TPC Accelerates Ethylene Project

After the start of the construction on June 26th, 2006 (CCR2006,
No. 19), the 1.0 million t/a ethylene project in Tianjin is
progressing smoothly according to the schedule. The
construction period is 3 years and the project is scheduled to
put on stream in 2009.
   The total capacity of ethylene in Sinopec Tianjin
Petrochemical Company Ltd. (TPC) will reach 1.2 million t/a in
2009, the crude oil processing capacity will reach 12.5 million
t/a. The total investment is estimated to be RMB25 billion.
Twelve million tons of oil products and petrochemical products
with high quality and high specifications can be produced a year.
After the completion, the project will help the company realize
sales revenue of more than RMB50 billion per year. If upstream
and downstream products are added, an industrial chain of over
RMB100 billion will form and the development in surrounding
areas of Tianjin city will be promoted.
   
Promote the growth of cyclic economy
"The project will be constructed in a regional, large-scaled,
integrated and specialized development mode," said Sinopec Corp.
President Wang Tianpu. "It will have comprehensive advantages
in unified matching facilities, shortened process flow,
material mutual supply and minimized cost and finally become a
model project of energy conservation, ecological optimization
and environmental friendliness."
   According to experts, the large ethylene project will
implement the mode of cyclic economy. Advanced clean production
processes both at home and abroad will be used and resource
optimization and comprehensive utilization will be achieved
through integrated design of refining and chemical production,
rational distribution of resources and mutual supply and sharing
of chemical raw materials, intermediates, products, byproducts
and scraps. Desalinated seawater will be used first, the sewage
in-depth processing will be conducted and the proportion of
reclaimed water will be increased to avoid the consumption
growth of fresh water. The thermoelectricity co-generation
method will be used to make the comprehensive utilization of
low-priced high-sulfur coke and reduce the cost of steam and
power. The integrated production and technical innovation will
be conducted to effectively reduce production cost and
environment cost and reap maximum benefits.
   Binhai Chemical Area (BCA) will take refining and ethylene
units as the lead and highlight 4 industrial chains of cyclic
economy including petrochemical industry, marine chemical
industry, C1 chemical industry and energy comprehensive
utilization. It will also extend 50 product chains and bring
about the development of polyolefin, polyester, synthetic
rubber products and fine chemicals. The industrial chain of
petrochemical industry refers to the use of gasoline, kerosene,
diesel, ethylene, propylene, C4, C5, aromatics and ethylene tar
produced through refining and chemical integration as raw
materials to develop high-quality oil products, polyolefin,
polyester, carbon black-based tires, synthetic rubbers in all
and new chemical materials. The industrial chain of marine
chemical industry refers to the use of partial ethylene,
propylene, benzene and raw salt produced through refining and
chemical integration as raw materials to develop synthetic
resins, epoxy resins, polyurethane materials, silicone
materials, methane chlorides, chlorinated polymers and
methionine additives. The industrial chain of C1 chemical
industry refers to using of partial ethylene, propylene, basic
organic chemical raw materials, natural gas, coal, raw salt and
syngas produced through refining and chemical integration as raw
materials to develop soda ash, chemical fertilizers,
engineering plastics, synthetic fibers, textile sizing agents,
coatings, dyestuffs, pharmaceuticals and plasticizers. The
industrial chain of energy comprehensive utilization refers to
the use byproducts, scraps and scrap combustion as raw materials
and energies to develop energy comprehensive utilization
sectors.
   In this way, products, energies and scraps can be fully
reclaimed and used, the cyclic economy in BCA can be fully
embodied and a coordinated development between production and
environmental protection can be achieved.

Lead the development of Binhai Petrochemical Base
In January 2006, with the construction of the large ethylene
project as the showcase, Sinopec and Tianjin Municipal
Government jointly established BCA, a state-class petrochemical
base. (CCR2006, No. 4)
   The large ethylene project will have significant
implications on investment expansion and industrial upgrading
in the development of the petrochemical industry in Tianjin and
even in China. According to Wang Tianpu, with the 1.0 million
t/a ethylene project as the lead, a cluster of petrochemical
enterprises will be formed around the Bohai Bay. A synergistic
effect will be produced together with Beijing Yanhua
Petrochemical, Qilu Petrochemical and Qingdao Petrochemical,
whose ethylene capacity in all will reach 3.0 million t/a at the
end of the Eleventh Five-year Plan period (2006-2010). The
completion of the project will increase the ethylene
self-sufficiency rate in China from 50% to 60%.
   On September 20th, 2006, TPC and Bohai Chemical Industry
Group signed an agreement on the supply of petrochemical
products. According to the agreement, after the completion of
the 1.0 million t/a ethylene project TPC will provide 150 000
tons of ethylene, 50 000 tons of propylene, 150 000 tons of
butadiene and 100 000 tons of benzene a year to Bohai Chemical
Industry Group. (CCR2006, No.29) Traditional sectors in Tianjin
such as the marine chemical industry can also have a development.
Bohai Chemical Industry Group is constructing matching
facilities today.  Besides, a group of other projects have also
put on stream or are being constructed in Tianjin.