MOSCOW (MRC) - China Petroleum and Chemical Corp, also known as Sinopec, the world's petrochemical major, has launched the first phase of the Gulei refining complex in Zhangzhou city in China’s southeastern Fujian province, reported Reuters with reference to the company's statement on Thursday.
The refining complex, a 50:50 joint venture between Sinopec’s Fujian Petrochemical Company Ltd and Taiwan Xuteng Investment Company Ltd, invested 27.8 billion yuan (USD4.28 billion) in the first phase.
That will result in an 800,000 tonnes per annum ethylene plant, a 600,000 tonnes per annum styrene unit and seven other downstream petrochemical units, Sinopec said.
The complex targets to churn out 18 chemical products, including polypropylene (PP), ethylene glycol and styrene, with total output reaching 3 million tonnes per year.
“The launch of the project will provide high-quality raw materials for industries such as plastics, rubber, textiles, clothing, electronics and instrument manufacturing in Zhangzhou and the surrounding areas,” said Sinopec.
Sinopec said it is accelerating development of the second phase of the project, which will boost annual ethylene capacity at the complex to 1.4 million tonnes and drive total chemical output to 4.2 million tonnes.
As MRC informed earlier, BASF and Sinopec will further expand their Verbund site operated by BASF-YPC Co., Ltd. (BASF-YPC), a 50-50 joint venture of both companies in Nanjing, China. It includes the capacity expansion of several downstream chemical plants.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC