Gi­ant petro­chem­i­cal com­plex be­ing built

China Daily (Hong Kong) - - WORLD - By LI WENFANG liwenfang@chi­nadaily.com.cn

The con­struc­tion of a 35.42 bil­lion yuan ($5.1 bil­lion) Sino-Kuwaiti re­fin­ery and petro­chem­i­cal com­plex, one of the largest in­ter­na­tional projects of its kind in China, kicked off in the coastal city of Zhanji - ang, Guang­dong prov­ince, last week.

Lo­cated on Dong­hai Is­land, the countr y ’s fifth­largest is­land, the project is de­signed to process 10 mil­lion met­ric tons of crude oil and pro­duce 800,000 tons of eth­yl­ene an­nu­ally in its first phase. Such vol­umes would gen­er­ate 60 bil­lion yuan in an­nual out­put. The com­plex is sched­uled to go into op­er­a­tion in 2020.

The project launch marks a ma­jor step in ac­cel­er­at­ing the con­struc­tion of a mod­ern in­dus­trial sys­tem and pro­mot­ing eco­nomic trans­for­ma­tion in Guang­dong , said Zhu Xiao­dan, pro­vin­cial gov­er­nor, at the launch cer­e­mony.

It also serves to help safe­guard the sta­bil­ity of the do­mes­tic oil marke t and n a t i o n a l e n e r g y s e c u r i t y, he said.

The project is set to boost the econ­omy of Zhan­jiang, which is lo­cated in west­ern Guang­dong, as the gov­ern­ment seeks to lift the econ­omy of less-de­vel­oped parts of the prov­ince to pro­mote more bal­anced growth.

Zhu en­cour­aged the lo­cal gov­ern­ment to sup­port the project, cre­ate a sound in­vest­ment cli­mate and at­tract mid- and down­stream petro­chem­i­cal en­ter­prises to Dong­hai Is­land to form an in­dus­trial clus­ter.

T he Na­tional De vel­op­ment and Re­form Com­mis­sion ap­proved the project in 2011. Since then, China Petro­chem­i­cal Corp (Sinopec Group) has op­ti­mized the plans in view of the sig­nif­i­cant in­ter­na­tional oil price de­cline and re­fin­ing over­ca­pac­ity, ac­cord­ing to the group.

The com­pany is the big gest Chi­nese in­vestor in­volved in the project.

Sinopec has planned four “tech­no­log­i­cally ad­vanced and in­ter­na­tion­ally com­pet­i­tive world-class” re­fin­ery and petro­chem­i­cal bases in Zhen­hai, Shang­hai, t h e Ma o m i n g - Z h a n j i a n g re­gion and Nan­jing to push for­ward the na­tional in­dus­trial up­grade strat­egy.

The project in Zhan­jiang is an im­por­tant step in im­ple­ment­ing sup­ply-side re­forms and will ser ve to en­hance the group’s global com­pet­i­tive­ness, said Wang Yu p u , g r o u p c h a i r m a n o f Sinopec.

The com­plex will mainly pro­duce gaso­line that meets the Na­tional VI stan­dard, diesel, jet fuel and chem­i­cal prod­ucts, in­clud­ing poly­eth­yl­ene and polypropy­lene.

The project adopts the most in­ter­na­tion­ally ad­vanced tech­niques in pro­duc­tion con­trol, to be built and man­aged with in­ter­na­tion­ally com­pet­i­tive e n e r g y - s av i n g a n d e m i s - sion-c utting stan­dards, ac­cord­ing to the group.

Ju s t 5 0 0 m e t e r s aw a y from the re­finer y stands Baos­teel Zhan­jiang Iron & Steel’s 50 bil­lion yuan mill.

With its first blast fur­nace go­ing into op­er­a­tion in Septem­ber last year and its sec­ond this July, the mill has an an­nual ca­pac­ity of 8 mil­lion tons of steel prod­ucts.

The com­plex mainly sup­plies steel for au­to­mo­bile and home ap­pli­ance man­u­fac­tur­ing , ship build­ing and oil pro­duc­tion, mainly to ser ve the South China and South­east Asian mar­kets.

Baos­teel Zhan­jiang was the first steel com­pany in China to ap­ply the strictest en­vi­ron­men­tal reg­u­la­tions.

Petro­chem­i­cal and steel plants can share re­sources, such as coal gas pro­duced dur­ing steel man­u­fac­tur­ing.

The lo­cal gov­ern­ment has planned in­dus­trial parks for the petro­chem­i­cal and steel sec­tors to ac­com­mo­date mid- and down­stream en­ter­prises.

Guang­dong Guan­hao High-tech’s and Zhan­jiang Z h o n g z h i Pa p e r ’s p a p e r - mak­ing plants, in­volv­ing in­vest­ments of 7.6 mil­lion yuan and 15 bil­lion yuan re­spec tively, are also sit­u­ated on Dong­hai Is­land.

With the first phase of G u a n h a o ’s p r o j e c t g o i n g into op­er­a­tion in 2014 and con­struc­tion of Zhongzhi ven­ture star ting last year, the is­land is be­com­ing one o f t h e c o u n t r y ’s l a r g e s t high-end paper man­u­fac­tur­ing hotspots.

A c c o r d i n g t o t h e c i t y ’s de­vel­op­ment and re­form com­mis­sion, these mas­sive petro­chem­i­cal, steel and paper-mak­ing projects will con­trib­ute an an­nual in­dus­trial out­put of more than 300 bil­lion yuan in five years.

LANG SHUCHEN / FOR CHINA DAILY

Hu Chun­hua (sec­ond right), Guang­dong Party chief, Zhu Xiao­dan (fifth from left), Guang­dong pro­vin­cial gov­er­nor, and Wang Yupu (cen­ter), chair­man of Sinopec Group, visit the con­struc­tion site of the Sino-Kuwaiti re­fin­ery and petro­chem­i­cal com­plex in Zhan­jiang, one of the largest Sino-for­eign projects of its kind in China, last week.

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