s project aims to produce 3.5mtpa of ethylene and propylene.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. Haldia Petrochemicals currently operates a petrochemical plant in eastern India and is developing the nation’s largest integrated phenol project in West Bengal’s Haldia.

The potential investment reflects India’s focus on expanding petrochemical capacities, providing essential materials for a range of products from consumer goods to automotive components. As per government estimates, the demand for chemicals and petrochemicals in India is projected to triple to $1trn by 2040. Oil refiners, including Reliance Industries led by Mukesh Ambani, are shifting their production focus towards petrochemicals over traditional fuels to cater to the increasing demand for specialty plastics and chemicals used in solar panels and electric vehicles.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. In other development, ONGC has recently been granted government approval for an additional investment of $2.19bn into its petrochemical unit ONGC Petro Additions.

#haldia  #chatterjeegroup  #india  #cotc  #oiltochemical  #hplc  #ongc  #reliance  #ethylene  #propylene  #petrochemicals  #oilrefining  #petroadditions 

The ethylene plant employing Huanqiu Engineering technology has a total of 7 cracking furnaces, including two gas furnaces and five liquid furnaces | weixin | 27 Oct 2024


Dushanzi Petrochemical Tarim Phase II Ethylene Project is accelerating

Petrochemical Industry Going Global Alliance | November 9, 2024

At present, Dushanzi Petrochemical is accelerating the construction of the Tarim 1.2 million tons/year Phase II ethylene project, which will quickly release 1.2 million tons of polyethylene, 450,000 tons of polypropylene, and 100,000 tons of rubber production capacity. At the same time, it can provide 400,000 tons of raw materials per year to drive the development of the downstream industrial chain.

The Tarim 1.2 million tons/year Phase II ethylene project adheres to the innovative and green construction concept and has built 11 major production units, 10 of which use domestic technology (9 use China Petroleum’s own technology); it maximizes the use of domestic technology and localized equipment, with a localization rate of 99%.

At the end of October this year, the first domestically produced dual-end functionalized solution-polymerized styrene-butadiene rubber SSBR3540 F was successfully started up at the 240,000 tons/year SSBR/SBS rubber unit of PetroChina Dushanzi Petrochemical, filling the domestic gap. Currently, the production capacity of solution-polymerized styrene-butadiene rubber of Dushanzi Petrochemical has reached 160,000 tons/year.

#cnpc  #petrochina  #dushanzi  #tarim  #ethylene  #polyethylene  #polypropylene  #sbs  #rubber  #ssbr  #china 

The two Unipol PE plants have been added with their production, to complete the mass balance.


#unipol  #polyethylene  #univation  #fulldensity  #metallocene  #prodigy  #catalyst  #tarim  #ethylene  #dushanzi  #petrochina  #korla 

19^th Sep 2024

On September 17, the first large tower hoisting ceremony of the Tarim 1.2 million tons/year Phase II Ethylene Project of Dushanzi Petrochemical Company was held at the Shangku Petrochemical Park in Korla, Xinjiang.

As the first large tower, the quench water tower is the equipment with the largest diameter in the ethylene unit. It took only more than 100 days to complete the manufacturing, setting a record for the manufacturing of large oversized equipment. The main line of this hoisting used a 4,000-ton crane, and it took only 9 days to transport and assemble.

This hoisting marked the entry of the ethylene unit into the equipment installation stage, which kicked off the on-site construction.

The installation of the quenching water tower is the first large tower crane installation of the project, which opens the prelude to the installation of 9 large tower cranes in the entire ethylene unit. It is planned to complete the installation of 9 large tower cranes on October 31, marking a new stage in the construction of the ethylene unit project.

The main function of the cracking gas quenching water tower is to reduce the temperature of the cracking gas and recover low-grade heat at the same time. The cracking gas quenching water tower achieves cooling and partial condensation of the cracking gas through direct countercurrent contact with the quenching water. This process not only helps to reduce the temperature of the cracking gas and separate part of the gasoline in the cracking gas, but also recovers part of the low-grade heat through the quenching water cycle, further improving energy utilization efficiency. This series of operations effectively reduces the temperature of the cracking gas, ensures the normal operation of the cracking gas compressor, greatly reduces the amount of sewage discharged, and improves the energy utilization efficiency of the ethylene unit and reduces energy consumption by recovering low-grade heat.

At present, the overall progress of the project has been completed by 13.6%. It is planned to complete the construction of the underground pipeline network of the entire site on September 20 and the construction of the entire road on October 30. This year's interim goal is to complete 70% of the soil-less construction before the arrival of winter, creating good conditions for installation next year.

The total investment of the Dushanzi Petrochemical Tarim 1.2 million tons/year Phase II ethylene project is 21.88 billion yuan. After completion, it can produce more than 2 million tons of high-end polyolefins and high-performance rubber materials annually, further improving the localization rate of the domestic high-end petrochemical product industry chain supply chain. The basic machinery of the project is scheduled to be completed by the end of 2025, and fully completed and put into production in 2026.

Source

#ethylene #dushanzi #korla #xinjang #china #petrochina #cnpc #ethyleneplant #steamcracker

Photo: On August 23, the 45,000 standard cubic meters/hour air separation unit of Jilin Petrochemical was started up

Jilin Petrochemical Refining and Chemical Transformation and Upgrading Project is accelerating

Petrochemical Industry Going Global Alliance | November 9, 2024

At present, the CNPC's Jilin Petrochemical Refining and Chemical Transformation and Upgrading Project with a total investment of 33.9 billion yuan is accelerating. It is expected that 18 main units and 142 small overall projects of the transformation and upgrading project will be delivered before November 30. Before the end of the year, all 21 units will be delivered, and the project will be fully put into production in 2025.

After it is put into production, it can achieve an increase of 2.8 million tons of chemical products per year. After the project is put into production, while maintaining the crude oil processing capacity unchanged, it can achieve a reduction of 2.63 million tons/year in oil product output and an increase of about 2.77 million tons/year in chemical products. The effect of "reducing oil and increasing chemicals" is significant; especially after the ABS production capacity reaches 1.8 million tons/year, it will rank first in China and third in the world, highlighting the advantages of the industrial chain; new high-value-added chemical products and new materials such as EVA, bisphenol A, and butadiene rubber will be added.
 
