CNOOC Dongfang Petrochemical Company Finishes Trial Operations at Hainan Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--CNOOC Dongfang Petrochemical Company, a wholly owned subsidiary of China National Offshore Oil Corporation (HK:00883) (CNOOC) (Beijing, China), completed trial operations for phases I and II of its Hainan Refining and Petrochemical Project, which is located in Dongfang City's industrial zone.

Built with a total investment RMB 8.7 billion (US$1.4 billion) and covering an area of 70 hectares, the project is a result of the 12th Five-Year Plan (2010-15) for the development of the Hainan province. Products from the refinery had met specifications as of February 24, 2014.

CNOOC Dongfang Petrochemical's refining and petrochemical project is being constructed in two phases. Phase I involves a RMB 4.34 billion (US$7 billion) investment for refining units: a 40,000-barrel-per-day (BBL/d) crude distillation unit to process Hainan Wenchang domestic crude oil and Ledong natural gas; a 24,000-BBL/d deep catalytic cracking unit with advanced DCC technology to produce propylene and C4, which is a feedstock for Phase II; a 6,000-BBL/d Diesel hydrotreater; and an 80,000-ton-per-year MTBE unit. The main products are liquid petroleum gas, MTBE, gasoline and diesel.

Phase I site preparation commenced June 20, 2011. The trial operation was performed from January 2014 through the end of February.

Phase II, which is still in preparation, will focus on petrochemicals, including a 200,000-ton-per-year acryonitrile unit; a 70,000-ton-per-year methyl methacrylate (MMA) unit; a 120,000-ton-per-year ethyl benzene-styrene unit; and a 214,000-ton-per-year sulfur acid recovery unit. The main products are acrylonitrile, styrene, MMA and acetonitrile.

The construction kick-off will soon follow, once an engineering, procurement and construction management company is selected. Following Hainan's principle of "circular economy," the project will emphasize clean production of green petrochemicals, developing products to achieve economic and social benefits.

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