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2007/2/9 Asia Chemical Weekly

China's PX shortage will be enlarged in 2007

Recently, China government has approved the PX project of Fujian Petrochemical - a jv between Sinopec, Exxon Mobil and Saudi Aramco in Quangang Petrochemical Park, Quanzhou, Fujian Province.

The project will cost USD 485 million and has PX capacity 700,000 tonne/year. It is expected to start up at the same time with an adjacent 800,000 tonnes/year cracker complex in early 2009, which has been started construction work on the cracker project late last year.

The Fujian PX project will be one of the planned large-scale PX projects in the coming years. China will meet PX shortage for a long time as the downstream PTA/PET industry development, so, the government planned 6 new integrated PX projects with total capacity of 4.3 million by 2010, including
Jinling Petrochemical in Nanjing 600,000 tonne/year
Maoming Petrochemical in Maoming 600,000 tonne/year
Fujian Petrochemical in Quanzhou 700,000 tonne/year　　
Dalian Fujia Dahua Petrochemical in Dalian 450,000 tonne/year 　　http://www.fujiagroup.com/menu23.html
CNOOC in Huizhou 800,000 tonne/year
Dragon in Xiamen 600,000 tonne/year

In addition, according to the NDRC's planning in "11th 5 year" for PX industry, there are 4 expansion PX projects including Tianjin Petrochemical, Yangzi Petrochemical, Shanghai Petrochemical and Urumqi Petrochemical with a total added capacity of 1,830 tonne/year.

In case of Urumqi PX project, expansion will be from current 60 000 tonne/year to around 1 million tonne/year by adding a 930000 tonne/year.

Among them, however, only Maoming PX project is expected to start up in 2007. So, this year, China's PX shortage will be enlarged as the limited PX capacity increase and the fast growth of PTA. China PX demand and supply estimate shows as follows.

China PX demand and supply estimate (2007.2.8)

In 2006, China imported 1.84 million ton PX. Currently, Japan and S.Korea are the two major PX supply nations to China. Japan supplied 856 kt and accounted for 46.5%, while S.Korea supplied 770 kt and account for 42% of the total imports of China.

PX Producers and capacities in China (kt/a) (As of 2007/01/01)

2007/2/15 China Chemial Reporter

Shida Chemical Completes PP Unit 　　四川省南充市

On February 6th, 2007 Nanchong Shida Chemical Co., Ltd. completed a propylene production unit with a processing unit of 70 000 t/a and put it into trial production in Nanchong, Sichuan province.四川省南充市
It is the first propylene unit in Southwest China. Qualified propylene products separated from LPG have been manufactured in the company today, which filled the gap of no propylene production in Southwest China before.
This propylene production unit is included in the first phase of the LPG deep processing project with a total investment of over RMB80 million made by Nanchong Shida Chemical Co., Ltd.
The project will be executed in two phases and makes use of LPG from Nanchong Refining & Chemical Complex as raw material. The first phase of the project also includes a 30 000 t/a PP (polypropylene) production unit and some other related facilities. The second phase includes a 45 000 t/a PP unit and a 15 000 t/a MTBE (methyl tert-butyl ether) unit and the construction will be started in 2007.

2007/2/27 Asia Chemical Weekly

Sinopec and Syntroleum deal in GTL and CTL

China Petroleum & Chemical Corporation (Sinopec) and U.S. based Syntroleum Corp have signed an non-binding memorandum of understanding (MOU), to jointly develop natural gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies in China.

According to the MOU, Syntroleum will provide its proprietary Fischer-Tropsch (FT) technology and catalyst technology related to GTL and CTL to Sinopec for using in China during the period of cooperation. After signing a formal cooperation agreement, Sinopec will pay Syntroleum with $20 million per year over the next five years to support development of the technology.

The MOU also calls on Sinopec to start the feasibility studies on construction of a 700,000 tonne/year GTL plant and a 3,000 tonne/year CTL pilot plant in China. Both plants will be fully capitalized by Sinopec, while Syntroleum provides technological supports. Both partners will jointly marketing the technology in China.

The companies aim to marketing and promote FT technology to third parties within China, and the two projects are expected to be a good basis for the marketing works and provide a competitive position for two partners on GTL and CTL engineering and technology in China market.

The locations for 700,000 tonne/year GTL plant and 3,000 tonne/year CTL pilot plant is not confirmed in current. While GTL plant is hoped to be located in Sichuan by industrial observers, as Sinopec has planned to develop natural gas downstream industry in Puguang field, which is a huge gas field in Sichuan Province, Southwest China. 　四川省達州市の普光（Puguang）ガス田

2007/2/20 Syntroleum

Sinopec and Syntroleum Announce Joint Technology Development Plan
http://www.syntroleum.com/pr_individualpressrelease.aspx?NewsID=964766]

Announce Joint Technology Development Plan
The Two Parties Will Cooperate in Proving Syntroleum GTL Technologies on a Commercial Industrial Scale, and upon Successful Application, Will Jointly Market the Technologies within China

"We have conducted many years of research and testing on Fischer-Tropsch technology. We are convinced that Syntroleum's slurry column reactor technology is one of the most advanced in the world," said Mr. Cao Xianghong, Chief Engineer of Sinopec. "We believe that Sinopec's Fischer-Tropsch expertise combined with that of Syntroleum, will enable us to jointly provide world-class Fischer-Tropsch solutions to the marketplace and help meet the growing demand for this technology in China."

"Having a highly sophisticated refining and construction company like Sinopec as a partner is a major advancement of Syntroleum's business. Our FT technologies developed through extensive research are suitable for different types of plants and enable us to meet the requirements of Sinopec," said Jack Holmes, president and CEO of Syntroleum. "The full-scale 700,000 tonne per annum GTL plant to be constructed, along with the 3,000 tonne per annum CTL pilot plant will place Syntroleum and Sinopec as leaders in the Fischer-Tropsch industry in China. Together with Sinopec, we believe that our combined technology will be successful in capturing market share in China."

About Syntroleum
Syntroleum Corporation owns a proprietary process for converting natural gas or synthesis gas derived from coal and other carbon-based feedstock into synthetic liquid hydrocarbons. The company plans to use its technology to develop and participate in natural gas and coal monetization projects in a number of global locations.

2007/3/2　Platts

SunVic expanding acrylic acid, acrylate ester plants at Jiangsu 升立化工

Singapore-incorporated SunVic Chemical expects to start construction work soon for the expansion of its acrylic acid and acrylate ester plants at Xiangshui 響水 in China's Jiangsu province, it said in a statement.

The project is scheduled for completion in the fourth quarter of 2007, and would boost its AA and AE nameplate capacities by 55,000 mt/year and 40,000 mt/year respectively to 205,000 mt/year and 250,000 mt/year.

2007/1/27 SunVic Chemical

SunVic Chemical, a leading manufacturer of chemicals for industrial/consumer products, launches S$46.5 million IPO
・ Offers 155 million new shares at S$0.30 each
・ One of the leading manufacturers of AA and AE in the PRC with over 200 customers in the PRC and overseas markets

Corporate Profile
Strategically located in the Chenjiagang Chemical Zone of Yancheng 塩城 city in Jiangsu Province, SunVic Chemical currently has an annual production capacity of approximately 150,000 tonnes of AA and 210,000 tonnes of AE, which are sold to customers in the PRC as well as the overseas market. In comparison, the total production capacity of AA and AE in the PRC in 2006 is estimated at approximately 828,000 tonnes and 921,000 tonnes respectively, according to Chemical Market Associates Pte Ltd (“CMAI”), an independent consulting firm that provides advice to the petrochemical industry.
Jiangsu Province also forms part of the eastern region of the PRC, which according to CMAI, had experienced the highest growth in demand for AA and AE in the last five years. In 2005, AA and AE demand in the eastern region of the PRC accounted for approximately 64.7% and 49.5% of AA and AE demand in the PRC respectively.

AA能力

http://www.sunvic-chem.com/about.html

SunVic Chemical Holdings Limited is principally engaged in the manufacture and sale of Acrylic Acid (AA) and Acrylate Esters (AE), the fundamental ingredient used in the production of many industrial and consumer products. We currently have an annual production capacity of approx. 150,000 tonnes of AA per annum and approx. 210,000 tonnes of AE per annum. This will increase to approx. 205,000 tonnes of AA per annum with the anticipated completion of our plant expansion programme by end-2007.

Guided by a senior management team with over 65 years of combined experience in the industry, SunVic Chemical aims to become one of the largest AA and AE manufacturers in the PRC, leveraging on economies of scale, a strategic location, and a competitive operating cost structure to take advantage of the growth in demand for AA and AE in the PRC and globally.

In addition to the PRC, SunVic Chemical's strong client base of over 200 customers are located in countries such as Argentina, Brazil, Chile, Peru, United States of America, Italy, Germany, Netherlands, India, Korea, Hong Kong, Malaysia, Thailand, Japan, Taiwan and Singapore as well as various industries.

The main products which we manufacture and sell are described as follows:

2006/3/4 　Asia Chemical Weekly

China's ethylene output reached 9.41 million tonne in 2006

China's ethylene output reached to 9.41 million tonne in 2006, and raised around 24.5% from the 7.55 million tonne in 2005. Meanwhile, China's total ethylene capacity ups to 9.67 million tonne/year, from the 7.78 million tonne/year in 2005.