#jilin  #petrochemical   #china   #ethylene   #refining   #chemical 

Hengyi Petrochemical Company has been added.

#hengyi #petrochemical  #china  #zheijiang  #hangzhou  #pta  #pet  #polyester  #paraxylene  #meg  #ethyleneglycol  #cpl  #pa6  

BASF Zhangiang Verbund Site Progress News

◾️ Zhanjiang, China | 6^th Sep 2022 | BASF inaugurates the first plant of its new Zhanjiang Verbund site

BASF is inaugurating  the first plant of its Zhanjiang Verbund site today. It will supply an additional capacity of 60,000 metric tons of engineering plastics compounds per year in China, bringing BASF’s total capacity of engineering plastics in Asia Pacific to 420,000 metric tons from 2023. The new plant will enable BASF to meet the growing demand of its customers, particularly in the automotive and electronics industries.

◾️ Linde Press Releases, 8^th Feb 2023, Linde Engineering Signed Agreement to Build a Synthesis Gas Plant for BASF in China

Linde Engineering will implement the newly awarded contract in a consortium together with its Chinese partner East China Engineering Science and Technology Co., Ltd (ECEC). The two companies have previously worked together in the design and construction of several Rectisol^® Acid Gas Removal units in China. For the new BASF project Linde will be acting as consortium leader, including the provision of basic engineering and key equipment. ECEC will be responsible for the detailed design and the construction.

◾️The Paper | 4^th Sep 2023 | BASF starts construction of syngas plant at its integrated Zhanjiang site, scheduled to start production in 2025

BASF China's official website reported on September 4 that the syngas unit at BASF's integrated base in Zhanjiang has broken ground. This world-class syngas unit will be fully integrated into the integrated base and is scheduled to be put into production in 2025.

◾️Global Times | Published: 19^th Jan 2024 |New BASF plant inaugurated in S.China, ready to supply global market

German multinational chemical company BASF on 18^th January celebrated the inauguration of its Thermoplastic Polyurethane (TPU) plant at its Zhanjiang Verbund site in South China's Guangdong Province, marking a milestone in the site's initial construction phase, according to a statement sent to the Global Times from BASF on Thursday. The new plant is the largest single TPU production line for BASF globally. It will help to meet market demand in industrial, eMobility and new energy segments, the company said.

◾️China Chemical Market Insights | 24^th Jan 2024 |BASF's Zhanjiang Verbund Site: A Milestone in Asia-Pacific’s Chemical Industry

Progress in Construction and Technology:
▪️Construction of a polyethylene plant began on June 19, 2023, with a 500,000-ton annual capacity, set to start production in 2025.
▪️In early 2023, BASF initiated the construction of plants for NPG, citral, glacial acrylic acid (GAA), butyl acrylate (BA), and 2-ethylhexyl acrylate (2-EHA).
▪️Significant groundwork was laid for the EO/EG plant and other facilities in partnership with SINOCHEM in September 2022.

◾️BASF News Releases | 21^st Mar 2024 | BASF breaks ground on methyl glycols plant at Zhanjiang Verbund site in China

Hong Kong SAR, China – March 21, 2024 – BASF has broken ground on a methyl glycols (MG) plant at its Verbund site in Zhanjiang, China. The new facility is designed with an annual capacity of 46,000 metric tons and aims to meet the rapidly growing demand for brake fluids in the region. The plant is scheduled to commence operations by the end of 2025.

Utilizing BASF's unique process technology, the new facility will be the only fully backward integrated methyl glycols plant into a steam cracker in China, serving the fast-growing brake fluids market.

◾️Zhanjiang Ecological Environment Bureau |19^th Apr 2024 | Environmental impact assessment document of the first phase of the engineering plastics product optimization project

The first phase of the BASF (Guangdong) integrated project engineering plastics product optimization project is located in the first phase of the BASF (Guangdong) integrated project in the Donghai Island Petrochemical Industrial Park in Zhanjiang City. It is a technical transformation project, mainly to adjust the production plan of production lines 1, 2, and 4 in the engineering plastics workshop, increase the production capacity of red phosphorus masterbatch flame retardant products by 11,000 tons/year (8,000 tons/year in the near future, and 3,000 tons/year in the long term), and reduce the production capacity of general PA/PBT/PBAT products by 11,000 tons/year, and the total production capacity of 160,000 tons/year remains unchanged. The technical transformation does not involve the TPU workshop of the first phase of the project, only the product plan of the engineering plastics workshop is adjusted, and its production process has not changed. The types and total usage of the main raw and auxiliary materials remain unchanged, and there are no new water, gas, and heat nodes and wastewater and waste gas nodes. No technical transformation will be carried out on the auxiliary and public works of the existing approved projects.

#engineeringplastics #syngas  #polyurethane  #tpu  #acrylates  #acrylicacid  #polyethylene  #eoeg  #ethyleneglycol #linde  #basf  #verbund  #zhanjiang  #guangdong #polyamide  #pbt  #pbat 

Lummus Catofin catalytic dehydrogenation and Technip Lliquid steam cracker plants have been added together with their main productions.


#dalian  #hengli  #china  #liaoning  #catofin  #pdh  #dehydrogenation  #propene  #ethylene  #isobutene  #steamcracker  #liquidfeed  #technip 

BASF successfully installed steam cracker module at its Zhanjiang integrated site

20^th Nov 2024 | Source: Zhanjiang Cloud Media | Author: Reporter Chen Yan

Recently, the steam cracker module of BASF’s Zhanjiang integrated base was successfully installed, marking a new milestone in the construction of the project and taking a solid step towards the goal of putting the integrated core into operation by the end of 2025.

