What exactly is the refining and chemical integration project that Dongfang Shenghong borrowed nearly 20 billion yuan?

Oriental Shenghong announced on July 6 that the company’s cumulative new loan amount from January to June 2022 was 19.
771 billion yuan, accounting for 67.
23% of the net assets at the end of 2021
.
The new loan is mainly used for the construction of major projects such as the 16 million-ton refining and chemical integration project of Shenghong Refining and Chemical (Lianyungang) Co.
, Ltd.
, of which the Shenghong refining and chemical integration project was successfully commissioned in May
.
The company's financial position is stable.
At present, all debts are repaid on time.
The above-mentioned new borrowings will not adversely affect the company's operation and solvency
.

It is reported that the construction of major projects such as Shenghong Refinery (Lianyungang) Co.
, Ltd.
's 16 million-ton refining and chemical integration project mentioned here includes POSM and polyol projects in addition to large refining and chemical projects
.

Jiangsu Hongwei is a wholly-owned subsidiary established by Shenghong Refining and Chemical (Lianyungang) Co.
, Ltd.
This time, it plans to invest in the construction of POSM and polyol projects in the Lianyungang Petrochemical Industry Base, the National East-Central-West Regional Cooperation Demonstration Zone in Lianyungang City.
The project relies on the base For the chemical raw materials of the internal refining and chemical integration project, build a set of 508,000 tons/year ethylbenzene unit, a set of 20/450,000 tons/year POSM unit, a set of 112,500 tons/year PPG unit, a set of 25,000 tons/year year POP installations
.

The construction site is located in the petrochemical industry base of Xuwei New District, Lianyungang, south of National Highway 228, west of Suhai Road, and north of Xi'an Road.
The construction time is 36 months, and the total investment is estimated to be RMB 6.
034 billion
.

The main project includes 508,000 tons/year ethylbenzene (EB) unit, 20/450,000 tons/year propylene oxide/styrene (POSM) unit, 112,500 tons/year polyether polyol (PPG) unit, 25,000 tons/year /year Polymer Polyol (POP) installations
.

Main product process: POSM unit adopts co-oxidation propylene oxide co-production styrene technology transferred by Spanish REPSOL (Repsol) company; ethylbenzene unit mainly adopts EBOneTM process of Lummus Technology
.

The characteristics of the project are to use the ethylene, propylene and benzene of the Shenghong refining and chemical integration project for deep processing, to produce propylene oxide and styrene through co-oxidation method, and to further produce polyether polyol and polymer polyol products, extending the refining and chemical industry chain.
, in line with the needs of the development of the industrial chain of the Lianyungang Petrochemical Industrial Base
.

After the implementation of this project, Dongfang Shenghong will form the "propylene-acrylonitrile" propylene industry chain of Sierbang Petrochemical, the "propylene-phenol/acetone" industry chain of Shenghong Refinery + "propylene-propylene oxide- Polyether polyol" propylene industry chain
.

In addition, Shenghong has started rapid implementation in at least three directions:

One is to focus on the new energy field, deploy hydrogen energy, wind energy, solar energy and supporting new material projects, and build a million-ton world-class EVA photovoltaic material production base, lithium battery diaphragm materials, electrolytes and hydrogen fuel cell proton exchange membranes and other new energy major projects demand item;

The second is to focus on the field of high-performance new materials, lay out the construction of the largest POE industrialization device in China, the first domestic EMAA/EnBA and EVOH industrialization device, special engineering plastics nylon 66, special polyester PETG and special rubber and other major national strategic needs projects;

The third is to focus on the low-carbon green industry field, and to build a million-ton PBAT degradable plastic, comprehensive utilization of carbon dioxide, recycling and purification and other environmentally friendly new material projects
.

In addition, on May 16, 2022, the first batch of core main units of Shenghong's 16 million tons/year refining and chemical integration project was successfully commissioned in Xuwei New Area of ​​Lianyungang, which marked the official start of production of the largest single-process refining and chemical integration project in China.
It is of great significance to promote the transformation and upgrading of the national manufacturing industry and achieve high-quality development of the industry?

The total investment of Shenghong refining and chemical integration project is about 67.
7 billion yuan, with an annual crude oil processing capacity of 16 million tons.
The core raw material platform is also a key core project that runs through the integrated layout of the entire industry chain and builds a world-class new energy and new material industry cluster
.

