Shanghai Petrochemical to Relocate and Expand 150,000-Metric-Ton Ethylene Unit

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Researched by Industrial Info Resources (Sugar Land, Texas)--The National Development and Reform Commission (NDRC) recently announced that it has approved a relocation and expansion project for an ethylene unit of Sinopec Shanghai Petrochemical Company (NYSE:SHI) (Shanghai), a subsidiary of China Petroleum & Chemical Corporation (NYSE:SNP) (Beijing).

According to the NDRC, the unit will be moved and rebuilt at another site, and its production capacity will be expanded from 150,000 metric tons per year to 600,000 metric tons per year. The project will also be built with associated deep-processing facilities, including a 300,000-metric-ton polypropylene device, a 380,000-metric-ton glycol device and the required support facilities.

Shanghai Petrochemical, occupying 9.4 square kilometers, is one of the largest oil-refining and chemical-integrated enterprises in China. The company currently has an annual crude oil processing capacity of 14 million metric tons; 5.1 million metric tons of product oils and chemical products; 950,000 metric tons of synthetic resin and plastic products; and 1.38 million metric tons of synthetic fiber. Shanghai Petrochemical currently has two ethylene devices with an annual production capacity of 950,000 metric tons, including the 150,000-metric-ton unit involved in the recently approved project and an 800,000-metric-ton unit. In 2005 and 2006, the company's output of ethylene surpassed 960,000 metric tons each year.

The 150,000-metric-ton unit, commissioned in 1976, is one of the longest-running ethylene units operating in China. The company decided to relocate and expand the unit in order to conserve energy and to meet increasing ethylene demand of its downstream facilities. Construction is expected to last two years. Upon completion, Shanghai Petrochemical's ethylene production capacity will be expanded to 1.4 million metric tons per year.

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