Three jv plants contributed mainly for the output growth last year. CNOOC Shell Petrochemical Company (CSPC) commissioned its new 800 000 tonnne/year cracker in Daya Bay in Q1 and produced 646 kt ethylene product in 2006. Shanghai Secco's output added 336 kt in 2006 and Nanjing YPC-BASF's output added 306 kt in the same year.

As for capacity, China added 1.89 million tonne/year in 2006. Besides the CSPC's 800 000 tonne/year project, there are two expansion projects - 640 000 tonne/year of Sinopec Maoming and 450 000 tonne/year of PetroChina Lanzhou.

* Added 640kt project in 2006
** Added 450kt project in 2006
*** Commissioned new project in 2006

Platts 2007/3/7

China's Sinopec Shanghai Petchem starts test runs at new MEG unit 　金山

China's Sinopec Shanghai Petrochemical Co (SPC) has begun trial runs at its new monoethylene glycol plant in the Jinshan district of Shanghai, a company source said Wednesday.

The company has been conducting trial runs at the new 380,000 mt/year plant since March 3, and the plant was reported to be running smoothly as of Wednesday although it was still unclear when the unit would be able to start on-spec MEG production, the source said.

Meanwhile, SPC's older 230,000 mt/year MEG plant remains shut down as it undergoes a maintenance turnaround that began February 10. The turnaround is expected to last for 45 days, the source said.

Mar 08, 2007 (XFN-ASIA via COMTEX)　

PetroChina plans new refinery in Sichuan

PetroChina Co Ltd, the country's largest oil and gas producer, is set to build a refinery and ethylene plant in Sichuan Province in southwest China. PetroChina signed a strategic framework agreement with the provincial government in Beijing yesterday to set up the downstream facilities in Chengdu, the Sichuan capital 四川省成都, the company said in a statement published on CNPC's online publication Oilnews.
The refinery will process 10 mln tons of oil per year and the ethylene plant will have annual capacity of 800,000 tons, it said.
Construction of the complex in Chengdu is expected to be completed by 2010.
The ethylene project has been given approval by China's top economic planner, the National Development and Reform Commission (NDRC), while the refinery is pending approval from regulators.
It did not disclose the investment involved but industry sources said the investment will be more than 50 bln yuan, with the ethylene cracker costing around 20 bln yuan.
Upon completion, the plant will supply polyethylene and glycol to meet demand in the under-supplied southwest, the company said.

In February, the NDRC said it approved PetroChina's proposed oil refinery in Qinzhou, Guangxi province 広西壮族（チワン族）自治区欽洲　in southwest China.
Investment in the refinery will total 15.2 bln yuan. It is expected to come onstream in 2008.
The refinery will have annual capacity of 10 mln tons, the first refinery in the southwest of China to have that level of output.
The Guangxi refinery will be PetroChina's first major refining facility in southern China, the stronghold of China's largest refiner Sinopec Corp.

70% of investment from PetroChina and 30% from Sinopec

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March 7, 2007 fibre2fashion.com

China : PetroChina to build oil refinery & chemical plant

In order to expand fuel and chemical output in southwestern China, PetroChina Co Ltd, the largest oil company of the country, plans to build a refinery and ethylene plant at a cost of more than 50 billion yuan ($6.5 billion) in Sichuan province.

An agreement for the project will be signed by the authorities of PetroChina and Sichuan government that includes the refinery and chemical project in the provincial capital of Chengdu.

The refinery will process about 200,000 barrels of oil a day. The ethylene cracker will make 800,000 metric tons of the chemical annually.

The oil companies in China are increasing their refining and chemical production in order to meet demand in the world's fastest-growing major economy.

China wants to increase its oil-processing capacity by 25 percent and double the ethylene production capacity by 2010 to reduce the imports of the chemical.

PetroChina is planning to build a $2.6 billion plant in that Shaanxi Province to make ethylene, which is used to manufacture synthetic fibers. The plant will have annual output of 1 million tons of ethylene. 陝西省　

The company had also started the construction of a 15.2 billion yuan refinery in Qinzhou, a city in southwestern China's Guangxi Province. The plant will be able to process 10 million tons of crude a year. 広西壮族（チワン族）自治区欽洲

PetroChina processed 785 million barrels of crude into fuels last year, an increase of 4.3 percent from 2005. Its ethylene production last year rose 9.5 percent to 2.07 million tons.

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2007/3/7 Bloomberg

PetroChina Plans $6.5 Billion Fuel, Chemical Project

PetroChina Co., the nation's largest oil company, plans to build a refinery and ethylene plant at a cost of more than 50 billion yuan ($6.5 billion) in Sichuan province to expand fuel and chemical output in southwestern China.

PetroChina and Sichuan authorities will sign an agreement for the project today, provincial Communist Party Chief Secretary Du Qinglin said in an interview in Beijing. The refinery will process about 200,000 barrels a day of oil. The ethylene cracker will make 800,000 metric tons of the chemical annually, he said.

Chinese oil companies are expanding refining and chemical production to meet demand in the world's fastest-growing major economy. China wants to increase oil-processing capacity 25 percent and more than double ethylene production capacity by 2010 to reduce reliance on imports of the chemical.

The project is in a region of China ``that lacks a big refinery or cracker,'' Liu Gu, an oil analyst at Guotai Jun-an Securities HK Ltd., said by telephone from Shenzhen.

PetroChina will sign a framework agreement with the Sichuan government that includes the refinery and chemical projects in the provincial capital of Chengdu, said spokesman Cao Zhengyan.

Cao and Du wouldn't say when the Sichuan project would start operating. China relies on imports for half of its ethylene consumption and produced 9.41 million tons of the chemical last year, the National Development and Reform Commission said Jan. 31. China has 7.2 million tons of capacity to produce the chemical under construction, it said.

Shaanxi Province 　　　　　発表
PetroChina is planning to build a $2.6 billion plant in that Shaanxi Province to make ethylene

Officials from Shaanxi today said PetroChina may build a $2.6 billion plant in that province to make ethylene, a chemical used to manufacture plastics and synthetic fibers. The plant will have annual output of 1 million tons of ethylene, Li Xiaodong, head of Shaanxi's development and reform commission, told reporters in Beijing, without saying when the project would be built.

PetroChina planned 2006 capital spending of more than $20 Billion. Du and Cao didn't give details of how the Sichuan project would be funded.

``Investment won't be a problem for PetroChina, which has budgeted sufficient spending for its development in both exploration and downstream refining businesses,'' Guotai Jun-an Securities' Liu said.

The projects are still at the initial planning stage and ``need to be in line with the nation's general petrochemical projects plan and pass environment assessment, which is getting more and more strict, before getting final state approval,'' Liu said.

Lending Curbs

The project announcements come days after Chinese Premier Wen Jiabao said the country will do more to curb investment and lending. China will crack down on polluting factories and boost spending on farmers and low-income earners, Wen said in a March 5 address to the National People's Congress in Beijing.

China's investment in factories, roads and other fixed assets climbed 24.5 percent in 2006, the government said Jan. 26.

PetroChina's Sichuan project would rank among the largest investments of its kind in Asia. Reliance Petroleum Ltd., a unit of India's biggest company by market value, is spending $6.1 billion on building a 580,000 barrel-a-day plant next to its 660,000 barrel-a-day facility at Jamnagar in Gujarat state, making it the world's largest refining complex on one site.

Saudi Arabian Oil Co., Exxon Mobil Corp. and China Petroleum & Chemical Corp. last month agreed to triple output at a refinery in southeast China and build new chemical plants.

Increased Refining

Production at the Fujian refinery will increase to 240,000 barrels a day from 80,000 barrels. An initial accord was signed in August 2004 and the project at the time was valued at $3.5 billion.

PetroChina said in December it started construction of a 15.2 billion yuan refinery in Qinzhou, a city in southwestern China's Guangxi Province. The plant will be able to process 10 million tons of crude a year.

China National Petroleum Corp., PetroChina's parent, said March 23 it plans to spend about 180 billion yuan during the next five years to boost refining and chemicals capacity and increase domestic sales.

PetroChina processed 785 million barrels of crude into fuels last year, an increase of 4.3 percent from 2005, the company said Jan. 15. Its ethylene production last year rose 9.5 percent to 2.07 million tons, it said.

China, which imported a record amount of oil in January, will take measures to ensure manufacturing projects meet targets to reduce energy use, the head of its top economic planning body said this week.

``We will follow an energy saving evaluation and examination system for fixed-asset investment projects and make energy efficiency a mandatory criterion'' for their approval, Ma Kai, head of the National Development and Reform Commission, said March 5.

Mar 09, 2007 (Hugin via COMTEX)

Aker Kvaerner wins Polypropylene project in China 広西チワン自治区

Aker Kvaerner has been awarded a contract with China Petroleum Material & Equipment (Group) Corporation (a subsidiary of China National Petroleum Corporation 中国石油天然ガス総公司 ) for the basic engineering design and supply of certain equipment for a new Polypropylene plant at the PetroChina GuangXi Petrochemical Company complex in GuangXi Province広西チワン自治区, People's Republic of China. The contract value to Aker Kvaerner was not disclosed.

The new Polypropylene plant will have a capacity of 200,000 metric tons per annum (tpa). Plant start-up is expected in 2008.

