Sunya’s Post

China Petroleum & Chemical Corporation's recently announced the mechanical completion of the second-phase expansion and advanced materials project at its Zhenhai Refinery. This milestone sets new benchmarks for innovation, smart manufacturing, and energy efficiency in large-scale projects. The refinery's capacity has now been upgraded to 40 million tons per year, contributing to the Zhejiang Ningbo Petrochemical Industrial Base surpassing a total refining capacity of 50 million tons annually. The achievement solidifies its position as China's largest, most advanced, and globally competitive petrochemical industrial base. Located in the Yangtze River Delta, a key downstream product consumption hub, the Zhejiang Ningbo Petrochemical Industrial Base plays a vital role in Sinopec's value chain. The second-phase expansion and advanced materials project, with a total investment of 41.6 billion yuan ($5.7 billion), incorporates 18 production units, including atmospheric distillation, catalytic cracking, polypropylene, and propane dehydrogenation units. By emphasizing chemical-focused processes, the project creates multiple high-value-added supply chains. https://lnkd.in/dvD4pHiU

I think the traditional business model of petrochemical industry have changed so far, especially for recently. The business model of petrochemical industry in the past was to receive Naphtha(C) stably from refinery companies, produce petrochemical products, and sell those petrochemical products at a higher price (P). In this model, petrochemical companies faced limitations in purchasing naphtha at lower prices, and consequently, they have been focused on how to sell petrochemical products at higher prices. To meet this goal, the major Korean petrochemical companies concentrated on value proposition, solution providing, and meeting customer unmet needs, aiming to deliver value and thereby command higher prices, which they saw as the key to a successful business model. However, as we moved past the 2010s, with the periods of the Ethylene 1st and 2nd wave, 1) the penetrate of U.S. and Middle Eastern petrochemical companies into the ECC business and the large-scale expansion of PE production, 2) the commercialization and expansion of COTC technology, and 3) the entry and expansion of refinery companies into the petrochemical business, I believe that the traditional business model and value proposition of the petrochemical industry have weakened. It seems that we are now in an era where attempts to command higher prices no longer work. The production cost of petrochemical products from the U.S. and Middle East, based on ECC and COTC, is already more than $300/mt competitive compared to that of traditional petrochemical companies in Asia (based on NCC). As a result, no matter how much Asian petrochemical companies strive to raise prices in the selling price domain, they cannot overcome their cost disadvantage. So, now, the definition of petrochemicals will increasingly be tied to the expansion of the refining industry, with the role of petrochemicals serving more as an outlet for refineries. It seems that the paradigm will shift from the past focus on refining and petrochemicals to a new paradigm of refining and non-refining businesses.

【NEWS UPDATE】🌟 Sinopec Strengthens Global Petrochemical Position with New Ethylene Complex in Tianjin 🌟 https://lnkd.in/gpG-4kS3 On November 13th, Sinopec proudly announced the successful operation of its new ethylene complex in the Tianjin Nangang Industrial Zone. With an impressive annual output of 1.2 million tons of ethylene, this facility is set to revolutionize the production of high-end chemical products and fine chemical raw materials, providing 4 million tons of essential materials to the industry each year. 🌍🏭 This state-of-the-art plant aligns with China’s "14th Five-Year Plan," showcasing Sinopec's commitment to enhancing its petrochemical production capacity and supporting the nation's goal of achieving self-sufficiency in quality chemical raw materials. With this new addition, Sinopec Tianjin Branch’s total ethylene production capacity has now reached 2.5 million tons/year, reinforcing its leadership in the global petrochemical market. 🚀📈 The integration of the ethylene complex with Sinopec Tianjin Refinery’s 320,000 barrels/day capacity enhances operational efficiency, ensuring a reliable supply of raw materials while optimizing energy use. This strategic move not only boosts production but also supports a variety of downstream projects, including high-performance plastics such as linear low-density polyethylene (LLDPE) and versatile polyolefin elastomers (POE). These materials are crucial in sectors like automotive, healthcare, and packaging, highlighting Sinopec's focus on high-value chemical production. 💡🛠️ In addition to production capacity, Sinopec prioritizes environmental sustainability in its design. The facility is partially powered by solar energy, supporting efforts to reduce carbon emissions and improve energy efficiency. Water conservation and energy-saving measures are integral to the plant’s operations, ensuring responsible manufacturing practices. 🌱☀️ As Sinopec expands its footprint in the global petrochemical market, this new Tianjin complex positions the company to thrive in key industries. With a strong emphasis on sustainability, energy efficiency, and high-demand products, Sinopec is poised to meet the evolving needs of various sectors and continue its leadership in the petrochemical industry. 🌐💪 #Sinopec #Petrochemicals #Sustainability #Innovation #ChemicalManufacturing #EnergyEfficiency #Tianjin #LLDPE #POE #GlobalMarket

