CSPC will open MEG plant China late June - Arhive

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CSPC will open a new MEG plant in China in late June – CSPC will open MEG plant China late June

CSPC will open MEG plant China late JuneMOSCOW – China’s CNOOC and Shell Petrochemicals Co (CSPC), a joint venture between CNOOC and Shell, intends to put into operation a new plant to produce monoethylene glycol (ME) at the petrochemical complex in Huizhou, China, in late June Monday told ICIS a source close to the company.

The capacity of the new enterprise will be 400 thousand tons of MEG per year.

According to the source, a new (second) cracker installed at this site with a capacity of 1.2 million tons of ethylene per year began work 24 of this year.

The existing MEG plant of the same capacity is currently loaded by 100%, the source added.

The following plants are already operating at the new complex in Huizhou: low-density polyethylene (HDPE) with a capacity of 400,000 tons, linear polyethylene (LLDPE) with a capacity of 300,000 tons and butadiene with a capacity of 180,000 tons.

MEG along with terephthalic acid (TPA) is one of the main components for the production of polyethylene terephthalate (PET).

According to ScanMap of the company MRC, due to the increased demand for the material on the domestic market of Russia, in April the supplies of Russian PET to foreign markets declined. For four months of the current year, the export of PET-granulate amounted to 24.81 thousand tons against 13.98 thousand tons last year. The volume of exports is traditionally fully attributable to the granulated Alco-Nafta. Imported supplies of PET to the Russian market in January-April 2018 decreased by 9% and amounted to 12.81 thousand tons. A year earlier this figure was 14.03 thousand tons.

CNOOC and Shell Petrochemicals Company Limited (CSPC) was established in late 2000. The company operates a world-class petrochemical complex in Huizhou, Guangdong Province. The partners in the joint venture are Shell Nanhai BV., Which is part of the Royal Dutch Shell Group, with 50% shares, and CNOOC Petrochemicals Investment Limited (CPIL) also with a 50% interest. CPIL is owned by China National Offshore Oil Corporation (CNOOC) (90%) and Guangdong Guangye Investment Group Company Limited (10%).

Being an integrated petrochemical complex, the main CSPC facilities include 11 processing plants, and the center of the complex is a cracking plant with a capacity of 950,000 tons of ethylene and 500,000 tons of propylene per year. In total, the complex annually produces about 2.7 million tons of derivatives of ethylene and propylene petrochemical products.

mrcplast.ru

Author:                Margarita Volkova

official said Wednesday.

The lower July ACP nomination reflects the short term supply and demand situation in the market, the source added. MEG was last assessed at $915/mt CFR China Tuesday, up $15/mt from Monday.

–Serena Seng, serena.seng@spglobal.com

–Edited by Pankti Mehta, pankti.mehta@spglobal.com

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