Sinopec’s Maoming Company Invests $160 Million to Upgrade Its Infrastructure

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Researched by Industrial Info Resources (Sugar Land, Texas)--To address the unscientific structuring of refining and ethylene production units, China Petroleum and Chemical Corporation’s (Sinopec) (Beijing, China) Maoming Company is investing $160 million in 18 projects to upgrade its infrastructure. So far, 70% of the investment has been completed. The new 250,000 ton-per-annum (TPA) high-pressure polyethylene unit began production on March 17. The technological upgrading of its No. 1 coking unit, oil substitution by coke circulating fluidized bed (CFB) boiler project and 50,000 TPA to 80,000 TPA rubber production capacity expansion project is being sped up. The projects are expected to be complete this year.

Maoming Company was established in 1955. It is a large scale state-owned oil refining and chemical two-in-one enterprise within Sinopec’s group of companies. In the past a few years, Sinopec Maoming financed $1.33 billion to upgrade and expand its 1 million ton per year ethylene unit and to upgrade the quality of its refined oil. However, the unscientific distribution of its infrastructure still plagues the company and restrains its further development.

After Sinopec Maoming expanded its ethylene production from 360,000 tons per year to 1 million tons per year, its butadiene production has been in surplus. Overstock and low pricing of butadiene is the bitter consequence from its ethylene expansion. The current 50,000 ton to 80,000 ton rubber production expansion aims to solve the butadiene overstock. Besides the expanded production capacity, 80,000 more per annum of rubber production unit will be set up, as well. Upon both units’ completion, Sinopec Maoming’s 160,000 ton per year rubber production capacity will turn its overstocked butadiene into in-demand rubber products. The construction of the $4 million rubber capacity expansion project has started and is scheduled to be complete in December. Production equipment installation will follow immediately. Sinopec Maoming has already received a long-term purchase order for rubber products from this production unit. The new rubber production facility will cost $146 million and is in the design stage.

The $106 million oil substitution by coke boiler upgrading project’s foundation will be laid out in September while its slated production date is early 2009.

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