Singapore — China National Petroleum Corp and Venezuela's PDVSA recently revived theplan for a 20 million mt/year (400,000 b/d) Guangdong refinery in southernChina, adding a 2.6 million mt/year aromatics plant and 1.2 million mt/yearsteam cracker to the project.
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The Guangdong refining and petrochemical project, which will be locatedat Jieyang in the southern Guangdong province and known as the Jieyang orNanhai refinery, will be built by a joint venture between CNPC (60%) and PDVSA(40%) called PetroChina/PDVSA Guangdong Petrochemical Co. Ltd.
The JV published the first environmental assessment of the updatedproject for public comments on March 8.
"In order to adapt to new development changes, such as resources,markets, cooperation and industrial policies, we have now decided to adjustthe Guangdong refinery project to a refining-aromatics-chemical integratedproject," the JV said, but without giving a timeline.
This will be PetroChina's fourth refinery in southern China, after the 12million/year Guangxi plant, 10 million/year Sichuan facility, and 13 millionmt/year Yunnan complex.
PetroChina's refineries used to be concentrated in the north, close toonshore oil fields, and it would ship refined products to the consumptioncenters in eastern and southern China.
Other state-owned oil companies are also expanding their refiningcapacities in South China.
The second phase of CNOOC's 10 million mt/year expansion project inHuizhou started up last September, while Sinopec's 10 million mt/yeargreenfield refinery in Zhanjiang is expected to be ready in 2019. Sinochem isalso expanding its Quanzhou refinery capacity by 3 million mt/year.
Refining capacity in southern China, including Fujian, Guangdong, Hainan,Guangxi, Yunnan and Sichuan provinces, is currently 133.4 million mt/year,according to S&P Global Platts data.
PetroChina/PDVSA's Guangdong project had obtained approval from theNational Development and Reform Commission in 2012 and was originallyscheduled to start up in 2015, Platts reported previously.
According to the recent environmental assessment, the Guangdong refinerywill be designed to process Merey 16 crude from Venezuela, Basra heavy crudefrom Iraq, and heavy crude from Iran.
PDVSA and CNPC in mid-2017 signed four agreements to process, refine andmarket heavy oil from Venezuela's Orinoco Belt. The heavy crude will beprocessed in China according the agreements, Platts reported earlier.
The Guangdong refining and chemical project will include a crudedistillation unit, hydrocracker, continuous reforming unit, gasoilhydrotreater, jet fuel hydrotreater, alkylation unit, an aromatics complex, asteam cracker, butadiene extraction unit, styrene monomer unit, polypropyleneunit, and other facilities.