In 2017, China's ethylene production capacity reached 24,555,000 tons/year, second only to the United States, ranking second in the world. According to incomplete statistics, from 2017 to 2021, China plans to put more than 40 new ethylene projects into operation, involving at least 2400 new capacity. 10,000 tons/year. On the occasion of the launch of large ethylene projects, private enterprises, central enterprises, and local state-owned enterprises are making use of the mixed ownership model to exert their respective strengths to build high-tech, high-tech barrier-based joint projects of large-scale ethylene projects.
Large ethylene project was launched
In 2017, the domestic new ethylene production capacity was 1.45 million tons/year, and the production capacity was 24.575 million tons/year, a year-on-year increase of 6.3%, and the production capacity ranked second in the world. Last year, the average size of domestic ethylene plants continued to increase, with a single set of 800,000 tons. The large-scale installations in the year and above reached 11 sets, with a total production capacity of 10.96 million tons/year. At the same time, ethylene raw materials are diversified and the characteristics of light weight are further highlighted. Domestic enterprises increase the supply of high-quality ethylene raw materials, refineries use light hydrocarbons, and liquefied gas accounts for Compared with 2016, it increased by 4 percentage points. The way to achieve this is to refine the refinery, increase production of liquefied gas, top oil, recover ethane, propane, etc. to optimize the structure of ethylene raw materials; second is to increase the purchase of foreign light hydrocarbons, coagulation Lightweight raw materials such as oil separation, coastal refineries actively import condensate, LPG, propane, butane and other light hydrocarbon resources.
According to incomplete statistics, from 2017 to 2021, China plans to put more than 40 new ethylene projects into operation, involving an additional capacity of at least 24 million tons/year, among which Shandong local enterprises plan to put into production of ethylene capacity exceeding 6 million tons/year, Zhejiang Petrochemical, Several 1 million tons/year large ethylene projects such as Gulei Petrochemical and Sinochem Quanzhou are also under construction.
According to the data provided by the China Petroleum Economic Research Institute, the “13th Five-Year Plan” period will be the peak period for the production of ethylene capacity. By 2020, several million-ton ethylene plants with naphtha as the main raw material will be put into production. Including Hengli Petrochemical 1.5 million tons/year, Yunnan Petrochemical 1 million tons/year, Shenghong Petrochemical 1.1 million tons/year, China Branch Dalian Oil 800,000 tons/year, Zhejiang Petrochemical Phase I 1.4 million tons/year, Quanzhou Petrochemical 100 Million / year and other devices. In addition, a number of ethylene cracking ethylene project is being planned. It is expected that by 2020, the domestic total ethylene production capacity will reach 35.16 million tons / year.
Mixed ownership model
Compared with previous years, in the near-term planning, more private enterprises have entered the ethylene industry in the construction of large ethylene projects. The Dawei ethylene project is a typical capital-intensive and technology-intensive industry. It not only requires huge investment, but also The requirements for organization construction and operation ability are also very high.
Taking Zhejiang Petrochemical's 40 million-ton/year refining and chemical integration project as an example, the project plans to build 20 million tons/year of oil refining, 4 million tons/year of paraxylene, and 1.4 million tons/year of ethylene and downstream chemical plants. , 1.4 million tons / year ethylene plant is currently the largest unit of ethylene production capacity in the country. The project a total investment of 90.1 billion yuan.
The reporter learned that in June 2015, Zhejiang Petrochemical Co., Ltd. (Zhejiang Petrochemical) was established, 51% was held by Rongsheng Petrochemical, 20% was held by Tongkun, and 20% was held by Juhua Group on behalf of the provincial capital. Zhoushan Ocean Development represented the local government. 9% shareholding, forming a mixed ownership model in which state-owned assets are held by the capital-capitalizing province.
Under the large-scale refining investment demand, Zhejiang Petrochemical has combined strengths and strengths with strong ownership. Several companies that have participated in the shareholding have not been underestimated in terms of financial strength. On the other hand, they have large-scale project construction experience and organizational operating capabilities. This makes Zhejiang Petrochemical has become a model for private enterprises to enter the refining chain.
