Sinopec Luoyang Petrochemical Begins Refinery Expansion in China's Henan Province

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Researched by Industrial Info Resources (Sugar Land, Texas)--The corner stone laying ceremony for a 52,000 barrel per day (bpd) diesel hydrogenation unit and associated support facilities of Sinopec Luoyang Petrochemical Company (Luoyang, Henan), a regional subsidiary of China Petroleum & Chemical Company Limited (Sinopec) (Beijing) (SHA: 600028), was held in Luoyang City of central China's Henan Province on June 29, 2009. This marks the official start of the second phase of Luoyang Petrochemical's oil quality upgrading and expansion project.

Construction of Luoyang Petrochemical, located about 33 kilometers northeast of Luoyang City, began in 1978 and operations began in 1984. Through years of rolling development, its 100,000-bpd atmospheric and vacuum distillation unit, 28,000-bpd heavy oil cat cracker, 14,000-bpd continuous catalytic reforming unit, 16,000-bpd straight run diesel hydrotreater, and other chemical units were put into operation one after another.

In May 2006, the overall design scheme for Phase I of Luoyang Petrochemical's oil quality upgrading project received approval. With the oil quality upgrading project in 2006, and the following commissioning of a 1.4-million metric ton per year delayed coker and 44,000-bpd wax oil hydrogenation unit in l2008, Luoyang Petrochemical's crude oil processing capacity has reached 160,000-bpd.

The newly started 52,000-bpd diesel hydrogenation unit is an adaptive renovation project to process crude oil from Tahe Oilfield, representing a total investment of $67.2 million in Luoyang Petrochemical's Phase II Upgrading and Expansion Project. The project is mainly comprised of reaction, distillation and common facilities, and the associated railway loading/unloading platform, oil tank and pump station renovation. Feasibility study report of the project received approval in March 2008, and is expected to achieve intermediate delivery in August 2010. Total construction period of the project will be 14 months. Upon completion, the crude oil processing capacity of Luoyang Petrochemical will reach 200,000-bpd, and become an extra large refining and chemical integrated production base in central China.

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