"We're already involved with their new full density Polyethylene plant at the Dushanzi 独山子complex in Xinjiang province. Given our in-depth experience across a large proportion of the UNIPOL(TM) PP lines around the world, coupled with our considerable local knowledge of working in the Chinese market, we are well placed to execute this project to a high quality and on schedule," he added.

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March 09, 2007　Dow

New PetroChina GuangXi Polypropylene Plant to Utilize UNIPOL™ PP Process Technology Licensed Through Dow

Dow Technology Licensing, a business group of The Dow Chemical Company and its consolidated affiliates (Dow), today announced that its world-leading UNIPOL™ PP Process Technology has been selected for a new 200 KTA polypropylene (PP) facility to be constructed at the PetroChina GuangXi Petrochemical Company complex in GuangXi Province, The People’s Republic of China.

2005/9/28

Aker Kvaerner wins further Polyethylene project in China

Aker Kvaerner has signed a contract with PetroChina International Company Ltd., for the basic engineering design and supply of certain equipment for a new full density Polyethylene plant at the Dushanzi complex in Xinjiang province, People's Republic of China.

Aker Kvaerner will provide the basic engineering design, together with offshore equipment and material supply, from its offices in the Netherlands and China. Dushanzi is an integrated ethylene cracking complex with downstream facilities for the production of a wide range of polymer products.  The new full density polyethylene (FDPE) plant consists of two lines each with a capacity of 300,000 tonnes per annum (tpa). The project, to be executed on a fast-track basis, will commence this month. Plant start-up is expected in September 2008.  

2007/3/9 China Chemical Reporter

CNPC to Build Bio-energy Project in Shandong

On March 4th, 2007 China National Petroleum Corporation (CNPC) signed a Framework Agreement on Bio-energy Development with Shandong Provincial Government.
Under the agreement, both parties intend to jointly manufacture fuel alcohol and bio-gasoline using non-food corns as raw materials. That is to say, both sides plan to build 200 000 t/a fuel alcohol project and bio-gasoline demonstration facility with a total capacity of 100 000 t/a as well as matching feedstock production and supply bases. They would launch relevant research and development for it and market fuel alcohol in Shandong province.
CNPC plans to expand its non-food fuel alcohol capacity, exceeding 200 million tons per year by the end of the Eleventh Five-year Program period (2006-2010).
Shandong Province is abundant in natural resources and seasonable in environment with a rapid development in recent years.
The move is consistent with both sides' strategies to promote the development of bio-energy in China.

2007/3/11 Asia Chemical Weekly

ERTISA plans phenol/acetone project in Shanghai

ERTISA Chemical, a subsidiary of Spanish CEPSA, has planned a large-scale phenol/acetone project in Shanghai Chemical Industry Park, Shanghai.

With total investment of USD 130 million, the proposed project has capacity of 250 000 tonne/year phenol and 150 000 tonne/year acetone. It will be invested solely by Spain's ERTISA Chemical, and is expected to start up by 2009.

The project will get license technology from Sunoco/UOP to produce phenol/acetone through the cumene route. According to the introduction by UOP, currently, Sunoco/UOP phenol technology is used in eleven plants worldwide, and has total phenol capacity more than 1.5 million tonne/year, as well as four other projects with total design capacity of 600 000 tonne/year are in construction and design.

In the initial stage, cumene feedstock will be sourced from overseas market, particularly from S. Korea and Japan. A 10 million tonne/year refinery and a 1 million tonne/year ethylene cracker planned in SCIP, which jointly invested by Sinopec and SCIP Development Company. The planned ethylene cracker may provide feedstock in the future.

According to the planning, ERTISA's phenol/acetone output is hoped to match the demands from PC units of Bayer in SCIP. Bayer operates a 100 000 tonne/year PC plant and will expand to 200 000 tonne/year in the future.

Also in SCIP, Sinopec Gaoqiao Petrochemical operates a 124 000 tonne/year phenol and a 76 000 tonne/year acetone and a 162 400 tonne/year cumene facilities. It will supply feedstock for the constructing 120 000 tonne/year BPA jv between Sinopec and Mitsui Chemical in the same site.

ERTISA is a wholly owned company by CEPSA, is the sole Spanish manufacturer of phenol, acetone, methylamines and derivatives. CEPSA is integrated petrochemical company, whose business including petroleum exploration and production, refining, transport and marketing of petroleum derivatives, and manufacture of plastics, synthetic fibres, etc.

ERTISAはCEPSAの100%子会社で、スペイン唯一のフェノール／アセトンのメーカー。
CEPSAは石油・石油化学の総合メーカーで、石油の探鉱・開発から精製、輸送、販売と合成樹脂、合成繊維、洗剤原料等の生産販売を行っている。
石油化学ではフェノールのERTISAのほか、芳香族のPetrocepsa、アルキルベンゼン等のPetresa、PTA等のInterquisa の各子会社を通じて製品を販売している。

CEPSA
http://www.cepsa.com/corporativo/pages/c_1_0-eng.htm

CEPSA is today a modern group of firms, with a far-ranging national and international business in the energy sector. It operates in numerous European countries, as well as in Algeria, Canada, Morocco, Brazil, and Panama.

CEPSA is a leader in activities relating to petroleum and petrochemistry, including exploration, production of crude, refining, transport and marketing of petroleum derivatives, and the manufacture of added-value petrochemical products, such as plastics, synthetic fibres, and detergents.

With over 9000 professionals committed to its objectives, the Group is a dynamic organization with a solid financial structure, with advanced industrial equipment, and with efficient marketing networks.

CEPSA and its group of companies focus on a strategy aimed at developing and consolidating their businesses, with product and service quality being a top priority.

CEPSA is firmly committed to ensuring the highest safety standards in all of its facilities and operations. Because the company strongly believes that prevention is a key component in protecting the environment, CEPSA has been channeling considerable resources towards the ongoing improvement of its environmental performance, complying at all times with Spanish and European Union standars and specifications

CEPSA always looks for the client's satisfaction and for the welfare of society in general. At CEPSA, innovation and service are our reason for being.

-------------

Petrochemicals

Seeking to work as closely as possible with the refineries, CEPSA is intensely active in petrochemistry. It manufactures such added-value products as plastics, synthetic fibres, and detergents. It constantly updates technology and strictly controls quality.

In what follows we look at the main activities of CEPSA in the area of petrochemistry.

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2008/1/21 Platts 　　　　　　　

Spain's La Seda defers plan to acquire Cepsa's Interquisa

La Seda de Barcelona's plan to acquire Cepsa petrochemical subsidiary Interquisa, through a Eur595 million ($869 million) cash payment and share transfer operation, has been put on hold indefinitely.


The proposed acquisition, announced December 19, would have entailed La Seda acquiring Interquisa's PTA and PIPA manufacturing plant at San Roque in southern Spain, with annual capacity of 630,000 mt and 85,000 mt, respectively, and 51% of Interquisa Canada, which has a 550,000-mt/year PTA plant at Montreal.

In exchange, Cepsa was to have gained a 12% stake in La Seda.

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May 28, 2008

CEPSA Announces the Merger of its Petrochemical Subsidiaries and Activities Into a Single Company: CEPSA Quimica

· ERTISA, INTERQUISA and PETRESA will be merged into one company called CEPSA Química, S.A.

· Fernando Iturrieta, CEPSA's Senior Vice President of Petrochemicals, will assume the position of Chief Executive Officer of CEPSA Química.

· The new organizational model will enhance the competitiveness and strengthen and drive the capabilities of the company's petrochemicals segment, maximizing cost efficiencies.

CEPSA has approved the decision to merge its three chemical subsidiaries- ERTISA, INTERQUISA and PETRESA - into a single company called CEPSA Química, S.A. that will likewise handle the commercial operations for the chemical products manufactured at CEPSA's refineries, an activity that until now was undertaken by PETROCEPSA, which will also be merged into the new company. This streamlined organizational model will enhance the competitiveness and capabilities of CEPSA's petrochemicals businesses, in response to changing marketplace dynamics.

CEPSA Quimica, headed by Fernando Iturrieta, who has been appointed its CEO, will be structured into five major areas.

The Production area will drive operational excellence throughout the company's six petrochemical plants, disseminating best practices across the board in order to achieve a greater degree of efficiency and agility in production processes.

The Commercial area, in charge of sales operations in the five key business lines, has an integrated logistics unit and a network of sales offices that will ensure continued delivery of premium service quality.

Development & Innovation will shape the strategy of the petrochemical company and focus on new business development and product innovation.

Administration & Control and Human Resources will provide support and service to the entire organization, regardless of the geographical location of each of the areas.

The creation of a single identity for the Petrochemicals division will strengthen its internal and external relevance, significantly raise the skill level to ensure excellence in business management and processes at all levels of the organization, maximize cost efficiency, increase management transparency and accountability and set the stage for a new wave of innovation and growth.

CEPSA's petrochemical activity has been tightly integrated with the company's refining operations.

CEPSA Quimica produces and sells a range of specialized petrochemical intermediates, such as detergent precursors; polyester precursors; cumene, phenol, acetone and other derivatives used in the pharmaceutical industry and for the production of resins as well as new?generation plastics, synthetic fibers and solvents.