With a total investment of 27.8 billion yuan, a new million-ton ethylene project was launched. 2024-10-22 The total investment of Luoyang Petrochemical's million-ton ethylene project is 27.8 billion yuan, mainly to build 13 sets of process production units such as 1 million tons/year ethylene, and implement oil refining adaptability transformation at the same time. On December 22, 2023, China Petroleum & Chemical Corporation and Henan Shenma Guoxing Industrial Investment Co., Ltd. signed an investment cooperation intention agreement. The two parties will jointly invest to establish a joint venture to jointly build the Luoyang Petrochemical million-ton ethylene project and create a first-class green petrochemical advanced materials industry base in  China. On September 12, 2024, Sinopec Group approved the basic design of Luoyang Petrochemical's million-ton ethylene project, marking that the Luoyang Petrochemical's million-ton ethylene project will enter the full construction stage. The construction content of Luoyang Petrochemical Million Tons of Ethylene Project includes the construction of: ◾️ a new 1 million tons/year ethylene unit, ◾️ a 600,000 tons/year cracking gasoline hydrogenation unit, ◾️ a 400,000 tons/year aromatics extraction unit, ◾️ a 300,000 tons/year m-LLDPE unit, ◾️ a 350,000 tons/year HDPE unit, and ◾️ a 350,000 tons/year Nr. 3 polypropylene unit. The project is scheduled to be completed and put into operation in December 2025. After the project is put into production, it can sell about 3 million tons of various chemical products each year, increase the output value by 20 billion yuan, drive more than 160 billion yuan of downstream industrial chain investment, and form an industrial cluster of "hundreds of billions of investment and 10,000 jobs. #luoyang #petrochemical #sinopec #ethylene

Synthesis 2024: strategies and projects for the renovation of the petrochemical industry. Key players in the petrochemical industry will gather in St. Petersburg to discuss current issues and challenges on the path to improving the industry. On October 28-29, 2024, representatives of oil companies will demonstrate advanced technologies, approaches and practices at the Congress on Oil Refining and Petrochemicals: Synthesis 2024. The main focuses in the development of the downstream sector in Russia are stimulating import substitution and introducing innovative technologies and processes aimed at improving the efficiency of oil refining. Russian companies are working on developing and implementing their own solutions that will improve the quality and competitiveness of products. The heads of leading oil and gas companies, equipment manufacturers, licensors and specialized associations annually present their projects at the Congress on Oil Refining and Petrochemicals: Synthesis. The event brings together more than 300 participants to expand new opportunities for modernizing the industry and establishing business partnerships. Synthesis 2024 will be held on October 28-29 in St. Petersburg. "Synthesis is certainly an excellent platform for discussing current issues of the entire downstream segment, where industry leaders and decision makers have gathered," Alexander Lazarev, Head of Polyethylene Production at Irkutsk Polymer Plant, shared his impressions of the peculiarity of Synthesis 2023. In 2024, Irkutsk Polymer Plant, together with representatives of Gazprom Neft, LUKOIL, Titan, Baltic Chemical Complex, and Kyrgyzneftegaz, will once again attend the Congress. The two-day program of Synthesis 2024 consists of discussion panels and sessions, where leading industry experts will discuss industry issues: Ways to develop oil refining and petrochemicals in Russia and the CIS in the new realities; Reducing costs in oil refining and petrochemical production; Renovation of the industry amid turbulence in international relations; Implementation of digital technologies and automation of the downstream; Heavy oil and heavy oil residue processing solutions. The Congress will also feature an exhibition where equipment and technology suppliers will present their developments and services. https://lnkd.in/eHp-5-yq

Jilin Petrochemical Refining and Chemical Transformation and Upgrading Project is accelerating Petrochemical Industry Global Alliance | November 9, 2024 At present, the CNPC's Jilin Petrochemical Refining and Chemical Transformation and Upgrading Project with a total investment of 33.9 billion yuan is accelerating. It is expected that 18 main units and 142 small overall projects of the transformation and upgrading project will be delivered before November 30. Before the end of the year, all 21 units will be delivered, and the project will be fully put into production in 2025. After it is put into production, it can achieve an increase of 2.8 million tons of chemical products per year. After the project is put into production, while maintaining the crude oil processing capacity unchanged, it can achieve a reduction of 2.63 million tons/year in oil product output and an increase of about 2.77 million tons/year in chemical products. The effect of "reducing oil and increasing chemicals" is significant; especially after the ABS production capacity reaches 1.8 million tons/year, it will rank first in China and third in the world, highlighting the advantages of the industrial chain; new high-value-added chemical products and new materials such as EVA, bisphenol A, and butadiene rubber will be added. #jilin #petrochemical #china #ethylene Photo: On August 2024, the 45,000 standard cubic meters/hour air separation unit of Jilin Petrochemical was started up.

