From 2020, the petrochemical industry will enter the peak period of plant commissioning, and future market supply will increase. Looking forward to 2020-2021, there will still be many sets of oil refining and ethylene projects put into production, and the current market price has already reflected the future market expectations in advance. In the future, petrochemicals will enter the era of low profits as a whole, but the cost advantages and growth of large-scale refining and chemical plants will stand out from the market competition.
The large-scale petrochemical projects that will be put into production in 2020-2021 include:
1.PIC project
A 50% joint venture (PIC project) between Petronas and Petro Aramco.
Among them, Pengerang Refining Company Sdn. Bhd. Is 15 million tons / year oil refining, and Pengerang Petrochemical Company Sdn. Bhd. Is 1.3 million tons / year ethylene. The project was originally planned to be put into operation in early 2019, but it was closed after the explosion of an atmospheric residue hydrodesulfurization (ARDS) unit of the project in April 2019. National Petroleum Corporation of Malaysia announced that both ARDS units of the refinery need to be upgraded The first set of ARDS is expected to be put into use in June 2020. And according to the Saudi Aramco prospectus, the project is scheduled to run at full capacity in the second half of 2020. It is expected that the project will still be delayed with a high probability and will have less impact on the market in the first half of 2020.
2. Saudi Aramco Jazan Petrochemical Project
The project is 20 million tons / year oil refining, while supporting 1 million tons / year PX, the project investment is about 6 billion US dollars. Saudi Aramco announced in the second quarter of 2019 that the utility system at the refinery in Jazan has been put into operation, about a year later than originally planned. However, Jazan's geographical location is closer to the border with Yemen. Considering the safety of the refinery, it is expected that it will be difficult to put into production in the short term. According to Saudi Aramco's latest prospectus, it is expected to operate at full capacity in the second half of 2020.
3. Turkey STAR Petrochemical Project
The Azerbaijan State Petroleum Corporation (SOCAR) invested US $ 6.3 billion in a 10 million ton / year oil refining project. The STAR refinery is the largest new refinery in Europe in the past few decades and the first new refinery in Turkey in the past 30 years. All equipment of the STAR refinery has been put into operation at the end of March 2019. The STAR refinery delivered the first batch of Petkim naphtha to the market in January, and its diesel and aviation fuels entered the market in February. Downstream, BP and Socar Turkey plan to build a new PX / PTA plant. The project plans to invest US $ 1.8 billion, build 840,000 tons / year PX and 1.25 million tons / year PTA, and the project construction is planned to be completed in 2023.
4. Hengyi Petrochemical Brunei 8 million tons / year oil refining project
On November 3, 2019, the "PMB Petrochemical Project" realized the full process of the plant and fully put into production, and successfully produced gasoline, diesel, aviation kerosene, PX, benzene and other products. The Brunei Refining and Chemical Project completed the handover of public works in March this year; the completion of the full handover of the main plant in July, and all the devices were transferred to the linked commissioning phase in that month;
5. Zhejiang Petrochemical Refining and Chemical Integration Project
Trial operation in May 2019. On October 4, Zhejiang Petrochemical's 1.4 million ton / year ethylene unit cracked gas compressor unit was successfully commissioned at one time, marking that the project has entered the commissioning phase. Zhejiang Petrochemical is a large-scale refining and chemical integration project that has been put into operation in a complete sense. After the hydrogen production link of the project is completed, gasoline and diesel refining and naphtha refining can be carried out. The subsequent progress of catalytic reforming and catalytic cracking Device load. Zhejiang Petrochemical was fully commissioned in the first half of 2020.
6. Zhanjiang Zhongke Refinery
The total investment of the project is 38.55 billion yuan to build 10 million tons / year of oil refining and 800,000 tons / year of ethylene. It mainly produces oil products such as national VI gasoline, diesel oil, aviation kerosene, and chemical products such as polyethylene, polypropylene, and ethylene oxide. The project has a total of 31 main units. On November 30, 7 sets of production units including Zhongke Refining and Chemical's 200,000-ton / year polypropylene plant, 350,000-ton / year polypropylene plant, and 350,000-ton / year high-density polyethylene plant As well as a batch of production auxiliary projects to achieve the handover of the project, the project is scheduled to be fully completed by the end of 2019. The realization of driving in the second half of 2020 will mainly affect the market in 2021.
7. Gulei Refining and Chemical Integration Project
The estimated total investment of the project is 27.838 billion yuan, which is 800,000 tons / year of ethylene steam cracking, 300,000 tons / year of cracking gasoline hydrogenation, 250,000 tons / year of aromatic hydrocarbon extraction, 90,000 tons / year of butadiene extraction, 300,000 tons / year ethylene-vinyl acetate resin (EVA), 27 / 500,000 tons / year ethylene oxide / ethylene glycol (EO / EG), 600,000 tons / year styrene (EBSM), 350,000 tons / year Polypropylene (PP) and other chemical installations and supporting public auxiliary projects. On October 10, 2019, the first large-scale equipment of the Gulei refining and chemical integration project-the 800,000-ton / year ethylene plant quenching water tower arrived at the port near Gulei, marking the project's large-scale equipment modular construction and hoisting work. It is expected that the project will affect the market after 2021.
8. Satellite Petrochemical Lianyungang 1.25 million tons / year ethylene project
The project uses cracking of ethane and light hydrocarbons, with downstream products such as polyethylene, EO / EG and acrylonitrile. At present, the storage tank area of the project has been installed, and the wharf is under construction. The main device area has entered the stage of full civil construction. It is expected to enter the trial production stage after completion in the third quarter of 2020. The project needs to be synchronized with the construction of the US ethane export facility, and it is expected to be fully operational in the first half of 2021.
9. Hengli Petrochemical 1.5 million tons / year ethylene
The 20 million ton / year oil refining link will achieve full capacity in May 2019; for the ethylene link, the ethylene glycol line 1 will be handed over on November 25, 2019. 1.5 million tons / year of ethylene will be put into production in the first half of 2020.
10. Lianyungang Shenghong Refinery
The project includes 16 million tons / year of oil refining, 2.8 million tons / year of para-xylene, 1.1 million tons / year of ethylene and downstream derivatives, supporting 300,000 tons of crude oil terminal and public engineering island. On November 18, 2019, the 1 million ton ethylene glycol project broke ground, and the Shenghong Refining & Chemical Integration Project was listed as a major project in Jiangsu Province. Construction started on December 14, 2018. It is currently in the early stage of construction and is expected to be It will be completed and put into production in 2021. We expect the impact on the market to be in 2022 or later.