Tian Yaqing, senior vice president of integrated project management at BASF's new integrated site in China, said that the modular construction concept adopted by the plant has significant advantages in terms of efficiency, safety and quality. "By using pre-assembled modules, we can simplify the construction process, shorten the project duration and minimize on-site disturbance. This approach not only improves safety through more controlled assembly in a factory environment, but also ensures the stability of the quality of each component."

Currently, BASF's Zhanjiang integrated base is making every effort to build its integrated core, including a steam cracking unit and multiple downstream units for the production of petrochemicals, intermediates, etc.

#steamcracker  #zhanjiang  #basf  #ethyleneplant  #china 

Photos:
▪️ Guangxi Petrochemical's 1.2 million tons/year ethylene cracking unit cracking furnace hoisting operation.
▪️ Builders carry out pipeline welding operations at the 50,000 tons/year hexene-1 unit.
▪️ Builders carried out modular pipeline gallery hoisting operations at the 270,000/600,000 ton/year propylene oxide co-production styrene unit.

Guangxi Petrochemical Refining and Chemical Integration Transformation and Upgrading Project Construction Progress Exceeds Halfway

China Petroleum News | 2024-11-27 16:04 | Beijing

On November 22, the 80-meter-high, 3,200-ton 1.2 million tons/year ethylene cracking unit cracking gas furnace module was in place.

On November 21, the last spherical tank in the chemical pressure tank area was successfully capped. On November 20, all towers of the 50,000 tons/year hexene-1 unit were hoisted.

On November 14, the installation of four modules of the cracked gasoline hydrogenation unit was completed...

Entering November, the Guangxi Petrochemical Refining and Chemical Integration Transformation and Upgrading Project has been successful, and many installation tasks have been completed according to the nodes. At present, the overall progress of the project has been completed by 62.81%, and the construction progress has exceeded half.

In order to improve the project construction progress and ensure the quality and inherent safety of the project, the Guangxi Petrochemical Refining and Chemical Integration Transformation and Upgrading Project strictly implemented the group company's "six-in-one" construction concept at the beginning of the design, and made the construction safer, more efficient and reliable through factory prefabrication and modular construction. In order to further promote factory prefabrication and modular construction, Guangxi Petrochemical has built "second construction sites" of varying sizes near the project construction site in accordance with local conditions - prefabrication yards, of which there are 8 pipeline prefabrication yards alone. The factory prefabrication rate of the steel structure of this project exceeds 95%, and with the concept of deepening factory prefabrication and modular construction, the operating efficiency has been greatly improved, the workload and safety risks on the construction site have been greatly reduced, and civilized construction on site has been further promoted.

#cnpc  #petrochina  #guangxi  #petrochemical  #ethylene  #steamcracker  #hexene  #gasoline  #hydrogenation  #china 

SIPC 1.2 million tonne ethylene project was completed and put into operation in Tianjin

On 13th November the new ethylene complex operated by SIPC, also known as the 'ethylene and downstream high-end new materials industry cluster project', was successfully put into operation and the whole process was completed, producing qualified products. Sinopec INEOS (Tianjin) Petrochemical Co., Ltd. (SIPC) is a joint venture between INEOS and SINOPEC. The project is built in the Nangang area of the Tianjin Economic and Technological Development Zone.

The steam cracker plant with a 1.2 million tonne per year of ethylene is designed to provide 4 million tons annually of high-end chemical products and fine chemical feedstocks to the downstream every year. There are 13 downstream projects including high-density polyethylene, linear low-density polyethylene, ultra high molecular weight polyethylene, polypropylene, acrylonitrile, and polyolefin elastomers (POE).

The new ethylene complex, partly powered by solar and designed as an energy and water efficient project, is integrated with Sinopec Tianjin's 320,000 barrels per day refinery, Sinopec commented. The company uses a combination of Sinopec's own technology and imported technology to produce high-end, differentiated new materials that replace imports and fill domestic gaps.

The project took only 21.5 months from the start of civil construction to mechanical completion, breaking many records for similar projects, including the best overall coordinated control plan, the least number of workers, the deepest degree of factory prefabrication, the largest proportion of modular installation, the highest rate of localization of large equipment, and the widest application of digital intelligence.

#sinopec  #ineos  #sipc  #petrochemical  #ethylene  #ethyleneplant  #steamcracker  #polyethylene  #polypropylene 

8/2/2023 9:45:00 AM | Hydrocarbon Processing

INEOS has completed the formation of a 50/50 joint venture with SINOPEC for the Tianjin Nangang Ethylene Project, announced in December 2022, which is currently under construction by SINOPEC and expected to be on-stream by April 2024.

The petrochemical complex includes a 1.2 mtpa cracker, a new 500ktpa High-Density Polyethylene plant to produce INEOS pipe grade under license and 11 other derivative units.

The completion of the agreement today marks the continued progression of the significant petrochemical deals announced by the parties in July and December last year, and highlights the close relationship and growing collaboration between SINOPEC and INEOS.

#ineos  #sinopec  #tianjin  #sipc  #binhai  #nangang  #hdpe  #ethylene  #steamcracker  #ethyleneplant 

Photo: circulating water plant put online on 30^th Aug 2024

7^th Sep 2024 | Source: DT New Materials, via Sohu.com

The project is related to Sinopec Maoming Petrochemical Co., Ltd., mainly including the construction of a 3 million tons/year catalytic cracking complex, a 1 million tons/year ethylene complex, and supporting public works and auxiliary facilities. The project started in June 2023 and is scheduled to be delivered in mid-2026. The project is mainly funded by its own funds and bank loans. As of June 30, 2024, a total investment of RMB 2.2 billion has been completed.

30^th Aug 2024 | Source: Golden Sheep Network, via Baidu.com

The first unit of the Maoming Petrochemical Refining Transformation and Upgrading and Ethylene Quality Improvement Project was successfully put into use. On the afternoon of August 30, 4 pumps and 10 cooling towers were started at the newly built first chemical water circulation plant of Maoming Petrochemical, and 5 pumps were stopped in the old first circulation.


#sinopec  #maoming  #steamcracker  #ethyleneplant  #ethylene  #fcc #catalyticcracking #china 

Details about Dagang area refinery added.