With a workforce of around 1,500 employees, CEPSA Quimica has manufacturing plants in Spain, Brazil and Canada and markets its products across the globe.

CEPSA Petrochemicals

ERTISA

ERTISA, which is a subsidiary of CEPSA, has a plant on the industrial estate Nuevo Puerto, in Palos de la Frontera. It works closely with the refinery at La Rabida.

ERTISA's "Reina Sofia" port terminal dispatches finished products, most of which are exported through its sister companies in Great Britain (Ertisa G.B. Ltd) and Holland (Ertisa Netherlands B.V.)

ERTISA's commercial and industrial operations involve two product lines, on the one hand cumene, phenol, and acetone, and on the other methylamines and their derivatives.

Some of their many uses:

Petrocepsa

This is the Group firm that markets products made in the Gibraltar-San Roque and La Rábida refineries.

Other firms in CEPSA use some of these products, such as benzene and paraxylene, as raw materials in their processes.

CEPSA has in addition CEPSA Italia, CEPSA Reino Unido [CEPSA United Kingdom], and CEPSA Portuguesa [Portuguese CEPSA] for the marketing of basic petrochemical products.

Petresa

With plants in Spain, Canada, and Brazil, this subsidiary of CEPSA is world leader in the production of linear alkylbenzene (LAB), a raw material for detergents. Its capacity is 560,000 tons per year.

Working closely with the Gibraltar refinery, PETRESA at its San Roque plant takes in kerosene, hydrogen, benzene, sulphur, and naphthas as raw materials. PETRESA returns to the refinery hydrogenated kerosene free of n-paraffins, which is an excellent fuel for jet engines.

PETRESA at San Roque also produces n-paraffins, which it supplies to Group plants in Canada and Brazil for use as raw material.

Innovation in processes, along with the most advanced technology, ensures the top quality of PETRESA products.

Interquisa

Sited in San Roque, for its processes INTERQUISA receives paraxylene from the Gibraltar refinery, with which it is very closely integrated.

INTERQUISA is the only producer in Spain of purified terephthalic acid (PTA), dimethyl terephthalate (DMT), and purified isophthalic acid (PIPA), raw materials for the manufacture of polyesters. It manufactures and markets 750,000 tons annually of PTA, 80,000 of DMT, and 30,000 of PIPA.

To sell its products on the NAFTA market (US, Canada, Mexico), INTERQUISA, in collaboration with the Sociétée Générale de Financement de Québec (SGF), is using the most advanced technology in building a new plant at Montreal, with an annual capacity of 500,000 tons of PTA.

Interquisa Canada produces Purified Terephtalic Acid (PTA) required for the manufacturing of various types of polyesters. Its petrochemical plant has been operating since September 2003 and can produce 500,000 metric tons per year.

PTA is a raw material used to produce polyethylene terephthalate (PET) for the North American market (textile fibres, plastic bottles, films). It also enters in the production chain of other polymers used for the manufacturing of powder resins mainly found in paints and adhesives.

Interquisa Canada is one of three North American PTA manufacturers. It is strategically located in the heart of Montréal’s petrochemicals cluster and is both a customer of ParaChem Chemicals and a supplier to PTT Poly Canada, both SGF partners. This facilitates development of integrated production chains. Interquisa Canada is a subsidiary of CEPSA (Spain).
SGF participation: 49%

INTERQUISA plans to enlarge the capacity of its facilities at San Roque to accommodate another 350,000 tons annually of PTA.

2007/3/20 Asia Chemical Weekly

Kingboard invests coal based methanol in Hebei

On Mar.18, 2007, Kingboard has started construction for its 1 million tonne/year tamping coke, 100,000 tonne/year methanol and 12,000 tonne/year benzene projects in Neiqiu(内丘), Xingtai city, Hebei Province. The project is scheduled to start up in early 2008.

This is the second stage project; Kingboard has commissioned its first stage project in the same site with the same designed capacities costed RMB 900 million (USD 116 million). With investment RMB 750 million (USD 96.7 million) in the second stage, the company will double its methanol capacity to 200,000 tonnes/year in 2008.

Also, Kingboard is planning a mega methanol jv project with coal producer Jinniu (金牛) Energy Resources Company. Jinniu is a Shenzhen listed company based in Hebei Province.

With total investment HKD 3.5 billion (USD 448.1 million), the proposed project will has coal based methanol capacity of 1.8 million tonne/year. It will be a 60:40 jv project between Kingboard and Jinniu, location is expected to be Xingtai, Hebei province, while the startup date is not confirmed as the project is under feasibility study still.

Besides the 60:40 methanol jv, Kingboard and Jinniu would also form a 49:51 coal mine jv, to secure the coal supply.

China produced 7.62 million tonne methanol in 2006, and net import of methanol was around 940,000 tonne in the same year.

Kingboardは海南島でCNOOCとのJVで天然ガス原料で60万トンのメタノールを生産しており、重慶市でも45万トンの工場を持っている。

China Chemical Reporter 2007/3/20

Musashi Paint Puts Tianjin Plant on Stream　　　武蔵塗料

The new plant constructed by Musashi Paint Co., Ltd. of Japan in Tianjin was recently started commercial production. The plant was completed in summer of 2006 and wet commissioning was conducted afterwards. It will mainly produce coatings for mobile phones and electronic apparatuses.

Musashi Paint Co., Ltd. has constructed plants in Zhongshan of Guangdong province in South China and in Kunshan of Jiangsu province in East China. The start of production in the plant located in North China shows that Musashi Paint Co., Ltd. has already established its own production bases in the Yangtze River Delta（揚子江デルタ）, the Pearl River Delta(珠江デルタ） and the Ring Bohai Region（環渤海地区）, the 3 major regions with concentrated coatings industry.

Musashi Paint(Kunshan)Co., Ltd. (Kunshan, JIANGSU) 江蘇省昆山市
HUAYANG SCIENCE INDUSTRIAL PARK IN ECONOMIC TECHNIQUE DEVELOPMENT AREA, KUNSHAN


Zhongshan Musashi Paint Co., Ltd. (Zhongshan, GUANGDONG) 広東省中山市
2, HONGYE ROAD, ZHONGSHAN TORCHI-TECH INDUSTRY
DEVELOPMENT ZONE, ZHONGSHAN

2007/4/3 Asia Chemical Weekly

Sinopec gets approval for ethylene project in Wuhan 　　湖北省武漢市

Sinopec has got the approval from National Development and Reform Commission (NDRC) for its ethylene project in Wuhan , Hubei Province.

The project will operated by Wuhan Petrochemical, a subsidiary of Sinopec. With the investment around USD 1.9 billion (RMB 14.7billion), the project has designed capacity of 800,000 tonne/year. It is a part of the 11th five-year plan (2006-2010) in China and hoped to start construction in H2 2007 and come on stream in 2010.

The main derivatives units for the proposed project include:
LLDPE 300,000 tonne/year
HDPE 300,000 tonne/year
PP 400,000 tonne/year
Ethylene oxide 100,000 tonne/year
Ethylene glycol of 380,000 tonne/year

Naphtha feedstock will be secured by the refinery of Wuhan Petrochemical, which is planned to expand refining capacity to 8 million tonne/year from the existing 4 million tonne/year.

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2007/4/5 MarketWatch

Sinopec in talks with foreign companies on ethylene investment

China Petroleum & Chemical Corp., better known as Sinopec, is in talks with foreign companies for joint investment in its planned $1.9-billion ethylene facility in Wuhan city, central China, a senior Sinopec official said Thursday.
SK Corp., South Korea's largest refiner by capacity, and Formosa Plastics Group, Taiwan's leading petrochemical producer, are among the foreign companies in talks with Sinopec for the first large-scale petrochemical complex in central China, according to people in the industry.

　

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2007/4/23 Yonhap 　　　事前情報

SK Corp. to build naphtha cracker in China

South Korea's biggest refiner SK Corp. said Monday it plans to construct a naphtha cracking center in China in partnership with Sinopec Corp., China's state-run petrochemical company.

The facility with an annual capacity of 800,000 tons of ethylene will be built in Wuhan, a city in central China, a company official said, speaking on condition of anonymity.

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May 22, 2008 (AsiaPulse via COMTEX)

SK Energy to sign naphtha cracker deal in China

South Korea's biggest refiner SK Energy Co. said Thursday it plans to sign a preliminary deal with Sinopec Corp., China's state-run petrochemical firm, to set up a joint venture to build a naphtha cracking center in China by 2010.
The deal that SK Energy has been pushing for since last year will be signed with Sinopec next week during South Korean President Lee Myung-bak's visit to China, a company official said, speaking on condition of anonymity.
The facility with an annual capacity of 800,000 tons of ethylene will be built in Wuhan, a city in central China.
"The details of the project have yet to be decided and SK Energy plans to reveal them after clinching a formal contract," the official said.
Chey Tae-won, chairman of the refiner, attended the ground-breaking ceremony of the plant held on December 18, last year at the invitation of Sinopec.
Ethylene is a colorless flammable gas derived from natural gas and petroleum, and used as a source for many organic compounds.

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2008/5/28 　人民日報

Sinopec to build ethylene joint venture with ROK's SK Energy in central China

China Petroleum and Chemical Corporation (Sinopec) announced on Wednesday it planned to tie up with SK Energy Co., the biggest oil refiner in the Republic of Korea (ROK), to construct an ethylene project in Wuhan, capital ofthe central Hubei Province.

