Sinopec to Construct Four World-Class Refining & Chemical Bases

China Petrochemical Corporation (Sinopec Group) intends to invest RMB200 billion from 2016 to 2020, to establish Maoming and Zhanjiang, Zhenhai, Shanghai, and Nanjing refining & chemical bases, Sinopec Group announced on March 2.
The four world-class bases are to boast a combined refining capacity of 130 million t/a and ethylene capacity of 9 million t/a, supporting 17% and 31% of the nation’s total, respectively. More specifically, Maoming and Zhanjiang base’s refining capacity will be 35 million t/a and ethylene capacity is to reach 1.8 million t/a; Shanghai base, 26 million t/a and 2.59 million t/a; Nanjing base, 36 million t/a and 2.4 million t/a; Zhenhai base, 33-38 million t/a and 1.8-2.2 million t/a.
Locations of the four bases are in Pan-Pearl River Delta, Yangtze River Delta or lower reaches of Yangtze River, which all enjoy convenient transportation, strong economic vitality and development potential.
Major targets in Maoming and Zhanjing base are to optimize refining & chemical business structure of Sinopec Maoming Company and to construct Sino-Kuwait refining & chemical complex;
Zhenhai base will focus on Zhenhai refining & chemical integrated project;
In Shanghai base, key tasks will be resource optimization of Sinopec Shanghai Petrochemical Company Limited, Shanghai SECCO Petrochemical Company Limited and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd.;
Nanjing base will spare no efforts to optimize resource allocation, via adjusting existing industrial chains.
The four large bases are to help China’s refineries upgrade and stimulate investment. Meanwhile, they could propel development of domestic equipment manufacturing industry.
At the end of 2015, Sinopec’s refining capacity reached 289 million t/a, supporting 6% of the world’s total, and its capacity to make ethylene was 10.5 million t/a, accounting for around 7% of global ethylene capacity.