#massbalance  #tianjin  #binhai  #dagang  #sinopec  #steamcracker  #ethyleneplant  #tianjin 

Steam cracker technology has been identified as supplied by Linde.


#ethyleneplant  #steamcracker  #linde  #dushanzi  #petrochina  #petrochemical 

Yangzi-BASF Light Hydrocarbon Comprehensive Utilization Project with 1 million tonnes steam cracker begins construction, receives environmental impact assessment.

7th Sep 2024 | Source: DT New Materials, via Sohu.com

Yangzi-BASF Light Hydrocarbon Comprehensive Utilization Project

On August 30, 2024, the Yangzi-BASF Light Hydrocarbon Comprehensive Utilization Project officially began construction. The project investment is approximately 9.142 billion yuan, with downstream new materials projects totaling about 25.652 billion yuan. The project
includes construction of three process units and supporting facilities:

° One 1 million tons/year ethylene steam cracking unit
° One 500,000 tons/year gasoline hydrogenation unit
° One 620,000 tons/year aromatics extraction unit

The project is constructed and operated by Nanjing Yangzi-BASF Olefins Co., Ltd., which was newly established on October 24, 2023. The company was formed as a 50-50 joint venture between Sinopec Yangzi Petrochemical Company Limited and BASF-YPC Company Limited.


15th Nov 2023 16:25 | Petrochemical Federation Chemical New Materials Committee | via WeChat.

With a total investment of over 10.3 billion yuan, Nanjing Yangzi-BASF Olefins Co., Ltd. will build a 1 million tons/year steam cracking ethylene plant

On November 13, 2023, the Jiangsu Environmental Protection Public Network released the second public announcement of the environmental impact assessment of the light hydrocarbon comprehensive utilization project of Nanjing Yangzi BASF Olefin Co., Ltd. and put forward suggestions and opinions on the project construction content to all sectors of society.

° Construction unit: Nanjing Yangzi-Yanba Olefins Co., Ltd.
° Project name: Light hydrocarbon comprehensive utilization project
° Construction location: The project area is located in the inspection and safety area of Yangzi Petrochemical; the product tank area is located in the Henghai area of Yangzi Petrochemical; the flare is arranged in the BASF-YPC-Yunnan land.
° Project type: Greenfield project.
° Total investment: 1,030,513 million yuan, with additional environmental protection investment of 262 million yuan;
° Land area: The total land area is 43.3 hectares (33 hectares for Jianan area and 10.3 hectares for Henghai area).
° Number of employees: The labor quota for this project is 207 people.
° Project Overview: The project includes a 1 million tons/year steam cracking ethylene production unit and 4 downstream chemical units; supporting public engineering systems include raw materials, intermediate raw materials, product tank farms, air compressor stations, circulating water fields, power supply systems, flare systems, etc.; and the transformation of existing facilities of Yangzi and BASF-YPC.

It is reported that Yangzi Petrochemical's existing "refinery structure adjustment project" will be completed and put into production before this project is put into production.

After the project is put into production, the refining sector of Yangzi Petrochemical will supply raw materials for the "ethylene cracking unit of this project" and "Yangzi Petrochemical's existing 800,000-ton ethylene cracking unit."

#basf  #ypc  #lighthydrocarbon  #petrochemical  #yangzi  #ethylene  #steamcracking  #gasoline  #aromatics 

7th Sep 2024 | Source: DT New Materials, via Sohu.com

The project is located in Gulei Petrochemical Base, Zhangzhou, Fujian Province, and mainly builds 16 million tons/year oil refining project and 1.2 million tons/year ethylene project. The project is the leading project of Gulei Petrochemical Base, one of the seven major petrochemical industrial bases in China. The first phase of the project mainly includes 9 sets of chemical equipment such as ethylene cracking with an actual processing capacity of 1 million tons/year, with a total investment of 27.8 billion yuan and an annual output of one million tons of ethylene.

The second phase of the Gulei Refining and Chemical Project is jointly constructed by Sinopec Group and Fujian Province. It is planned to build more than 30 refining and chemical units, including 16 million tons/year of oil refining, 1.5 million tons/year of ethylene, 2 million tons/year of aromatics , as well as supporting facilities such as public works and berths at the Gulei Petrochemical Base. On July 16, the second phase of the project was approved by the Fujian Provincial Development and Reform Commission.

#gulei  #sinopec  #petrochemical  #refining  #ethylene  #steamcracking  #oilrefining  #crudeoil 

With a total investment of 27.8 billion yuan, a new million-ton ethylene project was launched.

2024-10-22, Source

The total investment of Luoyang Petrochemical's million-ton ethylene project is 27.8 billion yuan, mainly to build 13 sets of process production units such as 1 million tons/year ethylene, and implement oil refining adaptability transformation at the same time.

On December 22, 2023, China Petroleum & Chemical Corporation and Henan Shenma Guoxing Industrial Investment Co., Ltd. signed an investment cooperation intention agreement. The two parties will jointly invest to establish a joint venture to jointly build the Luoyang Petrochemical million-ton ethylene project and create a first-class green petrochemical advanced materials industry base in China.

On September 12, 2024, Sinopec Group approved the basic design of Luoyang Petrochemical's million-ton ethylene project, marking that the Luoyang Petrochemical's million-ton ethylene project will enter the full construction stage.

The construction content of Luoyang Petrochemical Million Tons of Ethylene Project includes the construction of:
°a new 1 million tons/year ethylene unit,
°a 600,000 tons/year cracking gasoline hydrogenation unit,
°a 400,000 tons/year aromatics extraction unit,
°a 300,000 tons/year m-LLDPE unit,
°a 350,000 tons/year HDPE unit, and
°a 350,000 tons/year #3  polypropylene unit.

The project is scheduled to be completed and put into operation in December 2025.

After the project is put into production, it can sell about 3 million tons of various chemical products each year, increase the output value by 20 billion yuan, drive more than 160 billion yuan of downstream industrial chain investment, and form an industrial cluster of "hundreds of billions of investment and 10,000 jobs.

