MOSCOW (MRC) -- China's private refiner Shenghong Petrochemical, a subsidiary of textile giant Shenghong Group, has started trial operation at its greenfield refining complex in east China, reported Reuters with reference to industry sources.
The refining complex, with a daily crude oil processing capacity of 320,000 barrels, was initially scheduled to begin operating in late 2021.
Shenghong, based in Lianyungang port of Jiangsu province, will be one of the two major greenfield refineries expected to start up this year.
PetroChina's Jieyang refinery and chemical complex, in the southern province of Guangdong, is expected to start trial production in the third quarter, said another industry official.
Traders and analysts expect Shenghong to enter commercial operation in the second half of this year.
The refiner has received 7.95 MMtons of crude oil import quotas from the Ministry of Commerce for 2022.
Apart from the refinery, the 66.7 B yuan (USD9.93 B) Shenghong Petrochemical complex also includes a 2.8-MMtpy aromatics unit and a 1.1 MMtpy ethylene plant, according to the company website.
As MRC informed before, initially Shenghong Petrochemical planned to start test runs at its 320,000-bpd crude unit in August or September, 2021.
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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.