As a key support and promotion project of the national "Petrochemical Industry Planning and Layout Plan", Shenghong Refinery is positioned as a "powerful basic raw material guarantee platform", which will help Shenghong to penetrate the entire industrial chain layout of "refining + polyester + new materials".
And innovatively create a new model of aromatic hydrocarbon and olefin "double chain" and extension development
.

The commissioning of the project is an all-round strengthening, extension and supplementary chain for Shenghong's industrial map
.
On the one hand, it opens up the industrial chain of crude oil refining and high-end chemical industry, greatly makes up for the domestic supply rate of high value-added and scarce chemical products such as olefins and aromatics, and injects strong impetus into the cultivation of strategic emerging industries; on the other hand, the project relies on The independent and controllable high-end industrial chain of "crude oil-aromatic hydrocarbons/olefins-PTA/ethylene glycol-polyester new materials" can realize the mutual supply of more than 80% of raw materials and products in the Lianyungang petrochemical industrial base, which is beneficial to expanding domestic demand and reducing international Market dependence, accelerating the formation of a domestic and international "dual circulation" pattern will play a strong role in boosting
.

Shenghong refining and chemical integration project has been committed to building a world-class refining and chemical project with global competitiveness at the beginning of planning.
In terms of process technology and equipment selection, it has always focused on the international frontier, high-standard layout and construction, combined with domestic refined oil products.
And the market situation of new material products, according to the concept of "more oil, less oil, molecular refining", the proportion of high value-added and in short supply chemical products will be increased from about 50% to more than 70%
.

According to reports, the project's safety and environmental protection investment is as high as 11 billion yuan, accounting for 16% of the total investment.
The environmental protection investment quota and proportion are at the leading level in the industry, and the environmental protection process technology, equipment advancement and energy consumption and emission indicators are better than national standards
.
Through the integrated production of upstream and downstream of the combined plant, the project realizes the regeneration and recycling of "three wastes", greatly reduces energy consumption and exhaust gas emissions, and the reuse rate of reclaimed water reaches 85%; the ethylene plant innovatively uses a refrigeration compressor and an ethylene tower to form a heat pump system.
It can save nearly 15% of energy consumption and reduce CO2 emissions by 2 million tons per year, which is equivalent to planting 20 million trees
.

At present, Shenghong is accelerating its layout in three major directions, including new energy, high-performance new materials, and low-carbon green industries.
As the core raw material supply platform for strategic transformation, Shenghong Refinery will be the main force to carry out the implementation of this strategy
.
The project's rich products and high-quality production capacity can form a world-class new energy and new material industry cluster with downstream industries with a complete internal industrial chain, strong market competitiveness and advanced technology
.

After the refining and chemical project is put into operation, it will provide a rich "chemical raw material library" for the "Yanchain" development of new energy materials
.
The basic raw materials such as propane, vinyl acetate and acetone produced by Shenghong Refinery are continuously transported to Sierbang to produce high value-added photovoltaic grade EVA resin, acrylonitrile, MMA (methyl methacrylate) and other new energy materials; The product paraxylene is supplied to the downstream Honggang Petrochemical for the production and development of new polyester materials; the by-product n-butane can be used for the production of PBAT degradable plastics, helping Shenghong to build a million-ton green degradable material project.
The advantages of industrial clusters continue to emerge
.

The feed start-up device is mainly a 16 million tons/year atmospheric and vacuum distillation device, and the auxiliary start-up devices are a sulfur recovery device, a flare gas desulfurization device, and related public auxiliary and storage and transportation systems
.
Next, Shenghong will continue to focus on the needs of major national industries and accelerate the opening of the full-process industrial chain of refining and chemical integration
.

From the perspective of new industry planning and layout and strategic implementation, Dongfang Shenghong is accelerating along the new development concept and the national industrial development path.
Its three million-ton projects - million-ton EVA (ethylene-vinyl acetate copolymerization) The projects of photovoltaic new energy materials, million-ton acrylonitrile new materials, and million-ton green degradable materials projects are particularly attractive, becoming the focus of breakthroughs in the transformation of the petroleum and chemical industries, and vigorously promoting the development of national strategic emerging industries.
At the same time, it also draws a new blueprint for the sustainable development of enterprises
.