Perspectives
As China’s largest petrochemical centre, Sinopec’s Zhenhai Refinery completed its second phase expansion, increasing capacity to 40 million tonnes yearly and pushing the Zhejiang Ningbo Petrochemical Base to 50 million tonnes. The project, which has a $5.82 billion investment, adds 18 units, improves the manufacturing of high-end materials, and makes advancements in sustainability and efficiency.
The second-phase expansion and advanced materials project at China Petroleum & Chemical Corporation’s (HKG: 0386, “Sinopec”) Zhenhai Refinery has been mechanically completed. This milestone establishes new standards for energy efficiency, smart manufacturing, and innovation in large-scale initiatives. The Zhejiang Ningbo Petrochemical Industrial Base presently has a refining capacity of over 50 million tonnes yearly thanks to the refinery’s capacity expansion to 40 million tonnes. Its status as the biggest, most developed, and most competitive petrochemical industrial base in China is cemented by this accomplishment.
Sinopec’s value chain depends heavily on the Zhejiang Ningbo Petrochemical Industrial Base, which is situated in the Yangtze River Delta, a major downstream product consumption hub. With a total investment of CNY 41.6 billion (~$5.82 billion), the second-phase expansion and advanced materials project includes 18 manufacturing units, such as units for atmospheric distillation, catalytic cracking, polypropylene, and propane dehydrogenation. Multiple high-value supply chains are created by the initiative by focussing on chemical-focused processes.
The development of speciality chemicals, sophisticated materials, and premium polyolefins is aided by the facility’s increased production capacity. It is anticipated to deliver about 8 million tonnes of petrochemical products per year, greatly increasing supply networks’ overall capacity for industries in the area, including textiles, home appliances, and automobiles. It is anticipated that this growth would provide upstream and downstream industrial value of trillions of yuan.
In terms of sustainability and technical innovation, the project made impressive strides. Highlights consist of:
- Ten key innovations, including the highest-load vertical labyrinth compressor in the world, have been localised.
- The widespread use of smart technology has made it possible to supply physical and digital factories at the same time.
- To improve management and decision-making, a self-developed industrial internet platform and a completely localised industrial operating system are integrated.
- The use of all-encompassing energy-saving strategies resulted in an 11.7% total decrease in energy consumption.
- During construction, safety and quality were of utmost importance. A new industry standard was set with over 90 million continuous safe man-hours and a 100% quality pass rate for all units.
The largest integrated refining and chemical company in Sinopec, Zhenhai Refinery, can produce 2.2 million tonnes of ethylene annually. Additionally, it is the only Chinese company that routinely places in the Solomon Global Ethylene Performance Evaluation’s top performance group.