Sinopec, SABIC Invest in Ethylene Derivative Production Line

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum and Chemical Corporation (Sinopec) and Saudi Basic Industries Corporation (SABIC) recently signed an to jointly invest $1.7 billion to build a 1 million-ton-per-annum (TPA) ethylene derivative production line in northern China's port city of Tianjin.

The production line is part of Tianjin 1 million TPA ethylene and refinery integrated project. The project is the first large-scale project approved in Tianjin Binhai Industrial Zone and the largest-ever industrial project in Tianjin City. Construction on the project began in early 2006 and is expected to be complete in 2008.

The Sinopec-SABIC joint venture company will manufacture 600,000 TPA of polyethylene and 400,000 TPA. The raw materials for this ethylene derivative production unit will be supplied by Sinopec Tianjin Petrochemical's 1 million-ton ethylene cracking unit, which is expected for completion in September 2009.

The joint venture is the second for the companies. Sinopec assisted SABIC in constructing a world-class polyolefin manufacturing line in Yanbu.

China is still importing a large amount of polyethylene because its supply is short. polyethylene supply is short, so the company is importing. The Tianjin project is part of the measures Sinopec took to address the shortage issue. Sinopec is also encouraging all of its petrochemical companies to accelerate the construction of refining and ethylene integrated projects.

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