Oil Refining Upgrade Project at PetroChina Daqing Started

On July 7, 2018, the symposium and launching ceremony of PetroChina Daqing Petrochemical Oil Refining Structure Adjustment and Transformation Project were held at the refinery of PetroChina Daqing Petrochemical, marking the adjustment of the petrochemical industry pattern in Heilongjiang Province.

According to sources, the project is approved a total investment of 4.447 billion RMB. The project mainly includes 90kt/a MTBE unit, 220kt/a alkylation unit, 1,200kt/a continuous reforming unit, 2,000kt/a catalytic cracking unit, 600kt/a gas fractionation unit, 500kt/a gasoline desulfurization unit, two sets of 20kt/a sulfur recovery units, etc. Moreover, the project also includes the transformation of 3,500kt/a CDU & VDU units, 1,200kt/a hydrocracking unit and 1,200kt/a gasoline and diesel hydrofining unit. Therein, the MTBE unit and alkylation unit are scheduled to be completed in August and put into operation in October. Moreover, the hydrocracking unit transformation will be completed in parallel with the major overhaul in 2018. The reforming unit is scheduled to be completed and put into operation in 2019. Besides, the catalytic cracking unit, gasoline desulfurization unit, etc. are scheduled to be completed by August 30, 2020 and will be put into operation by October 30, 2020. It is expected that the quality of gasoline at PetroChina Daqing Petrochemical will meet GB VI B standard when the project is completed.

As for LPG and its downstream deep-processing industries, the newly added alkylation capacity in Northeast China will reach 1,920kt/a, and most of the newly added alkylation units will be put into operation in H2, 2018 in succession. As a result, the merchantable C4R2 volume will greatly decline. On the whole, market participants need to pay close attention to the LPG market change in northern China.