The framework agreement was signed by both companies during ROK President Lee Myung-bak's visit to Beijing. The project will be the largest investment the country has made in China.

According to the framework agreement, Sinopec and SK will sign the contract for joint investment this year. SK will hold a 35 percent stake in the project, which has an estimated investment of more than 14 billion yuan.

Preliminary work is being done by both companies and the joint venture will be established after receiving permission from the Chinese government.

Construction of the project launched at the end of last year. When completed in late 2011, the plant will annually produce 800,000 tons of ethylene.

It will also produce key petrochemical products, including 300,000 tons of high-density polyethylene, 300,000 tons of linear low density polyethylene and 400,000 tons of polypropylene.

Both companies also planned to increase investment to enlarge the cooperation to other petrochemical products besides ethylene, Sinopec said.

China's booming economy has boosted its demand for ethylene, a major petrochemical raw material used to make synthetic fiber, synthetic rubber and synthetic plastics.

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2009/4/13 上海発

韓国SK、武漢エチレン計画への参加を延期

韓国のSKエナジーは昨年5月28日、シノペックの武漢エチレン計画に35%出資することで合意したことを明らかにした。アジア勢としては初めてのエチレン計画への参加で、韓国の李明博大統領の就任後初めての中国訪問に合わせて発表された。

正契約は2009年下期に調印される予定であったが、本年4月初め、中国SKのトップが中国メディアに対し、現在の経済危機のなかで、SKに十分な資金がないとして、この投資を延期することを明らかにした。

同社としては撤退の考えはなく、当初の構想どおり、エチレン計画に 35%の出資をする予定としている。

シノペックの武漢エチレン計画は2007年4月にNDRCの認可を得ており、2007年12月にはシノペックはこれの鍬入れ式を行っている。
2011年下期にスタートの予定で、本年3月にはイネオスから30万トンのHDPEについてライセンスを受けている。

計画は80万トンのエチレンコンプレックスを建設するもので、以下の誘導品が含まれている。
　　LLDPE　 300千トン
　　HDPE 　300千トン
　　PP 　　　400千トン
　　EO　　　100千トン
　　EG　　　380千トン

なお、業界筋の情報では、4月2日に武漢市当局とシノペック副社長がエチレン計画について話し合いを行っており、シノペックは現在の経済危機のなかでも武漢エチレン計画の戦略を変更しないと明言した。

SKの参加が遅れても、計画の変更はない模様。

2007-4-4 China Chemical Reporter

Chitianhua to Build Coal Chemical Project 貴州赤天化

    Guizhou Chitianhua Co., Ltd. 貴州赤天化股フェン有限公司 and Guizhou Xidian Power Co., Ltd. will form a joint venture (JV), named Guizhou Jinchi Chemical Co., Ltd., to build coal chemical facility in Tongzi, Zunyi of Guizhou province, Chitianhua said on March 29th.
    The 50: 50 JV will have an initial registered capital of RMB100 million, and construct 300 000 t/a synthetic ammonia, 200 000 t/a methanol, 520 000 t/a urea and 200 000 t/a compound fertilizer projects as well as power and utilities, following the approval by Guizhou Development & Reform Commission.
    Chitianhua plans to issue convertible bonds and raise funds for the facility.
    Located in Guiyang, Guizhou province, Chitianhua is leading fertilizer producer in Guizhou province across China.

2007/4/12 China Chemical Reporter

YPC Constructs 100 000 t/a Butadiene Unit

On March 20th, 2007 Sinopec Yangzi Petrochemical Company Ltd. (YPC) started the construction of the 100 000 t/a butadiene unit in Nanjing, Jiangsu province. The unit is expected to be completed and conducted intermediate handing-over on December 30th, 2007.
In 2002 YPC started to construct another 53 000 t/a butadiene production line on the basis of the existing 53 000 t/a one in order to make the total butadiene capacity doubled. Added by the newly built 100 000 t/a butadiene unit, the total butadiene capacity in YPC will exceed 200 000 t/a.
Nanjing Yangzi Petrochemical Engineering Corporation has generally contracted for the project's construction. Shanghai Engineering Corporation and Yangzi Petrochemical Design Engineering Corporation will jointly take charge of the design work.

Platts 2007/4/13

China's ethylene output to hit 16 mil mt/year in 2010

China's total ethylene production was expected to hit 16 million mt/year in 2010, compared with just over the 10 million mt projected for 2007, said Qin Wei Zhong, Director, Planning and Development at Sinopec, Thursday, at the seventh Asia/China Chlor-Vinyls conference.
Qin said China's ethylene consumption would likely increase to 25 million mt/year in 2010 compared with 20 million mt/year in 2007.

Apr 17, 2007 China Chemical Reporter

Yuntianhua Breaks Ground POM Project in Chongqing

On April 12th, 2007 Yunnan Yuntianhua Group Co., Ltd. (Yuntianhua) held the ground breaking ceremony for its 60 000 t/a POM (polyformaldehyde) production line in Changshou Chemical Industry Park, Chongqing. The project is planned to invest RMB2 billion. The whole project is made up of three POM production units, each of which has a capacity of 20 000 t/a. The first-phase unit and the other two are expected to be completed in July 2008 and 2010 respectively.
POM is an engineering plastic with perfect mechanical property. Yunnan Yuntianhua Group Co., Ltd. is the largest POM manufacturer in China. Headquartered in Yunnan province, Yuntianhua already has two POM production lines there with a total capacity of 30 000 t/a. Adjacent to Yunnan province, Chongqing has abundant natural gas reserve and raw materials.

Yunnan Yuntianhua mainly produces urea, ammonium nitrate, pentaerythritol, sodium formate and polytrioxane. The leading Jinshajiang Brand Urea is Famous-Brand product in the domestic large-scale fertilizer enterprises, and won the National High-Quality Golden Medal two times and was affirmed as Inspection-Free product in 2002. The Jinshajiang Brand ammonium nitrate is best-quality product at the ministerial level. The quality of pentaerythritol is the best in China. Polytrioxane satisfies the surplus demand. The company passed the ISO9000 quality system accreditation in 2001 and the accreditation of ISO14000 environmental control system in 2003.
The company manages fertilizer, chemical materials and products production and sales. It owns plants as: 500,000 t/a ammonia plant, 760,000 t/a urea, 110,000 t/a ammonium nitrate , 10,000 t/a pentaerythritol, and 10,000 t/a polytrioxane, etc.
Recently the company expands its scope by capital operation, covering information network industry, finance, and stock, etc, and it challenges the new material industry by controlling the stock of Chongqing Polycomp International Corp and Chongqing Tianwei New Materials Co., Ltd and establishing a 100, 000 t/a fiberglass production base.
Through years of efforts, the company has developed into a fast-growing, comprehensive listed company with fertilizer, organic chemical and new materials production altogether.

日本経済新聞　2007/4/18

石油・ガス　中国、ミャンマー沖で権益　パイプライン共同建設

　ミャンマー政府筋によると、軍事政権は中国国有の中国石油天然気集団(ペトロチャイナ)に�@ミャンマー西部ラカイン州沖合で開発中の天然ガス田「シュエ・ガス田」のガス購入権�A同州西部の港湾都布チャオビューから中国に向けたガスパイプラインの共同建設�B同州西部の港湾都市シットウェから雲南省までの原油パイプラインの建設…の３点を認めると決定。近く正式に合意文書に署名する見通し。
　

　2006/5/30　中国の石油関連 海外進出 ではSINOPECが交渉相手とした。

China Chemical Reporter 2007/4/18

China Announces Energy Program

On April 10th, the National Development & Reform Commission announced the "Energy Plan for the Eleventh Five-Year Program Period (2006-2010)".
Under the latest plan, energy consumption is forecasted to increase by an annual growth of 4% during 2006-2010, which will amount to 2.7 billion tons of coal equivalent by 2010. Energy output is projected to rise by an annual growth of 3.5% during the same period, which will be 2.45 billion tons of coal equivalent by 2010.
In 2010, the targeted ratio of coal in total energy consumption is 66.1%, down from 69.1% in 2005; oil, 20.5%, down from 21%; natural gas, 5.3%, up from 2.8%; nuclear, 0.9%, up from 0.8%; hydro power, 6.8%, up from 6.2%; renewable energy, 0.4%, up from 0.1%.
The report also says that China aims to increase output of crude oil to 193 million tons in 2010. The output of natural gas in 2010 is planned to be 92 billion cubic meters.

2007/4/27 Asia Chemical Weekly

Cangzhou Dahua plans TDI expansion project in Hebei

Cangzhou Dahua （滄州大化） Group plans to expand its toluene diisocyanate (TDI) capacity in Lingang Chemical Industry Park (臨港化工區), Cangzhou, Hebei Province.

The company has two TDI production sites. One is operating a 30,000 tonne/year TDI plant in Cangzhou City; another is constructing a 50,000 tonne/year TDI project, which to be started up in 2008 in Lingang Chemical Industry Park, where is a development zone nearing the sea harbor.

This time, Cangzhou Dahua plans to expand the capacity in Lingang to 100,000 tonne/year by building a second line with capacity of 50,000 tonne/year. After the expansion, Cangzhou Dahua will have total TDI capacity 130,000 tonne/year. Currently, the financial details and schedule is not disclosed.