In this year's ethane-based ethylene project, the reporter also saw such a case. Dalian West Island 2 million tons/year ethylene project, a total investment of about 30 billion yuan, is implemented by Dalian Huikun New Material Co., Ltd. The company is jointly established by Xinjiang Guanghui Industrial Investment (Group) Co., Ltd. (hereinafter referred to as 'Guanghui Group') and Zhejiang Tongkun Holding Group Co., Ltd. (hereinafter referred to as 'Tongkun Group') in Dalian Changxing Island Economic Zone. , A central state-owned enterprise will invest in projects supporting ethane terminals and storage tanks projects. That is to say, the project will actually be jointly constructed by three companies.
Guanghui Group is a Fortune 500 company. Its total assets reached RMB 228.9 billion at the end of 3Q 2017. It achieved operating income of RMB 121.5 billion in the first three quarters of the year, net profit of RMB 2.6 billion, and corporate credit rating of AA+.
Tongkun Group is the world's largest polyester chemical fiber production enterprise. Among the top 500 Chinese companies, the Group's total assets reached more than 30 billion yuan in the third quarter of 2017. In the first three quarters of the year, it achieved operating income of 23.9 billion yuan, net profit of 1.2 billion yuan, and corporate credit. The rating is AA+. As the second largest shareholder of Zhejiang Petrochemical Co., Ltd., it has extensive experience in large-scale project construction and organization and operation.
The total assets of the three companies exceed 308.9 billion yuan, and their credit rating is high. Overall, the above three parties not only have strong investment protection capabilities, but also have strong capabilities in large-scale project construction and operation.
Increase raw material risk management and control capabilities
It is well-known that for large ethylene projects, the convenience, stability, and operability of the raw materials are crucial. This is even more critical in the Ethylene Ethylene project.
In Dalian West Island's 2 million-ton/year ethylene project, the joint operation of private enterprises and central enterprises has greatly enhanced the ability to manage and control raw material risks.
It is understood that the raw material of the project, ethane, has been locked up for a long time. In December 2017, the source of ethane of 2 million tons/year ethylene project at Dalian Xizhongdao was implemented. The direct connection between a large central enterprise and ethane in the United States The supplier signed an exclusive ethane cooperation agreement, avoiding the raw material supply uncertainty that may be caused by contracting with the trader alone.
From the reporter’s point of view, the joint investment in the control of ethane resource export facilities is a highlight of the project. Currently, there are only two ethane export facilities in the United States, which are exported to Europe and India respectively, and have no surplus export capacity. For the export of ethane, new export facilities (including liquefaction facilities, storage tanks, and terminal berths) must be built. To safeguard the stability and price advantage of ethane supply, the central government not only signed a ten-year contract with the United States ethane supplier to lock resources. Also, as a GP, the ethane supplier, the Guanghui Group and a large ethane shipping company jointly invested in export facilities. At the same time, they also led the investment and operation of Dalian Xizhongdao import facilities.
It is noteworthy that, unlike other proposed ethane export facilities in the United States, which are controlled by the U.S. resource side, this central enterprise and the Guanghui Group have a total of more than 51% equity, and are absolutely controlled. They also have control over the pricing of export facilities.
According to reports, enterprises with a background of central enterprises have unique advantages in purchasing ethane in the United States. First, they do not need to provide high performance guarantees. Procurement of ethane from the United States usually requires the submission of a high performance guarantee of 200 million to 500 million U.S. dollars. Central enterprises have good international credit, do not need high performance guarantees, only need to settle each batch of goods according to common trading methods, which greatly reduces the cost of ethane procurement. Second, it is convenient for investment in the United States. In the United States to invest in liquefaction facilities and docks, submit Performance guarantees require large amounts of foreign exchange. Affected by national foreign exchange control, it is difficult to implement in the near future. The central government has an overseas platform company such as Singapore that can directly invest in foreign countries. Third, it has rich experience in international trade. This central enterprise started with chemical international trade. , Has accumulated a wealth of international trade operations experience and talent reserves, with strong international business negotiation capabilities, can effectively identify, assess and respond to the risks that may be encountered. Ethane procurement by the central government can effectively prevent risks and avoid resources In the hands of foreign parties, it leads to vicious competition. Ultimately, Chinese buyers will bear the negative consequences.