Alkylation Unit at Sinopec Tianjin Company to Be Started

According to sources, the 300kt/a alkylation unit at Sinopec Tianjin Company will be put into operation in July 2018, and the demand for C4R2 will grow accordingly.

After the alkylation unit at Sinopec Tianjin Company is put into operation, the annual demand volume of C4R2 will reach 375kt, and the C4R2 output at Sinopec Tianjin Company is 146kt. At that time, other state-owned refineries in North China will supply C4R2 resources to Sinopec Tianjin Company, thus the C4R2 consumption volume in North China will obviously increase. Furthermore, the volume of C4R2 supplied to the surrounding markets of North China will greatly decline.

Moreover, the volume of alkylation units in North China was relatively low, and the operating rates were unstable. Therefore, the demand for C4R2 was relatively low, and the C4R2 resource in North China had been surplus for a long time. Besides, traders were active in selling C4R2 resources from North China to the surrounding areas for arbitrage. Currently, the alkylation capacity in North China is about 1,500kt/a, and the alkylation unit at Sinopec Shijiazhuang Refining & Chemical Company will be put into operation at the end of May 2018. Thus, the demand for C4R2 in North China will obviously increase, but it will also be tougher for state-owned refineries to purchase C4R2 resources.