#luoyang  #petrochemical  #cpcc  #sinopec  #ethylene  #steamcracker  #hdpe  #lldpe  #polypropylene  #polyethylene  #gasoline  #pygas  #hydrogenation  #china  #henan

24 Sep 2024: The construction preparation of the project is progressing in an orderly manner, and the general layout of the construction, construction infrastructure planning, and standardized construction site construction have been completed. The site leveling of Changling North New District has been completed by about 75% , and it is planned to meet the conditions for handover by the end of October 2024. The site clearing and earthwork transportation of the refinery supporting renovation project site are currently being organized. The site leveling of Hunan Petrochemical District 2 has been started, and it is planned to meet the conditions for handover by the end of this year; the construction of three supporting first-class highways related to the project has started. Credit

Sinopec Hunan Petrochemical (Yueyang) ethylene refining and chemical integration project

12 Jul 2024, Sinopec Yueyang ethylene refining and chemical integration project starts trial operation

Recently, with the rise and fall of the 67-ton tamping hammer, Sinopec Yueyang Region (Hunan Petrochemical) 1 million tons/year ethylene refining and chemical integration project started the trial tamping in the Changling North main plant area.

Hunan Petrochemical's 1 million tons/year ethylene refining and chemical integration project is located in Yueyang Green Chemical High-tech Industrial Development Zone and started construction on January 3 this year.

19 Sep 2024, Total investment of 35.68 billion yuan! This million-ton ethylene refining and chemical integration project has made new progress

Hunan Petrochemical's 1 million tons/year ethylene refining project is being accelerated, with a total investment of 35.68 billion yuan and an estimated output value of over 100 billion yuan, which will drive downstream investment of over 150 billion yuan. The project is located in Yueyang Green Chemical High-tech Zone and has completed a number of construction preparations and safety management planning.

◾️ Project name: Sinopec Yueyang 1 million tons/year ethylene refining and chemical integration project

◾️ Project type: Greenfield Construction Project

◾️ Project location: Hunan Yueyang Green Chemical High-tech Industrial Development Zone. This project is distributed in the Changling and Baling areas of the park.
▪️ The Changling section is located in the northeast of the Changling area of the park, referred to as the Xinchang New District, with a land area of 201.05 hectares, all of which are newly acquired land.
▪️ The Baling section is located on the south side of the Baling's refining department, with a total land area of approximately 46.4 hectares, of which 27.26 hectares are newly acquired land; the expansion of the cogeneration unit is located in the thermal power department, with a land area of approximately 19.14 hectares, and does not involve additional land acquisition.

In addition, the off-site project covers an area of 90.57 hectares, involving the acquisition of 25.4 hectares of new land and the use of 65.17 hectares of existing land.

Construction content: This project will build:

◾️ a new 1 million tons/year ethylene unit

◾️ a total of 14 downstream units, including:
▪️ an ethylene unit,
▪️ an EVA unit,
▪️ an HDPE unit,
▪️ an LLDPE unit,
▪️ an aromatics-to-benzene unit,
▪️ a butadiene extraction unit,
▪️ an MTBE/butene-1 unit,
▪️ a pyrolysis gasoline hydrogenation unit,
▪️ an aromatics extraction unit,
▪️ a styrene extraction unit,
▪️ a C5 separation unit,
▪️ a CHPPO unit,
▪️ a phenol/acetone unit,
▪️ a bisphenol A unit.

At the same time, necessary storage and transportation projects, public works, auxiliary facilities and off-site projects will be constructed.

#sinopec  #hunanpetrochemical  #hunan  #yueyang  #ethylene  #refining  #chemicalintegration  #china  #steamcracker

PetroChina Jilin Petrochemicals, manufacturing site have been added and mass balance initialized.

#steamcracking #ethylene  #polyethylene  #abs  #rubber  #crudeoil  #petrochina  #cnpc  #jilinpetrochemical 

Sinopec INEOS (Tianjin) Petrochemical Co., Ltd. and manufacturing site have been added.


#sinopec  #ineos  #tianjin  #petrochemical  #olefins  #steamcracking  #ethylene  #polyethylene  #polypropylene  #hdpe  #lldpe  #poe  #elastomers  #acrylonitriele  #butadiene  #pygas  #aromatics  #mtbe 

Datails about SINOPEC Hainan Refining and Chemical Co., Ltd. and Danzhou complex have been updated.

#sinopec #danzhou  #refining  #chemicals  #steamcracker  #ethylene  #china  

Petrochina Daqing Petrochemical has been created and its site's mass balance initialized.

#daqing #petrochina  #petrochemical  #massbalance  #refining  #crudeoil  #ethylene  #steamcracking  #heilongjiang 

SINOPEC liquid cracker added to Gulei Ethylene Complex Phase II Project in Fujian.
 

#sinopec  #stteamcracker  #naptha  #lpg  #ethylene  #china  #fujian 

Guangxi Huayi Energy Chemical Co., Ltd. and Gas Island Project in Qinzhou have been added.
 

#guangxi  #shanghai  #china  #huayi  #energychemical  #gasislandproject  # coal #coalgasification  #methanol  #ethyleneglycol  #meg  #aceticacid  #coaltochemicals  #coaltomethanol  #coaltoolefins 

Picture: Indian subcontinent refineries, via ppPLUS

India’s dependence on imports to meet its requirements of basic petrochemicals, including polymers, is only expected to rise, despite projects – under implementation and on the drawing boards. This is partly because the historical baggage of poor capacity builds will take time to catch up with rising demand.

In the last few years, however, India’s public sector refiners have climbed on the petrochemicals bandwagon, seeking value-added outlets for refinery streams. They have invested in aromatics (for feeding the polyester value chain), propylene (for polypropylene, PP, and some other chemicals notably, oxo-alcohols and acrylate monomers), linear alkyl benzene (LAB), a key detergent raw material, and a few other projects. And more are to come in the near-term.