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2007-05-11 chinadaily.com.cn

2,000 evacuated after explosion

Three people have been killed and dozens injured after a workshop in a chemical factory in north China exploded, rescuers said on Friday afternoon.

The blast occurred at 1:40 p.m. on Friday at a workshop in Cangzhou Dahua TDI Co. Ltd. in Hebei province, according to the provincial work safety bureau.

"The blast in the nitration workshop section led to a fire in the toluene supply slot," said Li Li, a spokeswoman for the Cangzhou city government.

Most of the injured suffered bruising and scratches to the head and face and are receiving medical treatment. The injured included company workers and local residents.

Hospital sources said some workers suffered serious burns and all the injured are being treated in hospital.

The fire caused by the blast was put out around 4:30 p.m. on Friday.

The workshop's power and water supplies were cut off immediately after the accident and more than 2,000 residents in a nearby village were evacuated in case of a possible toxic gas leak.

The company is one of the major TDI producers in China. TDI, or Toluene diisocyanate is primarily used as a chemical intermediate in the production of polyurenthane products.

Investigations into the cause of the explosion are underway.

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2007-11-14　CCR

Cangzhou Dahua TDI Facility Restarts

Cangzhou Dahua Co., Ltd. announced on November 10th its TDI (toluene diisocyanate) Company Ltd. has restarted and gone back on stream by repairing its facilities. Due to no completion of the repair for the nitration section, Cangzhou Dahua will purchase dinitrotoluene (DNT) for the production of TDI.
In May 2007, an explosion happened in the nitration facility in Cangzhou Dahua's TDI Company, located in North Suburb of Cangzhou City, which caused 5 death and 80 injuries, and destroyed the power system. The plant produces 30 thousand TDI per year.

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2008-2-18 Asia Chemical Weekly 　　　単独計画 →　爆発　→　 再稼動

Cangzhou Dahua and SK plan TDI jv project in Hebei

On Feb. 2, 2008, Cangzhou Dahua (滄州大化) Group and SK (China) Investment Co. signed an Letter of Intent (LOI) for setting up a jv to conduct the ongoing TDI project and build other projects in Lingang Chemical Industry Park (臨港化工區), Cangzhou, Hebei Province.

The negotiation about the jv between two partners started from Sep. 2007. According to the LOI this time, the two partners will setup a jv with proposed name of Cangzhou Dahua-SK Co., Cangzhou Dahua will contribute the under construction 50,000 ton/year TDI project to the proposed jv and hold the major shares (60%-70%), while SK will hold the rest. While financial details are not disclosed currently.

The LOI also mentions that based on the ongoing 50,000 ton/year TDI project, the proposed jv will build another 100,000 ton/year TDI, 60,000 ton/year DNT, a 160,000 ton/year caustic soda, and a 100,000 nitric acid project in the same site. Earlier, Cangzhou Dahua announced the new project is expected to start in H1 of 2009 and to be completed in 2012.

・JV's TDI capacity will be 50,000tpa + 100,000tpa.
・Cangzhou Dahua is constructing a 60,000 tpa DNT project for TDI feedstock supply in Lingang Chemical Industrial Park. Whether or not the DNT project assets will inject to the new jv is still under discussion.

Cangzhou Dahua Group is a subsidiary of ChemChina, in 2006, ChemChina acquired 60% share from Cangzhou Dahua Group. The company has two TDI production sites. One is in Cangzhou City which operating a 30,000 tonne/year TDI plant; another is in Lingang Chemical Industry Park, which is constructing 50,000 ton/year TDI project and is hoped to startup by the end of 2008.

In May of 2007, Cangzhou Dahua’s 30,000 tonne/year TDI plant has an explosion which caused a half-year close and the company restores the TDI production in Nov. 2007.
This 30,000tpa plant will be operated by Cangzhou Dahua.

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With 580,000 tonne/year urea and 300,000 tonne/year ammonia capacity, Cangzhou Dahua is based in Hebei Province, and listed in Shanghai Securities Exchange. Currently, it is the third largest TDI producer in China, following the BASF and Gansu Yinguang (甘肅銀光).

Output and consumption of TDI in China (kt)

S. Korea and Japan is the top TDI exporter to China. In 2006, China imported 163 kt TDI in total, while 52 kt is from S.Korea and 46 kt is from Japan. China’s TDI imports will reduce hugely in 2007 as the BASF has start full commercial operation this year with capacity 160,000 tonne/year.

TDI producers and capacities in China (kta, as of 2007.4.26)

なお、バイエル・マテリアルサイエンスは上海ケミカルパークで、新製法を採用して300千トンのTDIを建設すると発表している。2009年完成を目指す。
　　http://www.knak.jp/big/bayer.htm#tdi-tech
　　http://www.knak.jp/big/bayer.htm#tdi-china-gasphase　　

このほか、遼寧North Jinhua ポリウレタンが遼寧省 葫蘆島（Huludao）市で50千トンのTDIを建設中で、2008年末から2009年初めにスタートの予定。（ a jv between HuajinChem and CNGC）
また、上記の甘肅銀光TDIも2010年までに100千トンに増設する予定。

2007/4/25 UOP

UOP selected by China's SINOPEC for new aromtics project
　New Shanghai complex to bring 600 KMTA of new para-xylene capacity to China
　Para-xylene Demand in China is expected to grow at an annual rate of 14 percent over next 10 years

UOP LLC, a Honeywell company, announced today that Sinopec Shanghai Petrochemical Co., Ltd., a subsidiary of the China Petroleum and Chemical Corp., has selected UOP to supply technology, basic engineering services and equipment for an aromatics project to be installed at their Shanghai facility.
Engineering design is currently in progress with commissioning of the complex scheduled prior to the end of 2008.

　　　UOP Selected by PetroChina for Aromatics

2007年05月09日 asahi.com　　　　　　　　　　　詳細情報

中国製医薬品とペットフードから毒性物質　１００人死亡

　中国外務省などは８日、パナマ向けに輸出された薬用甘味料のグリセリンと、米国とカナダへ輸出されたペットフードにそれぞれ毒性物質が混入していたと発表した。６日付米ニューヨーク・タイムズ紙はパナマで１００人の死亡が確認されたと報道。同省の姜瑜副報道局長は８日の会見で「グリセリンの代わりに医薬品には使用できない化学薬品が使われた」と述べ、因果関係を認めた。

ジエチレングリコールはグリセリンと比べて格段に安価。江蘇省にある化学薬品会社がグリセリンに混ぜて製造し、スペインや中国の貿易会社を通じて輸出されたという。

　一方、中国の国家品質監督検査検疫総局は８日、江蘇省と山東省の２社が製造して北米に輸出されたペットフードからも、樹脂などに使われるメラミンが違法に添加されていたと発表した。

2007/5/14　Asia Chemical Weekly

PetroChina signs agreement for ethylene project in Shaanxi

On May 13, PetroChina signed an agreement with Shaanxi Government for a large-scale ethylene project in Yan'an (延安), Shaanxi Province陝西省.

To be located in Yan'an, the proposed ethylene project will cost around USD 2.6 billion and have capacity of 1 million tonne/year. The project will be operated by a jv between PetroChina and local government, in which PetroChina will own the major stakes; while the shares and the schedule as well as derivatives details of this project are not confirmed yet.

According to the two parties, this move is a part of strategic cooperation on the oil and petrochemical integration between PetroChina and Shaanxi Province.

In Shaanxi Province, PetroChina has an oilfield -Changqing (長慶) Oilfield nearing Yan'an, and a refinery - Changqing (長慶) Petrochemical Company located in Xianyang (咸陽).

Shaanxi local government owned the Yanchang (延長) Petroleum Group, which was founded in 2005 by some refineries and oilfields located in Shaanxi, it is the so called 4th largest petroleum company in China, following the PetroChina, Sinopec and CNOOC.

PetroChina Changqing Petrochemical processed 2.9 million tonne crude oil in 2006; in the same period, Shaanxi Yanchang Petroleum Group processed 9.7 million tonne crude oil.

So, The naphtha feedstock for this proposed ethylene project is expected to supply by the existing refineries of PetroChina and Yanchang Petroleum Group without building new refining facilities.

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The PetroChina's Shaanxi ethylene project has not been approved by government, it is also not included in the 11th 5year plan. But it should be included in the next 5 year plan.  The startup date for the project will be after 2010.  

Unlike the Dalian's project, which is jointly invested by a private company and a foreign firm, this project is jointly invested by the local government and state owned PetroChina.
So, that's no question for this project to get approval from government.
There are two reasons.
One is China government has planned to develop the economy in West China, including Shaanxi, to cut down the economic imbalance comparing the developed east coast areas;
another reason is PetroChina has the ambition to strengthen the petrochemical business to compete with Sinopec.

