Become a 300,000-ton Polypropylene Project in Daqing where the Resources are Winning in the Market--the Tenth Five-Year Key Projects

June 19 21:01:32, 2018

The 300,000-ton/year polypropylene project of China National Petroleum Daqing Refinery Branch, which is one of the five landmark projects for the revitalization of the old northeast industrial base in Daqing and has currently the largest single-line production capacity in China, has been put into operation since the beginning of this year for three months and ended in November. In the middle of the year, 42,000 tons of qualified polypropylene high-grade products have been produced, achieving a sales income of more than 300 million yuan, which not only created significant economic benefits, but also partially eased the contradiction between the supply and demand of domestic polypropylene, and more importantly, the local economy. Strong driving forces with related industries have begun to show.
At present, Daqing Refining & Chemical Branch has demonstrated the technical advantages of the device, developing high-impact copolymerized products with good rigidity/toughness/liquidity balance, random copolymerization products, BOPP and CPP film materials, fiber/non-woven materials, and automobiles. High-end products such as bumpers and household appliances are used to improve the product structure of domestic polypropylene.
Taiwan Formosa Plastics Group is in communication with Daqing City, and hopes to establish a plastic processing base in Daqing. This move will provide a possibility for extending the local petrochemical industry chain, and it will also drive the rapid development of the plastic processing industry in Daqing and even the northeast region.
In accordance with the original design, Daqing Petrochemical Branch has begun to supply 74,000 tons/year of propylene raw materials to this newly-built 300,000-ton polypropylene plant, and has already consolidated 300,000 tons/year with Daqing Refinery Branch. The issue of mutual supply of raw materials for the 450,000 tons/year polypropylene project planned during the “Eleventh Five-Year Plan” period is an important basis for determining the scale of project construction.
According to a senior engineer from the Chinese Petroleum Group's chemical expert group, Xu Zhanwu, deputy chief engineer of Daqing Refining & Chemical Company, the 300,000-ton/year polypropylene project with a total investment of 1.243 billion yuan will start from the beginning and put a high starting point for the technological process. The gentrification and marketization are the starting point for decision-making.
China has always been a big importer of polypropylene, and the high-grade copolymer materials are basically monopolized by imported materials. In recent years, the domestic polypropylene has developed rapidly, but its quantity, quality, and variety cannot meet the needs of the rapid growth of the domestic market. Import volume has been rising year by year. According to the known planning situation, the domestic polypropylene resin production capacity will increase significantly in the next few years, reaching 5.69 million tons/year in 2005, the market gap will be 2.75 million tons/year, and the self-sufficiency rate will increase, but in 2005 In the future, polypropylene capacity will increase slowly, and the market gap will further expand. By 2015, 9.14 million tons will be imported to meet market demand.
According to Xu Zhanwu's analysis, Daqing's 300,000-ton/year polypropylene plant has a very good comparative advantage. One of the main reasons is the advantage of raw materials.
According to reports, crude oil produced in Daqing is easily cracked and has a high light hydrocarbon component. The completed 600,000-ton ethylene plant of Daqing Petrochemical Company can provide at least 74,000 tons of propylene per year for polypropylene plants. In the technology development of propylene production, Daqing Refinery also has its own advantages. Daqing Petrochemical itself can provide 300,000 tons of propylene per year through plant modification. Today, with the increase in propylene production at Daqing Petrochemical and Daqing Refining & Chemical Company, its raw material advantages will be further highlighted.
In order to make our country's polypropylene products competitive in the market, we have developed impact and copolymerization products with good rigidity/toughness/liquidity balance, random copolymer products, BOPP and CPP film materials, fiber/non-woven materials, and polypropylene development in automobiles and home appliances. The application of fields, etc., are all important research topics and development directions in the future.
The Daqing Refining & Chemical Company's 300,000-ton/year polypropylene plant can produce 103 kinds of special resin, becoming the largest producer of polypropylene in China. At the same time, Daqing Refinery is considering the development of high-grade copolymer materials in the next expansion.
Based on sufficient raw material supply and vast market space, Daqing Refining & Chemical Company plans to invest a further 1.8 billion yuan in the next step and build a new 450,000-ton/year polypropylene plant, which will be completed and put into operation during the 11th Five-Year Plan period. The company is currently developing industrial technologies for the production of a wide range of raw materials for propylene through technical modifications and research on its own devices such as the 120,000 tons/year ARGG (heavy oil catalytic cracking unit). It is planned that during the “Eleventh Five-Year Plan” period, an additional ARGG device will be built to support the new 450,000-ton polypropylene plant. By then, the polypropylene production capacity of Daqing Refinery Branch will reach 750,000 tons/year.