China’s Zhejiang Rongsheng plans CNY160bn refinery-petchem complex
Fanny Zhang
14-Sep-2016
SINGAPORE (ICIS)–China’s Zhejiang Rongsheng is building a joint venture refinery-petrochemical complex in Zhoushan, with the first phase due to start up in late 2018, sources familiar with the project said.
The yuan (CNY) 160bn ($24bn) project, which will be built in two phases in China’s eastern Zhejiang province, is expected to have an overall refining capacity of 40m tonnes/year or 800,000 bbl/day, according to preliminary environmental impact assessment (EIA) report published recently on Zhoushan’s local government website.
It will have an ethylene capacity of 2.8m tonnes/year, with aromatics production estimated at 10.4m tonnes/year, and will include a propane dehydrogenation (PDH) unit with a total capacity of 1.2m tonnes/year.
The complex will produce a host of downstream products such as polyethylene (PE), polypropylene (PP), ethylene oxide/ethylene glycol (EO/EG), ethylene vinyl acetate (EVA), styrene, butadiene (BD), methyl tertiary butyl ether (MTBE)/butylene 1, phenol, acetone, bisphenol A (BPA), polycarbonate, acrylonitrile (ACN) and methyl methacrylate (MMA). (Please see table of capacities below)
Construction remains at an early stage, the sources said.
Zhejiang Rongsheng is in talks with prospective partners Tongkun Group and Juhua Group to each take up a 25% equity stake each in the project, a Tongkun source said.
At least 50% of the project will be kept by Hangzhou-based Zhejiang Rongsheng – which produces purified terephthalic acid (PTA), polyester fibre and other related products.
There were initial market talks that China’s state-owned petrochemical giant Sinopec but may no longer be part of the project, market sources said.
The whole Zhoushan refinery and petrochemical complex is expected to be completed in four years, with the second phase due to begin operations in 2020, the source at Tongkun Group said.
Tongkun Group is engaged in the manufacture of polyester and polyster filament yarn, while Juhua Group is based on Quzhou produces flourochemicals, chlor-alkali chemicals, petrochemicals, coal chemicals, fertilizers and pesticides, as well as pharmaceuticals, according to its website.
Capacity |
1st phase (tonnes/yr) |
2nd phase (tonnes/year) |
Refining |
400,000 bbl/day |
400,000 bbl/day |
Aromatics |
5.2m |
5.2m |
Ethylene |
1.4m |
1.4m |
PDH |
600,000 |
600,000 |
FDPE |
450,000 |
450,000 |
HDPE |
300,000 |
/ |
EO/EG |
50,000/750,000 |
100,000/650,000 |
EVA/LDPE |
/ |
100,000/300,000 |
Styrene |
1.2m |
600,000 |
PP |
900,000 |
900,000 |
butadiene |
200,000 |
200,000 |
MTBE/butylene-1 |
100,000/50,000 |
/ |
Phenol |
400,000 |
/ |
Acetone |
250,000 |
/ |
BPA |
230,000 |
230,000 |
PC |
260,000 |
260,000 |
Acrylonitrile |
260,000 |
/ |
MMA |
90,000 |
/ |
Source: Environmental impact assessment
report available on Zhoushan
government website
By Sophia Ma and Fanny Zhang
Additional reporting by Pearl Bantillo
($1 = CNY6.68)
Photo: Zhoushan, Zhejiang province in eastern China (Source: Google Maps)
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