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PetroChina Fushun Petrochemical Company, China




Key Data


PetroChina is building a refining and petrochemical complex in Fushun, Liaoning Province, China. The facilities will be known as PetroChina Fushun Petrochemical Company.

The petrochemical facilities will include an 800,000tpa ethylene plant and down stream facilities which include a 300,000tpa polypropylene (PP) plant and 350,000tpa of high density polyethylene (hdPE) capacity. The plants are due to become operational during 2010.

The project was given the go ahead by China's authorities during the first half of 2006.

CONSTRUCTION OF ETHYLENE CAPACITY

A contract for the 800 000tpa cracker was awarded to US-based Shaw Group. The contract covers basic engineering, technology licensing, procurement of key equipment and materials, technical training, commissioning and start up services. The value of the contract was not revealed.

HIGH DENSITY POLYETHYLENE (hdPE) PROCESS TECHNOLOGY

During the final quarter of 2007 Basell announced that it had been awarded a contract to supply of its Hostalen technology for the 350,000tpa hdPE plant being built at the Fushun refinery/petrochemical complex. Basell says that is Hostalen process is a "leading low-pressure slurry process for the production of bimodal hdPE."

POLYPROPYLENE (PP) PROCESS DESIGN AND TECHNICAL ADVICE

During February 2008, PetroChina announced that Norway-based Aker Kvaerner had been awarded a contract to provide the extended process design package and technical advisory services for the 300,000tpa PP plant. Aker Kvaerner said that this is the third PP project in China that it had been awarded with the last year. The value of the contract was not disclosed.

Once the PP plant becomes operational in 2010, it will produce a broad range of PP resins including homopolymers, random copolymers, and impact copolymers for various grades of plastics.

"Fushun Petrochemical is destined to become the biggest integrated refining and petrochemical base in Northeastern China."

POLYPROPYLENE (PP) PROCESS TECHNOLOGY

During February 2008, PetroChina announced that it had selected US-based Dow Chemical's Unipol Polypropylene Process technology for the PP plant. According to Dow Chemical the production plant is the fourth to be built in China over the last 24 months using the Unipol process technology.

Dow Chemical says that by time the PetroChina plant becomes operational its Unipol technology will be used globally to produce more than 10 million tpa of polypropylene. This, says Dow Chemical, accounts for more than 16% of total global PP capacity.

BACKGROUND

According to PetroChina its subsidiary, Fushun Petrochemical is destined to become the biggest integrated refining and petrochemical base in Northeastern China following the completion of the refinery and petrochemical complex. The development is also expected to lead to the growth of related industries and the local economy. PetroChina is also building petrochemical capacity in Chengdu, Sichuan Province.

PetroChina is one of the major producers and distributors of chemical products in China. Most of its chemical plants are integrated in refining. By December 2006 PetroChina said that it was producing 2.63m tpa of ethylene, accounting for 26.6% of the national output.
PetroChina says that it is the largest oil and gas producer and distributor in China. During 2007 PetroChina won wide recognition across international capital markets for its corporate governance and profitability.