On October 24, Shandong Province held a concentrated start of major projects. 496 major projects were started and constructed with a total investment of 544.7 billion yuan. Among them, the eye-catching Yulong Island refining and chemical integration project officially announced the start of construction, and the supporting project was signed.
Yulong Island Refining and Chemical Integration Project, as a “heavy weapon” for the integration of Shandong Province’s local refining, the first phase is located on 2# and 3# islands of Yulong Island, Longkou, Yantai City, Shandong Province. The project construction investment is about 127.4 billion yuan and the construction period is 24. Months, after completion, it will become a large-scale petrochemical project in the forefront of domestic and even international.
Many well-known, high-end large-scale petrochemical project construction is the petrochemical industry development path recognized and respected by the state. This has been verified by the National Development and Reform Commission’s plan to develop seven petrochemical industrial bases in 2015.
However, due to the excess domestic refining capacity over the years, the approval of large petrochemical projects has become increasingly slow and demanding. For this reality, Shandong, which urgently needs the help of large-scale refinery to integrate scattered production capacity, is obviously anxious.
Looking around the land of Qilu, Shandong, which enjoys the “third largest oil refining center in the world”, still lacks a large-scale refining and chemical integration project praised by the industry. The only project in Yantai Yulong Island, which was prepared in 2015, has been stranded and postponed several times.
So, since this year, the Shandong Provincial Party Committee and the Provincial Government have begun multi-dimensional deployment to promote the implementation of the Yantai Yulong Island Refining and Chemical Integration Project.
On February 11, the Shandong Provincial Party Committee and the Provincial Government held a teleconference on the promotion and deployment of the Yulong Island Refining and Chemical Integration Project to deploy the Yulong Island Refining and Chemical Integration Project. The meeting emphasized the implementation of capital, land, energy consumption, park facilities and other element support and policy support, and actively introduce strategic partners and first-class technology and management talents to build a high-end petrochemical industry base.
On June 10, Caixin quoted a source to report that the Yulong Island project was approved by the National Development and Reform Commission. The specific approval time was during the inspection of Premier Li Keqiang from June 1 to June 2 in Yantai and Qingdao, Shandong.
So far, it means that the Yulong Island project has been fully upgraded and has been recognized at the national level. The official start of the Yulong Island refining and chemical integration project on October 24 also confirmed this conclusion.
On the same day, under the witness of Liu Jiayi, Secretary of the Shandong Provincial Party Committee, Li Ganjie, Deputy Secretary of the Provincial Party Committee, and Governor Li Ganjie, 496 major projects were started and construction, and the Yulong Island refining and chemical integration project was listed impressively.
According to the data, the Yulong Island Refining and Chemical Integration Project (Phase I) plans to build a 20 million tons/year crude oil processing capacity, mainly equipped with 10 million tons/year atmospheric distillation unit and 10 million tons/year atmospheric and vacuum distillation unit, light Refining process equipment such as hydrocarbon recovery unit, desulfurization and desulfurization unit, residual oil hydrogenation unit, ethylene, pyrolysis gasoline hydrogenation, aromatic extraction, butadiene extraction, EVA/LDPE and other chemical process equipment, supporting utilities and auxiliary facilities And sea water desalination, sea water intake and drainage facilities.
Various signs show that Shandong, which enjoys the title of the world's third largest oil refining center, has caught up with the "last train" of large refining and chemical industries, and has achieved a new domestic petrochemical pattern.
As early as 2015, the state put forward the "Petrochemical Industry Planning and Layout Plan", Dalian Changxing Island (Western Island), Hebei Caofeidian, Jiangsu Lianyungang, Shanghai Caojing, Zhejiang Ningbo, Guangdong Huizhou, Fujian Gulei seven petrochemical industry bases, high-end large Refining and chemical construction is booming.
For example, Dalian Changxing Island Hengli's 20 million tons/year refining and chemical integration project was fully put into operation in May 2019; Hebei Caofeidian Tangshan Xuyang Petrochemical Co., Ltd. refining and chemical integration project was approved in January this year; Zhejiang Ningbo, Zhejiang The second phase of the petrochemical 40 million tons refining and chemical integration project was officially launched in March. The average refining scale of these approved and newly built single refineries has reached the level of 15 to 20 million tons per year.
However, in terms of total scale, Shandong, which has its own "base" and is currently the largest refining and chemical base, has been tepid in recent years.
Today, the Yulong Island refining and chemical integration project has officially started. The overall process will be designed according to the principle of "less oil, suitable for aromatics, and polyene", import and process Saudi light and heavy conventional sour crude oil, and vigorously develop downstream Intensive processing. The project aims to provide the largest amount of high value-added chemical raw materials while taking into account the quality of oil, and compete for the eighth largest petrochemical industry base in China.
It is reported that the project serves as a model for the conversion of new and old kinetic energy and industrial structure adjustment in Shandong Province, and its construction will drive the integration of the 130 million tons of geo-refining industry in Shandong Province.
The start of the Yulong Island refining and chemical integration project indicates that the integration and transfer of production capacity of small and medium-sized refinery enterprises will accelerate.
As early as 2019, the "Work Plan on Promoting the Integration and Transfer of Production Capacity of Local Refining Enterprises to Achieve High-Quality Development" clearly stated that all parties will jointly establish a 20 billion Yulong Island Refining and Chemical Integration Project Construction Fund, which is mainly used Purchasing local refining capacity indicators. Among them, the government guidance fund has subscribed and contributed 2 billion yuan, and enterprises and other social capital contributed 16 billion yuan.
As of May this year, Shandong Jinshi Asphalt, after reaching an intention to integrate production capacity last year, once again signed agreements with relevant departments for production integration transfer, becoming the first local refinery in the province to formally sign contracts.
Up to now, Shandong Jinshi Asphalt has started the process of dismantling the refining and chemical plant. After the dismantling, it will be integrated into the Yantai Yulong Refining and Chemical Integration Project, which undoubtedly opened the curtain of "de-capacity" in Shandong Province.
According to the list of 9 companies that have reached the intention of integration and transfer in 2019, in addition to Shandong Jinshi Asphalt, Dongying Kelida, Fuyu Chemical, Haike Chemical, Binzhou Zhonghai Fine Chemical, Chengda New Energy, Binyang Fuel, Zibo Xintai Petrochemical, In principle, Dezhou Hengyuan Petrochemical will also start to dismantle outdated oil refining units in 2020.
It is understood that these 9 local refineries have a total production capacity of approximately 25 million tons. According to a ratio of 1:1.25, they will replace 20 million tons of new production capacity, which is just in line with the production capacity requirements of the first phase of the Yantai Yulong Island Refining and Chemical Integration Project.
Of course, this is just the beginning. According to the layout of the province's planning, local refinery enterprises that have not achieved refining and chemical integration of 5 million tons or less will complete the transfer of production capacity integration in batches before the end of 2025.
Source: Chemical Network
