According to Singapore Reuters, China has initially approved the construction of a $20 billion petrochemical complex project in the Shandong Oil Hub, and plans to build a 400,000 barrels per day refinery and an ethylene plant with an annual output of 3 million tons in Yantai.
This is the second major project in the petrochemical industry that Yantai may have ushered in since the Yulongdao Refinery and Chemical Integration Project with a total investment of 387.6 billion yuan was planned last year. The project may help reduce China's petrochemical imports, but it may exacerbate the surplus of refined oil products.
According to sources, the privately-owned aluminum smelting company Shandongnanshan Group in Yantai will be the lead investor in this project with a scale of nearly 140 billion yuan (20 billion US dollars). Other investors include the chemical company Wanhua and the Shandong provincial government.
At present, the representative of the project, Shandong Yulong Petrochemical Co., Ltd. did not immediately comment. The National Development and Reform Commission did not immediately respond to Reuters’ request for comment.
Conversion of old and new kinetic energy
Shandong has the largest refining capacity in the country, with a total of 37 local refining enterprises, and a crude oil processing capacity of 130 million tons per year. Among them, there are 20 companies with a crude oil processing capacity of less than 3 million tons (inclusive), with a production capacity of 50.7 million tons; 11 companies with 3 million to 5 million (inclusive), a production capacity of 42.1 million tons; 6 companies with more than 5 million tons, a production capacity of 36.6 million tons .
However, they are still in a state of chaotic layout and fighting each other. Its outstanding performance is that Shandong local refining has a large number (51 existing) and a small scale (the primary processing capacity is less than 3 million tons per year, accounting for 60%, and the primary processing capacity is more than 5 million tons per year. 20%), distribution scattered (widely distributed in Dongying, Zibo, Binzhou, Weifang, Heze area) pattern. In addition, most refining and chemical companies in Shandong are at the lower end of the value chain, with petrodiesel, naphtha and other primary processed products accounting for more than 80%, while downstream high-end petrochemical products are in serious shortage, with 50% of ethylene dependent on imports and 57% of aromatic hydrocarbons dependent on imports.
There are currently seven petrochemical bases under construction in China, Dalian Changxing Island, Caofeidian in Hebei, Lianyungang in Jiangsu, Ningbo in Zhejiang, Caojing in Shanghai, Huizhou in Guangdong and Gulei in Fujian. However, they are not in Shandong. In recent years, under the impact of large-scale refining and chemical integration projects, the market space has become increasingly narrow. The predicament of Shandong, especially the refining industry, has become increasingly prominent and urgent.
As one of the "three cores", Yantai City has taken on a more important responsibility-to build the old and new kinetic energy conversion engine in Shandong.
Yantai Yulong Island Refinery and Chemical Integration has been launched in the second half of 2019. The total investment of the project is 387.6 billion. The overall process will be designed according to the principle of "less oil, Yifang, and polyene". The main plans are short-term, medium-term, and long-term. three phases. Among them, in the near future (2019~2025): planning 20 million tons/year integrated refining and chemical integration project, light hydrocarbon comprehensive utilization project, ie 1 million tons/year ethane to olefins project, marine chemical integration project, high-end petrochemical and new materials industry The construction of infrastructure such as districts and public works has reached a high starting point for the development of industrial parks.
Source: Mobei Public Account