There are several commonalities amongst the firm projects. For one, the emphasis seems to be on building the C3 (propylene) value chain. This is not surprising as FCC propylene offers a simple, low-cost route to the olefin and one that can be conveniently retrofitted into existing refinery operations. There is also an overwhelming emphasis on PP production, which may not be wise, as it runs the risk of overbuild should demand growth not pan out as anticipated.

There are other propylene derivatives that can be considered, and these merit attention if not by the refiners themselves then by third party investors for whom it will be more worthwhile. Much will hinge on the commercials of the olefin supply arrangement, but such business models are widely followed, including here in India, let alone in other countries.

Importantly, the government needs to recognise that the chemical industry as a key enabler of modern living, and not a nuisance to be constrained through regulation and red-tape. The priority must be on developing well-developed clusters where not just the petrochemical industry, but also the broad chemical industry – including the fine and specialty chemical industries, wherein India’s competitiveness is well recognised – can locate and start operations in double-quick time. Clusters are efficient and safe locales where the industry can thrive, as several countries have amply shown.
 
India needs a much larger and more diversified chemical industry than it has now. The former it seems is happening. Not so sure of the latter. The herd mentality to investments needs to change. Those who have dared to do so – and there are a few examples – have been amply rewarded. More need to emulate, not imitate, them!

Ravi Raghavan, 12 Nov 2024, Linkedin post.

#india  #petrochemicals  #chemicals  #valuechains  #propylene  #fcc  #refinery  #polyester  #aromatics  #olefins  #polypropylene  #acrylics  #lab  #chemicalindustry  #indianchemicals  #IOCL  #BPCL  #HPCL  #RelianceIndustries  #investment  #specialitychemicals  #finechemicals  #oilrefining  #polymers  #ethylene  #competitiveness 

On Oct 1st, 2024, Technip Energies announced that the Long Son Petrochemicals Co., Ltd. (LSP) olefins plant in Long Son Island, Ba Ria-Vung Tau province,  Vietnam, passed its final performance acceptance test.

Technip Energies provided licensing, engineering, procurement, construction, commissioning, start-up and initial operation for the 1,350,000 tonnes/year cracker. As Vietnam’s first olefins plant, the flexible feed cracker, can utilize both naphtha and liquified petroleum gas (LPG) feeds to produce ethylene, propylene, and butadiene.

The plant successfully started up end 2023 to reach its full capacity shortly after the start-up and pass its first performance test in February 2024. The plant, which broke ground end 2018, includes Technip Energies’ licensed ethylene technology, including Ultra Selective Conversion (USC®) furnaces preferred for high selectivity and low cost, and the Heat-Integrated Rectifier System®, preferred for energy efficient ethylene recovery.

However, Listed Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, has suspended operations at its Long Son Petrochemicals (LSP) complex in order to cope with high production costs and the impact of a downturn in the global petrochemical market.

The suspension, slated to last for at least six months, began in mid-October, only roughly two weeks after LSP commenced commercial operations on Sept 30, with a production capacity of 74,000 tonnes.

A resumption of operations will mainly depend on the spread, according to SCG.

The petrochemical complex uses naphtha, which is a product of fossil fuels, as a key raw material to produce high density polyethylene (HDPE), but the prices of naphtha are expensive.

"The spread between naphtha and HDPE prices is US$300 per tonne because of a slowdown in the global petrochemical market," said Sakchai Patiparnpreechavud, chief executive and president of SCG Chemicals. "If the spread increases to $400 per tonne, we will consider resuming operations at LSP."

The suspension does not mean SCG Chemicals will stop investing in this petrochemical complex, he said.

SCG Chemicals plans to upgrade LSP, enabling it to use ethane, a colourless, odourless, gaseous hydrocarbon, as a raw material because it is cheaper than naphtha.

Mr Sakchai said the company will spend $700 million on the new investment, especially to build an ethane storage facility.

#technip  #scg  #siamcementgroup  #longson  #naphtha  #lpg  #steamcracker  #ethylene  #propylene  #butadiene  #olefins  #hdpe  #ethane  #storagefacility 

Both phase I and Phase II Ethane-to-Ethylene projects have been geographically located. Phase I mass balance has been initialized. 

#petrochina  #dushanzi  #korla  #china  #ethyleneplant  #steamcracker  #ethylene  #polyethylene   

Ethane and propane imports added, more production capacities added as well.

#steamcracker  #pdh  #ethane  #propane  #pdh  #ethylene  #propylene 

Production capacities for ethylene, propylene, LLDPE and styrene have been added. Corresponding technologies have -been identified.

#ethylene #propylene  #styrene  #lldpe 

On Oct. 23, Bora LyondellBasell Petrochemical Co., Ltd. (BLYB) celebrated producing 5 million tonnes of polyolefins since its commissioning, LyondellBasell reports on Linkedin. This news triggered us into creating a model of the Panjin site with a good level of details (illustration above), although some information is still lacking, especially on specific technologies employed. BLYB, a joint venture between LYB and Jincheng Petrochemical, operates one of China’s largest polyolefin production sites in Panjin, Liaoning, with an annual capacity of 1.1 million tons of ethylene and related products.

#lyondellbasell  #jincheng  #petrochemicals  #polyolefins  #china  #blyb  #boralyndellbasell  #ethylene 

Some productions have been added to the site and a few technologies have been identified.

#steamcracker  #kbr  #ethyleneplant  #unipolpp  #wrgrace 

Some productions and consumptions have been added to site.

Corresponding technologies need to be identified.

#sinopec  #zhanjiang  #refinery  #petrochemicals  #zhongke  #steamcracker  #eva  #polyethylene  #polypropylene  #ethyleneglycol  #meg 

HPPO plant, propylene oxide production and imports of naphtha and hydrogen peroxide have been added.


#basf  #antwerp  #belgium  #propyleneoxide  #hydrogenperoxide  #propylene  #ethylene  #hppo  #steamcracker  #naphtha 

Benzene alkylation with crude ethylene technology from Changzou Ruihua Chemical Engineering has been added.

