Sinopec: Luoyang Petrochemical has made new progress in its million-ton ethylene project

Recently, it was learned that Sinopec Group Corporation recently held a meeting in Beijing, inviting more than 10 experts such as China Chemical Industry Society and China Synthetic Rubber Industry Association, as well as relevant representatives to form an evaluation expert group to conduct a comprehensive evaluation and demonstration
of the feasibility study report of Luoyang Petrochemical million tons of ethylene project.

At the meeting, the evaluation expert group listened to the relevant reports of Luoyang Petrochemical, Sinopec Engineering Construction Company and Luoyang Engineering Company on the project, and focused on the comprehensive evaluation of the necessity of project construction, raw materials, product solutions, markets, process technology, etc.
, and formed opinions
.
After the meeting, the relevant will revise and improve the feasibility study report according to the opinions of the expert group, and finally form and issue an evaluation report to promote the project to enter the feasibility study report approval process
.

Luoyang Petrochemical One Million Ton Ethylene Project completed the feasibility study report in May this year and submitted it to the headquarters for review, and started the feasibility study report demonstration work
in mid-June.
After the completion of the project, it will accelerate the transformation and development of Luoyang Petrochemical and enhance the ability of enterprises to resist risks, thereby driving the transformation and upgrading of the petrochemical industry in the province and promoting the high-quality development of
the manufacturing industry in the central region.

The report of the 12th Municipal Party Congress pointed out that carrying out industrial co-construction is an important starting point
for promoting the high-quality development of the manufacturing industry.
Focusing on the theme of building a closely coordinated industrial circle, Luoyang will accelerate the construction of Luojiao high-end petrochemical industrial belt, actively carry out the preliminary work of Luoyang Petrochemical million-ton ethylene, and strive to promote the completion and production
of major projects such as million-ton ethylene by 2025.

The construction of Luoyang million tons of ethylene project occupies an area for relocation

It is reported that according to the construction progress of Luoyang Petrochemical Million Ton Ethylene Project, the Luoyang Petrochemical Ethylene Project Leading Group decided to start the relocation of the area occupied by the construction of Luoyang Petrochemical Million Ton Ethylene Project after research, and issued relevant announcements
on October 21.

Relocation range: from Luoji Expressway and Century Avenue North Extension Line in the west, to Jianxigou in the east, from the North Ring Branch Line in the north, to Luoyang Petrochemical Railway marshalling station
in the south.

Basic information of Luoyang million tons of ethylene project

It is understood from public information that the ethylene project is located in the petrochemical park of the advanced manufacturing development zone of Mengjin District, Luoyang City, with a planned area of about 280.
92 hectares and the nature of the land is petrochemical industrial land
.

It mainly builds 13 sets of process equipment such as 1 million tons/year steam cracking plant, including 1 million tons/year steam cracking plant and subsequent high-performance metallocene polyethylene m-LLDPE, full-density polyethylene, high-performance multi-peak high-density polyethylene, high-performance copolymer polypropylene, high-impact polypropylene, ethylene-vinyl acetate polymer EVA, ethylene oxide, acrylonitrile, acrylonitrile-butadiene-styrene ABS, hydrogenated styrene-butadiene block copolymer SEBS and other devices and supporting public works
。 The total investment of the project is 26.
02 billion yuan, and after completion and operation, the annual operating income is expected to be 20 billion yuan, and the tax revenue can be 1.
8 billion yuan
.

As early as December 27 last year, Luoyang Natural Resources and Planning Bureau of Luoyang City explained the approval of the ethylene project land, which mentioned that the project has submitted for approval of 803.
6 mu of construction land, and also plans to apply for approval of the first batch of urban construction land of 822.
6 mu
in 2022.

What is the significance of this ethylene project for the chemical market in central China?

It is understood that the dual control of energy consumption under the trend of "dual carbon" has led to the current stricter approval of new chemical projects in many provinces in China, and it is difficult to obtain smooth policy support
if it is not a "provincial" key project or a "national" key project.
In particular, the "two highs and one capital" project is basically unable to obtain approval
at present.
In this context, the development progress of new projects in China Chemical has been significantly delayed, and no new large-scale projects have appeared
for a long time recently.
The new million-ton ethylene project in Henan may be the only ethylene plant in Henan, which will largely drive the development of
the chemical industry in central China.

It is reported that on September 30, 2022, an oil refining enterprise in Henan successfully obtained the permitted qualification approved by the state for the million-ton ethylene project, and later to build one million tons of ethylene, and downstream polyethylene, polypropylene, ethylene oxide, EVA, SEBS, pure benzene, toluene, xylene and other related products, truly realized the transformation and development from oil refining to chemical industry chain, and became a comprehensive "refining and chemical integration" production enterprise
.