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2006/11/30 新華社

陝西・甘粛・寧夏、環状原油輸送ネット形成

中石油長慶油田公司によると、北は甘粛省慶陽市の西峰油田から、南は陝西咸陽長慶石化までの慶咸原油輸送パイプラインが２９日利用に移され、陝西、甘粛、寧夏に跨る環状原油輸送ネットの形成を示す。

　慶咸原油輸送パイプラインは、黄土高原と関中平原を結び、総延長が２６０キロで、パイプの直径が３７７ミリ、原油の年間輸送力が３００万トンで、総工費が７億４３００万元。甘粛、陝西省と中国石油股フン公司の重点建設工事とされ、長慶油田公司の、大油田を立ち上げ、陝西・甘粛・寧夏環状原油輸送ネットをつくる「マウスピース」だ。

　長慶油田公司は、陝西、甘粛、寧夏を結ぶ陝西靖辺−咸陽、陝西靖辺−寧夏恵安堡原油輸送パイプラインの建設を終えた。慶咸原油輸送パイプラインによって、隴東、安塞、靖安、靖綏など長慶油田公司の中堅油田の原油が、環状パイプラインを通じて、北の寧夏、西の蘭州、南の陝西までの柔軟な調達を実現、油田の生産輸送矛盾を和らげ、長慶石化の増改築および「西油東送」戦略の実施、周辺部の経済成長のけん引に重要な意義をもつ。

　慶咸原油輸送パイプラインはＳＣＡＤＡシステムを採用、設計、敷設と保全で全部ＧＰＳを採用、パイプラインの全自動リアルタイム監視、全体調達と最上運営を実現、長慶油田公司初めての真新しいデジタル化原油輸送パイプラインだ。

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2005-09-17 AP

China sets up new oil group to meet demands

Moving to meet soaring domestic demand, China has set up a new oil company licensed to handle exploration, development and refining, officials and reports said Friday.

State-owned Shaanxi Yanchang Petroleum Group Co. was formed by merging 21 exploration and development companies and three refineries, state media reports said. The reports said the company will be China's fourth-largest oil company.

An official at the Shaanxi provincial State-owned Assets Supervision Administration, the government agency in charge of state companies, confirmed that the company was launched recently.

With demand for crude oil soaring as China's economy roars ahead at a growth rate of more than 9 percent annually, China has stepped up efforts to locate and tap its domestic reserves.

Shaanxi Yanchang is a major provincial refiner that is being joined with upstream producers in an attempt to build a competitive new company.

Shaanxi is China's fourth largest oil producing province, with crude output reaching more than 90 million barrels in 2004.

China maintains state control of its strategically important oil and gas companies, with the other major producers ? China National Petroleum Corp., China Petrochemical Corp. and China National Offshore Oil Corp. ? accounting for almost all production.

However, in Shaanxi, a small private oil exploration and exploitation sector developed, aided by local officials eager to boost the impoverished regional economy.

Those private companies, outlawed by the central government, have been absorbed by Shaanxi Yanchang Petroleum, state media reports say.

The Shaanxi state assets administration official said the value of Shaanxi Yanchang's assets was still being evaluated.

According to a recent report in the Shaanxi Daily, Yanchang Petroleum Industry Group Corp., the flagship company of the new conglomerate, produced 13.5 million barrels of crude oil last year, excluding output by smaller companies in the first seven months of this year, up 25 percent from the same period a year earlier.

Its refinery output was 32.2 million barrels, up 20 percent year-on-year. Its sales surged 58 percent on-year during the same period to 15 billion yuan ($1.9 billion.)

JOGMEC 2005/10/13

中国：陝西省、地場の石油開発企業を統合し、第４の石油開発会社設立
http://oilresearch.jogmec.go.jp/enq/frame.php?lurl=/information/pdf/2005/0510_out_m_cn_shanxi.pdf

陝西省国有資産監督管理委員会は、陝西省政府所管の石油開発会社・製油所を統合し、延長石油集団を設立した。同集団傘下企業の石油生産量は三大石油公司につぐ規模。ただし、同公司の活動範囲は陝西省内に限られる。

中国第４の石油開発会社誕生
2005年10月14日、陝西省国有資産管理・監督委員会は、陝西省北部地域における石油資源の統合を推進するため、石油探鉱開発企業２１社（陝西省の所管する延長油鉱管理局所属の石油開発会社７社、陝西省北部各区・県の所管する石油開発会社１４社）ならびに製油所３社（延煉集団、永坪精油所、楡林製油所）を統合し、全額出資企業「陝西延長石油（集団）有限責任公司（以下、延長石油集団）」を設立した。また、同公司は傘下に延長油田股?（株式）有限公司（以下、延長油田株式会社）を設立した。今後、傘下の石油探鉱開発企業および製油所は延長油田株式会社が統一管理する。

中国における原油生産シェア（2004年）

PetroChina 　59% Sinopec 　22% CNOOC 　 9% 延長　　 　 4% 外資ほか　 　 6%

延長石油集団傘下の石油開発企業の原油生産量は合計720万トン（14.4万バレル／日）であり、中国全体の原油生産量の4％にすぎないが、今回の統合により、三大国有石油企業につぐ、第４の石油開発会社が誕生したと言える。ただし、延長石油集団の活動範囲はあくまで陝西省に限られ、今後、他省あるいは国外において、石油の探鉱開発や精製事業を行うなどの事業規模拡大を行う可能性は極めて少ない。

陝西省は第４位の産油地帯
中国の油ガス田開発は、三大国有石油企業の寡占状態にあるが、陝西省は中国で最も古い産油地帯であり、中華人民共和国設立前から石油の生産が行われていた。地方政府が所管する「延長油田」とPetroChinaが所管する「長慶油田」をはじめ、小規模油田が散在している。延長油田は、陝西省北東部部（延安市東方約50Km）に位置しており、延長（Yanchang）油田の他、小規模油田群の総称である。「長慶油田」は、オルドス盆地中・西部に位置しており、陝西省だけではなく、甘粛省、寧夏回族自治区に位置している。馬嶺（Maling）油田の他、小規模油田群の総称である。長慶油田と延長油田の生産量のうち、陝西省の生産分は1308万トンであり、同省は、黒龍江省（大慶）、山東省（勝利）、新疆につぐ第４位の産油地帯である。

2004年　石油生産量 （単位：万トン）

長慶 　　　811 延長 　　　653 陝西省計 　　1,464 　 　 大慶 　　4,640 勝利 　　2,674 中国計 　17,473

May 24, 2007 XFN-ASIA

Saudi Aramco, Sinopec to conclude Qingdao refinery JV deal soon

Saudi Aramco will soon conclude an agreement with China Petroleum & Chemical Corp (Sinopec) to set up a refinery joint venture in Qingdao in eastern China's Shandong province, a Saudi Aramco official said.

Earlier, Du Guosheng, assistant to the president of Sinopec Group, told state media that Sinopec, the country's largest refiner, is expected to sell a 25 pct stake in its Qingdao refinery to Saudi Aramco.

It has annual crude processing capacity of 10 mln tons with the potential to generate revenue of over 30 bln yuan.

In April, Sinopec Group and Saudi Aramco signed a memorandum of understanding under which the Saudi company committed to supply Sinopec and its affiliates 1 mln barrels per day of crude oil by 2010.

---

August 02, 2007 Reuters

Sinopec delays Saudi venture

Beijing: Sinopec Group will delay the startup of a $1.2 billion refinery in east China by at least nine months, adding uncertainties to a joint-venture and oil supply deal with Saudi Arabia, industry sources told Reuters.

Sinopec, parent of Asia's top refiner Sinopec Corp, aimed to start the 200,000 barrels per day (bpd) refinery in the coastal city of Qingdao around September 2008 or later, they said, versus the firm's original target of the end of this year.


One reason for the delay, the source said, was that Sinopec's new chairman, Su Shulin, wants to ensure the project meets tighter environmental standards as it is situated near the sailing site for the Olympics next August.

A second source, who put the delay to end-2008, linked the move to the sudden resignation in June of former chairman Chen Tonghai, an industry veteran Chinese media said was under investigation for alleged graft.

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2006/11/27 XFN-ASIA

FOCUS - Sinopec-Saudi refinery deal to boost Aramco foothold in China

China Petroleum & Chemical Corp (Sinopec) is expected to sell a 25 pct stake in an east China refinery to Saudi Aramco in a deal that analysts said will give the Saudi company a major boost in China's fast growing market.
They also said the tie-up with Aramco at a refinery under construction in Qingdao will allow Sinopec to limit some supply-side risks posed by the OPEC production quota.

Platts 2007/5/29

China's Datong to build 600 kt/yr methanol plant by 2010/2011

China's Datong Coal Mine Group has begun preparations to build a 600,000 mt/year methanol plant in Datong, Shanxi Province 山西省大同市, a source close to the project said last week.
Construction would take three to four year, the source said. The project has been approved by the National Development and Reform Commission.

---

Datong Coal Mine Group Co., Ltd, formally known as Datong Coal Mining Administration, was established in 1949. In July 2000, Datong Coal Mining Administration was reconstructed as Datong Coal Mine Group Co., Ltd.

In December 2003, Shanxi Province Government reconstructed all the enterprises dealing with coal production and coal transportation in the north of Shanxi Province into a new Datong Coal Mine Group Co., Ltd. This forms an extra large enterprise across Datong, Shuozhou 朔州 and Xinzhou 忻州 city. The number of employees is 200,000. The annual production and transportation of coal in 2005 was about 100.27 million metric tons. Our group is striving to catch every chance to enhance the development and to build a new coal group in power coal-chemical resource and diversified industries in order to improve the international competitiveness. The strategically goal of Datong Coal Mine Group Co., Ltd. is to produce and transport above 150 million metric tons of coal, generate electricity of 3,000MW, and produce 1.2 million metric tons of aluminum oxide, and 600,000 metric tons of methanol. If you are interested in any of our products, please feel free to contact us for more information. We are looking forward to forming business relations with customers from all over the world.