#alkylation #ethylbenzene  #ethylene  #benzene  #changzou  #china  #ruihua  #chemicalengineering #cumene  #propylene 

Benzene alkylation with pure ethylene technology from Changzou Ruihua Chemical Engineering has been added.

#alkylation #ethylbenzene  #ethylene  #benzene  #changzou  #china  #ruihua  #chemicalengineering 

Crude ethylene, a technical grade of ethylene with above 40% by weight of ethylene, has been added.

#ethylene  #impurities  #methane  #ethane  #carbonmonoxide  #propene  #propylene  #nitrogen 

Pure ethylene has been added.

#ethylene #impurities 

Description of the alkylation of aromatic compounds has been updated.

#benzene #cumene  #ethylene  #propylene  #ethylbenzene  #zeolite  #alcl3 

Alterra closes investment round with the expectation to accelerate the commercialisation of its plastics pyrolysis technology

Investors Infinity Recycling, Chevron Phillips Chemical, LyondellBasell, and Neste, along with long-term support from Potenza Capital, have successfully closed their latest round of equity funding in Alterra Energy (formerly Vadxx Energy). This investment round is expected to accelerate the commercialization of Alterra’s plastics pyrolysis technology, designed to transform discarded plastic into valuable raw materials.

Alterra's advanced recycling technology has been modeled on ppPLUS and the mass balance of the company's demo plant in Akron has been created. One main product the technology is producing is plastics pyoil, which may be fractionnated to separate naphtha, which can be used as a feedstock returned to the cracker to produce ethylene among other products. The feedstock the technology is accepting is mostly clean polyolefin waste.

Source: Alterra, 22^nd Oct 2024 & portfolio planning PLUS.

#alterra  #lyondellbasell  #neste  #cpchem  #pyrolysis  #plasticwaste  #advancedrecycling  #molecularrecycling  #chemicalrecycling  #pyoil  #steamcracking  #naphtha  #ethylene  #polyethylene  

The description of a generic ethylbenzene process has been updated.

#eb #ethylbenzene  #alkylation  #benzenealkylation  #ethylene 

The mass balance of Guangdong Petrochemical has been initialized with identification of crude oil imports and the addition of two technologies: Huanqiu Steam Cracking and Grace's Unipol PP with their respective capacities.

#unipolpp  #steamcracking  #ethylene  #huanqiu  #guangdong  #petrochemical  #china  #refining

Huanqiu steam cracking technology has been added as a placeholder. Technology description needs to be developed.


#steamcracking  #petrochina  #cnpc  #steamcracking  #ethylene  #huanqiu 

Pyrolysis Fuel Oil (PFO) has been added.

#fueloil #steamcracking  #petroleumresidue  #ethyleneplant 

SINOPEC Steam Cracking Technology has been added.

#steamcracking  #ethyleneplant  #sinopec  #ethylene  #china 

Purified Ethylene Oxide has been added. 

#ethyleneoxide #ethylene  #oxidationreaction  #highpurityethyleneoxide #purifiedethyleneoxide  #peo 

Purified Ethylene Oxide-Water mixture has been added.

#ethyleneoxide  #ethylene  #oxidationreaction  #ethyleneoxidation  #ethyleneglycols  #meg 

SD EO/EG technology and purified EO and MEG production volumes added.


#ethyleneoxide  #ethyleneglycol  #meg  #scientificdesign  #eoeg 

Mass balance has been initialized with glycol plants capacities.

#glycols  #ethyleneglycol  #meg  #meglobal  #canada  #prentiss 

The Scientifc Design technology to manufacture EG via direct hydrolysis of EO has been added.

Not so many details are available, which need to be improved.

#ethyleneoxide  #ethyleneglycol  #meg  #directhydrolysis  #scientificdesign 

Scientific Design EO Technology added.
Few technology details are available, which needs to be improved.

#scientifidesign  #ethyleneoxide  #ethylene  #oxidation 

The description of the Shell OMEGA process for MEG production has been improved.

#shell #omega  #meg  #ethyleneglycol 

The description of the Shell EO Direct Hydrolysis Process has been updated.

#ethyleneoxide  #ethyleneglycol  #meg  #directhydrolysis  #shell 

A generic EG technology has been created, when the technology owner is not defined.

#ethyleneglycol  #directhydrolysis  #ethyleneoxide 

Description of the Ethylene Glycol via direct EO hydrolysis processhas been updated.

#ethyleneglycol  #ethyleneoxide  #eoeg  #directhydrolysis 

Acetaldehyde has been added.

#acetaldehyde #ethylene  #oxydation 

Shell EO Process description has been updated.

#shell #eo  #ethyleneoxide  #ethyleneoxidation 

Most relevant Ethylene Oxide technologies have been created and are available to model manufacturing sites.

#eo  #ethyleneoxide  #oxidation  #ethylene 

DOW METEOR Ethylene Oxide process description has been updated.

#dow #ethyleneglycol  #monoethyleneglycol  #deg  #teg  #meg  #mixedglycols  #pet  #polyester  #meteor 

DOW Ethylene Oxide only process (METEOR HEXTEO) description has been updated.

#dow  #hexteo  #ethyleneoxide  #ethylene  #meteor  #ethyleneglycol 

Site created.
Most production capacities have been added.
Crackers feedstock details as well as individual cracker capacity are missing.
PAO plant not yet added as the corresponding technology has not yet been added to the database.

#lao  #pao  #polypropylene  #innovene  #kbr  #steamcracker  #olefinplant  #ethylene  #propylene  #alvin  #texas  #ineos

MEGlobal Prentiss site has been added.

#meglobal #dow  #canada  #prentiss  #reddear  #ethyleneglycol  #eoeg 

MEGlobal Canada ULC details have been updated.

#meglobal  #dow  #equate  #eoeg  #ethyleneglycol  #meteor  #canada 

The Mass Balance of Joffre chemical site has been completed, which also includes onsite INEOS LAO plant, the onsite DOW-Nova Ethane Cracker E3 JV and ethylene shipment to nearby DOW Prentiss site from the E3 plant.

