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10 large-scale petrochemical projects around the world are about to start production

 Last Update: 2022-08-23
 Source: Internet
 Author: User

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Large-scale petrochemical projects have a long construction period, especially overseas petrochemical projects, and the overall progress is likely to be delayed

Taking the ethylene project as an example, the core equipment is the cracking furnace and the cracking gas compressor, and at the same time, there are many fine chemical products downstream of ethylene.
investment
.
Therefore, large-scale petrochemical projects are capital-intensive and technology-intensive industries, and the production schedule of the project is generally delayed than expected; from the construction of the project to the final production, it often takes as little as 3-5 years to as much as 10 years
.
Compared with overseas petrochemical projects, the domestic supporting facilities are more complete, the investment cost is low, the project construction is fast, and the competitiveness is significantly enhanced
.

It is expected that the upstream will operate with low inventory, actively increase the proportion of contracts, and reduce the proportion of spot goods
.
In the future, the marginal impact of demand on petrochemicals will increase.
Under the circumstance that the focus of production costs is shifted downward, projects with growth and competitiveness will win
.
Since 2020, the petrochemical industry has entered the peak period of plant commissioning, and the market supply has increased
.

Looking forward to 2020-2021, there will still be multiple sets of refining and ethylene projects put into operation, but we believe that the current market price has already reflected future market expectations in advance, and there is still the possibility of delays in many projects
.
Because, we believe that the petrochemical industry as a whole will enter the era of low profit in the future, but large-scale refining and chemical plants will stand out in the market competition with cost advantages and growth potential
.

1.
Regarding the large-scale petrochemical projects to be put into operation in 2020-2021, there are mainly:

1.
A 50% joint venture project (PIC project) between Petronas and Saudi Aramco
.

Among them, Pengerang Refining Company Sdn.
Bhd.
is 15 million tons/year of oil refining, and Pengerang Petrochemical Company Sdn.
Bhd.
is 1.
3 million tons/year of ethylene
.
The project was originally planned to be put into operation in early 2019, but in April 2019, an atmospheric residue hydrodesulfurization (ARDS) unit of the project was shut down after an explosion.
Petronas announced that both ARDS units in the refinery needed to be upgraded, The first set of ARDS is expected to be operational in June 2020
.
And according to Saudi Aramco's prospectus, the project is scheduled to run at full capacity in the second half of 2020, and we expect the project to be delayed with a high probability, with less impact on the market in the first half of 2020
.

2.
Saudi Aramco Jazan Petrochemical Project
.

The project is 20 million tons/year of oil refining, and 1 million tons/year of PX is supported at the same time, and 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 was up and running, about a year behind schedule
.
However, Jazan's geographical location is relatively close to the Yemeni border.
Considering the safety issues of the refinery, it is expected that it will be difficult to start production smoothly in the short term
.
According to Saudi Aramco's latest prospectus, we expect to run at full capacity in the second half of 2020
.

3.
Zhejiang Petrochemical refining and chemical integration project
.

The trial operation was carried out in May 2019.
On October 4, the cracking gas compressor unit of Zhejiang Petrochemical's 1.
4 million t/a ethylene plant successfully completed the first trial operation, marking that the project has entered the stage of commissioning and feeding
.
Zhejiang Petrochemical is a large-scale refining and chemical integration project put into production at one time 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, and the progress of catalytic reforming and catalytic cracking will be accelerated and related device load
.
We believe Zhejiang Petrochemical is expected to be fully operational in the first half of 2020
.

4.
Hengli Petrochemical 1.
5 million tons/year ethylene
.

In May 2019, the 20 million tons/year oil refining link achieved full capacity in the whole process; the ethylene link, on November 25, 2019, the first line of ethylene glycol was completed
.
We expect 1.
5 million tonnes/year of ethylene to start production in the first half of 2020
.

5.
Hengyi Petrochemical Brunei 8 million tons/year oil refining project
.

On November 3, 2019, the "PMB petrochemical project" realized the whole process of the factory and was fully put into operation, 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 full handover of the main unit was completed in July, and all units were transferred to the linkage test phase in the same month; in September, the atmospheric and vacuum units produced qualified intermediate products
.

6.
Turkey STAR petrochemical project
.

A $6.
3 billion 10 million ton/year oil refining project invested by the State Oil Company of Azerbaijan (SOCAR)
.
The STAR refinery is the largest new refinery built in Europe in the past few decades and the first in Turkey in the past 30 years
.
All equipment at the STAR refinery was commissioned by the end of March 2019
.
The STAR refinery delivered the first batch of Petkim naphtha to the market in January, and its diesel and jet fuels entered the market in February
.
On the downstream side, BP and Socar Turkey plan to build a new PX/PTA plant.
The project plans to invest 1.
8 billion U.
S.
dollars to build 840,000 tons/year of PX and 1.
25 million tons/year of PTA.
The project construction is planned to be completed in 2023
.

7.
Zhanjiang Zhongke Refinery
.

The total investment of the project is 38.
55 billion yuan, and it will build 10 million tons/year of oil refining and 800,000 tons/year of ethylene.
It mainly produces gasoline, diesel, aviation kerosene and other oil products and chemical products such as polyethylene, polypropylene and ethylene oxide
.
The project has a total of 31 sets of main units.
On November 30, Zhongke Refinery's 200,000 tons/year polypropylene unit, 350,000 tons/year polypropylene unit, and 350,000 tons/year high-density polyethylene unit were 7 sets of production units.
As well as a number of production auxiliary projects to achieve engineering handover, the project is planned to be fully completed and handed over by the end of 2019
.
We believe that the project is expected to start driving in the second half of 2020, and the main impact on the market will be in 2021
.

8.
Gulei refining and chemical integration project
.

The estimated total investment of the project is 27.
838 billion yuan, including 800,000 tons/year ethylene steam cracking, 300,000 tons/year pyrolysis gasoline hydrogenation, 250,000 tons/year aromatics extraction, 90,000 tons/year 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 plants and supporting public auxiliary projects
.
On October 10, 2019, the first large-scale equipment of the Gulei refining and chemical integration project, the quenching water tower of the 800,000-ton/year ethylene plant, arrived at the port near Gulei, marking the project's large-scale equipment modular construction and hoisting work
.
We expect projects to impact the market beyond 2021
.

9.
Satellite Petrochemical Lianyungang 1.
25 million tons/year ethylene project
.

The project uses ethane and light hydrocarbon cracking, and downstream supporting products such as polyethylene, EO/EG, and acrylonitrile
.
At present, the storage tank area of the project has been installed, the wharf is under construction, and the main installation area has entered the comprehensive civil construction stage.
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 ethane export facility in the United States, and we expect full production in the first half of 2021
.

10.
Lianyungang Shenghong Refinery
.

The project includes 16 million tons/year oil refining, 2.
8 million tons/year paraxylene, 1.
1 million tons/year ethylene and downstream derivatives, supporting 300,000-ton crude oil terminal and utility island,
etc.
On November 18, 2019, the 1 million-ton ethylene glycol project broke ground, and the Shenghong refining and chemical integration project was listed as a major project in Jiangsu Province.
It will be completed and put into production in 2021
.
We expect the impact on the market to be in 2022 or beyond
.

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