BASF-YPC Integrated Petrochemical Complex, Nanjing, China

During September 2005, BASF-YPC inaugurated its $2.9 billion joint venture petrochemical production complex located in Nanjing, China. The complex is centred around a cracker producing 600,000tpa of ethylene.

The nine downstream process plants produce low density polyethylene (ldPE), ethylene glycol (EG), acrylic acid and esters, oxo-alcohols, formic acid, methylamine, propionic acid and dimethyl formamide (DMF). Total production capacity at the site is 1.7 million tpa.

JOINT VENURE COMPANY

BASF-YPC was established in 2000 as a 50:50 joint venture between Germany's BASF and China's Sinopec subsidiary, YPC. The original letter of intent to establish the project was signed in 1996.

FEEDSTOCK SUPPLY

During 2000 China's Jinling Petrochemical said that it was to supply 90% of the naphtha feedstock for the cracker that would produce 600,000tpa of ethylene. Jinling Petrochemical has a refinery some 5km from the BASF-YPC complex.

PROJECT MANAGEMENT CONTRACT

US-based Fluor Daniel was awarded the BASF-YPC project management contract in 2001. The value of the contract was not disclosed. The contract included the design, procurement and management of the project.

ETHYLENE PLANT CONTRACT

The contract for the cracker was won by US-based Shaw Group. Under the terms of the contract, Shaw's subsidiary Stone & Webster was responsible for the engineering, procurement and construction services of the cracker.

CRACKER STORAGE TANKS

Tractebel Gas Engineering (TGE) was awarded the contract to supply five cracker storage tanks for the BASF-YPC petrochemical complex. TGE claim that the nickel / steel tanks were the first "horizontal cylindrical storage tanks for ethylene in China". The scope of the contract included delivery of equipment and material, and the supervision of construction, commissioning and performance testing.

LOW DENSITY POLYETYLENE (ldPE) CONTRACT

SembCorp-Simon Carves of the UK and Taiwan's CTCI were awarded the contract to supply the 400,000tpa ldPE plant. The plant was said to be the largest of its kind in China. The cost of the facility was $200 million.

ETHYLENE OXIDE (EO) / MONO ETHYLENE GLYCOL (MEG) CONTRACT

Japan's JGC Corporation was awarded the contract to supply the 315,000tpa EO / 300,000tpa MEG plants for the complex. The contract, which was announced in October 2002, was awarded on a lumpsum turnkey basis. The contract included detailed design, equipment and material procurement, construction and test run supervision of the plants. JGC cooperated with China's Sinopec Engineering Inc (SEI) to develop the plant.

REACTORS

Reactors for the EO production plant were supplied by Larsen & Toubro's Heavy Engineering Division.

ACRYLIC ACID / ACRYCLIC ACID ESTER AND OXO-ALCOHOL CONTRACT

During the middle of 2002 Japan's Toyo Engineering Corporation (TEC) was awarded a contract to supply plants producing 160,000tpa of acrylic acid, 215,000tpa of acrylic acid ester and 250,000tpa of C4 oxo-alcohol. The plants are based on BASF technology. The contract was awarded on a lumpsum turnkey basis.

C1 COMPLEX

At the start of 2003 the contract for the C1 complex was awarded to a consortium of Spain's Tecnicas Reunidas and Taiwan's CTCI Corporation. The C1 complex is made up of 50,000tpa formic acid, 30,000tpa propionic acid, 40,000tpa dimethylformaldehyde and 36,000tpa methylamine.

COMPRESSOR SUPPLY

Tecnicas Reunidas and CTCI awarded Man Turbo a contract to supply a screw compressor for the C1 complex. The contract was awarded during the first half of 2003.

SYNGAS PLANT

During the second quarter of 2002, France-based Technip-Coflexip was awarded a contract by BASF-YPC to provide a syngas facility. The facility produces oxo-syngas, carbon monoxide and hydrogen, with steam as a by-product. Products from this plant are used for feedstock in the various down stream plants.

STEEL STRUCTURE

China's Shanghai Steel Structure and Piping Prefabrication Company supplied the steel structure fabrication and construction for the syngas plant.

THERMAL POWER PLANT

South Korea's Daelim Industrial was awarded the $130 million contract to supply a thermal power plant for the petrochemical complex. The plant has a power generation capacity of 180MW. The contract was awarded during the first quarter of 2002.

HEAT RECOVERY STEAM GENERATION

Korea's DKME was awarded the contract to supply a heat recovery steam generation system. The contract was awarded by Daelim.

PETROCHEMICAL COMPLEX AUTOMATION

During November 2003 Emerson Process Management announced that it was awarded a contract for the automation of the complex. Emerson's Plantweb architecture and automation system was installed. As well as providing system integration, engineering and project management services for automation of the complex, the company also provided training and maintenance services.

ELECTRICAL VENDOR PROJECT

During the second half of 2002 BASF-YPC awarded Siemens the 'main electrical vendor umbrella agreement'. Under the terms of the agreement Siemens provided all project plants and utilities with a full range of power products, systems and services.

VALVE CONTROL EQUIPMENT

UK-based company Smith Flow Control, which specialises in mechanical valve control equipment, was contracted by Toyo Engineering to supply equipment for the acetic acid and acrylic acid ester plants. The contract value was not disclosed.

SPECIALIST DOORS AND WINDOWS

JGC awarded UK company Booth Industries a contract to supply 'high integrity products' to protect control room and administration buildings at the BASF-YPC complex. The contract award was announced in June 2003.

EXPANSION PLANS

During the September 2005 inauguration ceremony BASF-YPC announced that due to the successful and smooth start up of its joint venture complex, the company would invest in additional downstream plants and in the expansion of ethylene production unit.

BACKGROUND

The first steps in the development of the $2.9 billion BASF-YPC petrochemical complex began in 1996 with the signing of a letter of intent. This was followed in 2000 with the approval of the joint feasibility study and the establishment of the joint venture company. Groundbreaking took place in September 2001 with the plant beginning commercial operation in June 2005.

BASF-YPC stated that the complex will play an important role in enhancing the international competitiveness of China's petrochemical industry and will also contribute to the "rapid and healthy development of Nanjing and East China's economy".