#dow  #nova  #canada  #steamcracker  #ethylene  #polyethylene  #unipol  #sclairtech  #technip 

DOW Prentiss site in Canada has been added.

#dowchemical  #canada  #reddear  #polyethylene  #ethyleneglycol  #ethylene 

The description of the ethylene oligomerization process into LAOs has been updated.

#ethylene  #butene  #hexene  #octene  #lao  #linearalphaolefins  #oligomerization 

The site has one ethane cracker and its mass balance has been determined.

#steamcracking  #ethane  #ethylene  #dow  #nova 

The Ethylene 3 JV between DOW Chemicals Canada ULC and NOVA Chemicals Corporation has been added ,as well as the corresponding production site in Joffre, Canada. 

#canada  #dow  #nova  #joffre  #e3  #ethylene3  #steamcracker  #ethyleneplant 

Nova Chemicals Joffre site has been created.

#canada #joffre  #nova  #chemicals  #cracker  #steamcracking  #polyethylene  #ethylene 

MTO process and productions have been added to site and thus mass balance initialized.

#mto  #methanol  #sailboat  #petrochemical  #olefins  #ethylene  #propylene 

The UOP Advanced MTO Process has been added.

#methanol  #mto  #olefins  #ethylene  #propylene 

Mass Balances of Borouge 1, Borouge 2 and Borouge 3 have been completed. Borouge 4 site's model has been initialized but will be finalized when the project comes on-stream. With each further stage, the sites are becoming more complex, as shown in the mass balance table of Borouge 3. The Mass Balances are presented as simplified block flow diagrams (Borouge 1 visual, Borouge 2 visual, Borouge 3 visual). Technologies have been identified for all assets of all three projects as shown for the Borouge 3 technology table. By clicking on the blue 'T' icons in the diagrams or on the technology name in the technology table, the corresponding technology is shown (e.g. Linde Steam Cracker) and by clicking on the green 'F' icons, the flow details for the corresponding asset are displayed.

#polyethylene  #polypropylene  #steamcracking  #ethyleneplant  #steamcracker 

Based on available information, naphtha production and cracking product volumes are not matching. 
· 540,000 BO/day / 25,000,000 tonnes/year of crude oil import (matching based on light crude oil API)
· Three CDU each with 160,000 BO/day capacity (8,333,333 tonnes/year)
· 3,750,000 tonnes of naphtha capacity as cracking feedstock (matching, corresponding to 15 weight-% of Crude Oil). 
· Three crackers with cumulative 2,930,000 tonnes capacity for ethylene production: NOT MATCHING, as three times as much naphtha would be needed compared with ethylene, or 8,800,000 tonnes, corresponding to a deficit of 5 million tonnes of naphtha. 

#naphtha #ethylene  #crackingyield  #adu  #crudedistillation 

We are progressively adding Olefins Solution Polymerisation Processes to the database of processes and technologies.

#solutionpolymerisation  #ethylene  #propylene  #polyolefins  #elastomers  #plastomers 

INEOS Oxide and LyondellBasell have completed the sale of LYB’s Ethylene Oxide & Derivatives (EO&D) business and associated production facilities located in Bayport, Texas to INEOS.

Tobias Hannemann, CEO of INEOS Oxide said, “We are pleased to complete this strategic acquisition in the U.S. INEOS Oxide is a leading producer in Europe and this significant step expands our Ethylene Oxide & Derivatives business into the U.S, which is the world’s largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana.”

“There is available land on the Bayport site for INEOS’ growth aspiration. It is an ideal location to develop our third-party business supporting customers to co-locate and integrate into an existing Ethylene Oxide & Derivatives platform. We look forward to incorporating the business, site and team of very professional and highly motivated people within the global INEOS group.”

The Bayport EO&D business produces high-purity ethylene oxide and associated derivatives. Access to cost-advantaged feedstocks and logistics networks contributes to its excellent performance and market reputation.

Peter Vanacker, CEO of LyondellBasell said, “This divestiture of the EO&D business demonstrates progress against our company strategy and allows us to focus on further strengthening our core businesses. We are confident that the EO&D team will continue to thrive under new ownership and remain committed to collaborating closely with INEOS for a seamless transition.”

The closing of the transaction follows the completion of planned maintenance at the Bayport facility and satisfaction of regulatory and other customary closing conditions.

Source: INEOS Group, Press Releases, 1^st May 2024

#ethyleneoxide  #bayport 

Haldia Petrochemicals, a company based in Kolkata, India, produces polymers and chemicals.

The company has decided to invest in an oil-to-chemicals project in Tamil Nadu.

ABOUT THE PROJECT:
☑ Capacity - 3.5 million tonnes of ethylene and propylene
☑ Cost - $10 Billion

BENEFITS:
Ethylene and propylene are used to make
☑ Shopping bags
☑ Car parts
☑ Water pipes

Navanit Narayan, CEO of Haldia Petrochemicals, said:
"The project will convert crude oil into chemicals to meet the growing demand for polymers in the country."

Source: Governance TamilNadu Linkein Post, April 1^st, 2024

#india  #oiltochemicals  #ethylene  #propylene 
 

On April 1^st, INEOS has completed the acquisition of TotalEnergies’ 50% share of Naphtachimie (720 ktpa steam cracker), Appryl (300 ktpa polypropylene business), Gexaro (270 ktpa aromatics business) and 3TC (naphtha storage, a 50/50 JV between Petroineos and TotalEnergies) announced on July 5^th. These businesses have until today been joint ventures between the two companies. A number of other infrastructure assets have also been acquired including part of TotalEnergies ethylene pipeline network in France.

INEOS will now fully integrate the Naphthachimie, Gexaro and Appryl petrochemical businesses, assets and infrastructure into INEOS Olefins & Polymers South at Lavera in Southern France. Gexaro, which is located on the Lavera refinery site will continue to be operated by Petroineos.

Source: INEOS Press Release, Apr 1^st, 2024

#steamcracker  #aromatics  #polypropylene  #naphtha  #naphtha  #pipeline  #ethylene  #olefins  #refinery