MOSCOW (MRC) -- Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I), according to Indian Chemical News.
Under the contract, the Group will provide EMHCC with BEPC services for the project. The main scope of the services includes the basic design, engineering, procurement and construction of all the process units, utilities and infrastructures. The contract value is estimated to be multibillion USD.
The project, which remains subject to final investment decision, will be located in Daya Bay Petrochemical Park, Huizhou, Guangdong, China.
The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.
As MRC informed before, ExxonMobil, the US energy major, is considering whether to close down its Slagen oil refinery in Norway, which has a capacity to process 120,000 barrels of crude per day, turning the site into an import terminal. The refinery at Slagentangen near Toensberg in south-east Norway was built in 1961 and process crude oil from the North Sea, exporting about 60% of the output, according to Exxon.
Ethylene and propylene are feedstocks for producing PE and PP.
According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
EMHCC is a wholly-owned subsidiary established by Exxon Mobil Corporation (ExxonMobil) in China.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.