📢 #China's #PDH plants run rates to drop⬇ in Mar but to rise⬆ in Apr 2024 China's PDH plants' run rates are expected to decline⬇ to 64% in March, down from the average rate of 65.73% in February, primarily due to the routine maintenance. However, the PDH plants plan to ramp up⬆ rates in April on recovering processing margins, based on data from OilChem. Looking ahead, with the restart of PDH plants over April-May, the run rates will rise⬆ again in April to over 65%. At the same time, some new plants are planned to come online in the second quarter, such as Quanzhou Guoheng Chemical, Zhongjing Petrochemical Phase II, Jinneng Chemical (Qingdao) Phase II, and Zhenhua Petrochemical, with a total production capacity of 3.31 million t/y. With the capacity expansion..... 👇 𝐑𝐞𝐚𝐝 𝐌𝐨𝐫𝐞: https://lnkd.in/g-bjfnY3 #ongt #propane #chemicals #pp #propylene #olefin #LPG

Maoming Ethylene Transformation Demonstration Project 7th Sep 2024 | Source: DT New Materials, via Sohu.com The project is related to Sinopec Maoming Petrochemical Co., Ltd., mainly including the construction of a 3 million tons/year catalytic cracking complex, a 1 million tons/year ethylene complex, and supporting public works and auxiliary facilities. The project started in June 2023 and is scheduled to be delivered in mid-2026. The project is mainly funded by its own funds and bank loans. As of June 30, 2024, a total investment of RMB 2.2 billion has been completed. 30th Aug 2024 | Source: Golden Sheep Network, via Baidu.com The first unit of the Maoming Petrochemical Refining Transformation and Upgrading and Ethylene Quality Improvement Project was successfully put into use. On the afternoon of August 30, 4 pumps and 10 cooling towers were started at the newly built first chemical water circulation plant of Maoming Petrochemical, and 5 pumps were stopped in the old first circulation. #sinopec #maoming #steamcracker #ethyleneplant #fcc Photo: circulating water plant put online on 30th Aug 2024

Amur Gas Chemical Plant 43.7% completed — Sibur According to the company’s presentation, the target structure of the project funding comprises 70% of borrowed funds and 30% of shareholders’ investments MOSCOW/ The Amur Gas Chemical Plant (Amur GCP) of Sibur and Sinopec is 43.7% completed to date and progress to more than 60% is expected as of the end of 2024, chief executive of the Russian petrochemical company Mikhail Karisalov told reporters. "We are close to the halfway point for the Amur GCP. Our task is to close the year with the significant progress of more than 60%," Karisalov said. The mechanical completion is scheduled to be achieved in 2026. The company had to establish a new technical and contracting pattern for the plant and find new partners, with the majority of them from Russia, the chief executive noted. According to the company’s presentation, the target structure of the project funding comprises 70% of borrowed funds and 30% of shareholders’ investments. The Amur GCP budget slightly increased due to the postponement of launch dates, inflation and reengineering of the plant. "As regards the financing situation, our current demands are closed on account of a bridge loan raised by our partner and us for the project. We are also financing from the equity with the partner," Executive Director of Sibur Sergey Komyshan added. The Amur GCP is the joint venture of Sibur (60%) and Sinopec (40%) for polyethylene and polypropylene production. The plant production capacity will be up to 2.7 mln metric tons of polymers per year. #business #finance #financialservices

$5bn Long Son Petrochemical Complex to Begin Commercial Operations in Southern Vietnam in October Long Son Petrochemicals Company Limited (LSP), the biggest petrochemical complex in Vietnam, will begin commercial operations from October this year. Thailand’s Siam Cement Group (SCG) Chemicals, the parent company of LSP, on 1st August released its business performance in the first half of this year. The firm revealed that LSP was projected to generate revenue of VND15 trillion (US$592.8 million) this year and VND38 trillion ($1.5 billion) by 2025. The petrochemical complex was initially scheduled for commercial operations in the second quarter of this year. However, it grappled with a technical problem during its trial operation early this year, resulting in its suspension from March to June this year to remedy the problem and improve its operation capacity. The complex, when put into commerical operation, will supply plastic pellets to the domestic and global markets. The global economic downturn and oversupply will be great challenges for the project, according to SCG. LSP, covering 464 hectares of land in Ba Ria - Vung Tau Province, a neighbor of Ho Chi Minh City, is the first integrated petrochemical project in Vietnam. In vietnam, SCG’s revenue totaled nearly VND16.4 trillion ($656 million) in the first six months of this year, rising 12 percent over the year-ago period. Thammasak Sethaudom, president and CEO of SCG, said SCG’s performance in the second quarter of this year was better than that in the previous quarter. The group yielded VND88.38 trillion ($3.5 billion) in total revenue and VND2.6 trillion ($102 million) in profit of last quarter, up three and 53 percent, respectively, over the previous quarter. Its revenue hit VND174 trillion ($7 billion) in the first half of 2024. Tuổi Trẻ Online, 3rd Aug 2024 #polyethylene #polypropylene #steamcracking #vietnam Siam Cement Group (SCG) Long Son Petrochemicals (LSP) Technip Energies Mitsui Chemicals Group Univation Technologies, LLC The US$5 billion Long Son Petrochemicals Company Limited (LSP), the largest petrochemical complex in Vietnam, will begin its commercial operations from October 2024. Photo: Ngoc Hien / Tuoi Tre