2007/6/5 Asia Chemical Weekly 　　　　背景

Dragon paused PX project construction in Xiamen

Dragon Aromatics has paused construction work for its paraxylene (PX) project in Haicang, Xiamen, Fujian Province, due to the environmental and safety concerns.

The project will suspend construction at least half a year, and will not resume until the Regional Environmental Assessment of Haicang district is completed. It is possible that Dragon Aromatics has to relocate or shelve this project.

In Mar. 2007, during the annual session of the Chinese People's Political Consultative Conference (CPPCC), over 100 political advisors have requested that the PX project should be relocated for the environmental reasons, and avoid the similar case taking place again like the explosion of PetroChina Jilin Petrochemical Company in Nov. 2005.

Later, Dragon announced that the PX project has been underwent strict approval procedures, it cannot be compared with Jilin Petrochemical's aniline plant which caused pollution at the Songhua River. Also, the company will invest USD 203 million in safety and environmental protection equipment for this project.

In late May, the Xiamen city government has decided pause the construction of PX project for the sake of public pressure from the local residents and media. It said that the project will suspend construction at least half a year until the Regional Environmental Assessment is completed. According to the explanation from government, the Project Environmental Assessment must be under the frame of Regional Environmental Assessment.

In June 2006, Dragon aromatics got the final approval for the project; In Nov. 2006, the company invested USD 1.35 billion to build 800 000 tonne/year PX, 160 000 tonne/year OX, 228 000 tonne/year Benzene and other facilities which include thermoelectricity station, Jetty, and Storage Tanks.

Earlier, the project was expected to start up in early 2009, while it will delay at least half a year and even, has the possibility to be relocated or shelved.

There is not any specific safety problem with the under construction project yet, but the worry-about of the potential risks.

The potential risks are not come from the company, but the PX itself.
Xiamen was seemed as a beautiful small island and positioned as a good place for travel and leisure. PX is described as a toxic chemical product and the project is nearing the resident area. So, residents in Xiamen protested against it on environmental and health concerns, and required the Dragon Group to move the project 100km away from residential areas.

In China, the performance of local governments is measured according to their gross domestic product (GDP) contribution and this often create conflicts in the safety of residents and protecting the environment. Besides the Songhua River polluted by Jilin Petrochemical, recently, the Tai Lake is polluted by blue-green alga and impacted the clean water supply to Wuxi City, Jiangsu Province. So the environment issue is focused much more than past.

---

CPPCC 中国人民政治協商会議 is national conference which is held in Beijing in March each year; at the same time and the same place, another national conference ¨C National People's Congress (NPC) also is held.
The two conferences are the top and most important political events in China. For more details please see:
http://www.cppcc.gov.cn/English/brf_intro/
http://www.npc.gov.cn/zgrdw/english/home/index.jsp

The campaign leader of PX project protest is Ms. Zhao Yufen, who is one of the over 100 political advisors of CPPCC, is an academician of Chinese Academy of Sciences, who is also a chemical professor of Xiamen University. As a CPPCC advisor representing Xiamen, Ms. Zhao discussed about the specific project.

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Xianglu invests USD 0.5 billion (RMB 4 billion) for the second PTA project, capacity of which is 1.5 million tonne/year.

So far, the under construction Xianglu PTA project is not impacted by this issue.
Perhaps reasons:
1 They are two independent firms in law.
2 Xianglu has an existing PTA plant, the under construction project seemed as an expansion project.
Xianglu seems will go ahead with the PTA project no matter what the PX project happened.

2007/6/6 SES

SES and Golden Concord Sign Joint Venture Contract to Build Coal Gasification, Methanol and DME Plant in Inner Mongolia, China
　　Plant to optimize coal reserves to meet China's growing need for clean transportation fuels and chemical feedstocks

Synthesis Energy Systems Investments, Inc, a subsidiary of Synthesis Energy Systems, Inc. (“SES” or the “Company”) , a coal gasification company involved in the conversion of low cost fuels into clean energy and chemical products, and Inner Mongolia Golden Concord (Xilinhot) Energy Co., Ltd., a subsidiary of Golden Concord Holdings Ltd. (“Golden Concord”), a private provider of electricity, steam and chilling water in China, have signed a co-operative joint venture contract to build an integrated coal gasification plant and methanol and Dimethyl Ether (“DME”) production plant (the “Plant”). Located in the Inner Mongolia Autonomous Region of China, the Plant will optimize low value, abundant lignites from coal mines to meet the region's growing need for clean, affordable non-petroleum-based fuels and petrochemical feedstocks.

Tim Vail, President and Chief Executive Officer of SES, said, “Working together, SES and Golden Concord are demonstrating their commitment to develop cleaner, high-quality fuels, at a lower cost based on the utilization of the U-GASR technology to gasify low quality, high-ash coals to supply China's growing appetite for clean fuels and petrochemicals that fuel economic development.

SES and Golden Concord will own 51% and 49% respectively of the joint venture named SES-GCL (Inner Mongolia) Coal Chemical Company Ltd. (the “JV Company”), based at the Lignite Coal Chemical Industrial Base of Xilinguole 錫林郭勒 Economic and Technology Development Zone in the Inner Mongolia Autonomous Region.

About Synthesis Energy Systems
Synthesis Energy Systems, Inc. is an energy and technology company that deploys proprietary systems and technology to gasify low value fuels to replace high cost energy and chemical products sold to major global markets. The U-GASR technology, which the Company licenses from the Gas Technology Institute, is designed to turn waste coal products into high value synthesis gas for use in power and chemical applications. The technology performs this gasification without many of the harmful emissions normally associated with coal fired energy production. SES currently has offices in Houston, Texas, Shanghai and Beijing, China. For more information on SES, visit www.synthesisenergy.com or call (713) 579-0600.

2007/6/11 Asia Chemical Weekly 　　　　　　　　　　　　PetroChina to start building Daqing ethylene plant next week

Daqing gets nod for 1.2 million tpa ethylene expansion project 大慶石化

Daqing Petrochemical Company (Daqing Petrohem), a subsidiary of PetroChina, has got the final nod from National Development and Reform Commission (NDRC) for its ethylene expansion project in Daqing, Heilongjiang province.

The company will expand the ethylene capacity to 1.2 million from the existing 600,000 by building a second 600,000 tonne/year naphtha cracker. Originally, Daqing Petrochem planned to debottleneck the exiting 600,000 ton naphtha cracker to 800,000 ton; while the company revised the plan.

The proposed derivatives include PE, PP and BTX with unknown detailed capacities. Naphtha feedstock will be self supplied. With two subsidiaries, PetroChina has combined refining capacity of 12 million ton per year in Daqing. Daqing Petrochem has refining capacity of 6.5 million tonne/year while Daqing Refining and Chemical Company, another subsidiary of PetroChina, has refining capacity of 5.5 million tonne/year.

According to NDRC, the project will be a part of the government plan to revive China's northeastern industrial base and contribute to the development of Daqing City. Also, the local government aims the project will increase the value-added petrochemical output, and reduce the effects on the local economy of declining oil output.

The Daqing field is the largest base of crude oil output in China, but the output has declined in recent years.

The schedule of this project is not disclosed. The local government of Daqing once said it will be completed by 2010, while this project is not mentioned in the guideline of ethylene industry development in next 5 years, which was released in Q1 2006.

An economic advisor at PetroChina, Liu Jie, said that his company planned to raise its ethylene capacity from 2.63m tonnes in 2006 to 7m tonnes in 2010.

It will build six ethylene projects in Daqing, Jilin, Fushun in the northeast, Lanzhou, Dushanzi in the northwest and Sichuan in the southwest, by 2010, Liu said. 　Source: Shanghai Daily

現在判明しているPetroChinaの能力及び計画は以下の通り。
Jilin、Lanzhou の計画は不明だが、これらに合計1090千トンの増強を計画していると思われる。

	current	future
Daqing	600	1,200
Jilin	850	850
Fushun	150	950
Liaoyang	120	200
Lanzhou	690	690
Dushanzi	220	1,220
Sichuan	0	800
Total	2,630	5,910
article	2,630	7,000
difference	0	1,090

The project is part of the company's petrochemical development plan aimed at offsetting the effects on the local economy of declining oil output. The Daqing field was first tapped in 1960 and accounted for around one-third of the country's oil production in 2002, but output has declined steadily in recent years. PetroChina said earlier that the field produced 43.4 mln tons of crude oil in 2006, slightly lower than the 44.95 mln produced in 2005. Source: AFX News Ltd

　

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2007/12/19　Platts

PetroChina to start building Daqing ethylene plant next week

PetroChina subsidiary Daqing Petrochemical plans to start construction on a 600,000 mt/year ethylene plant next week, at Daqing in Heilongjiang province, northeast China, the official Xinhua news agency said Wednesday.

When on stream, the plant will double Daqing's ethylene production capacity to 1.2 million mt/year, making it the country's largest ethylene production base. Previous press reports indicated that the plant was expected to be operational around 2011.

PetroChina said earlier, prior to an initial public offering on the Shanghai Stock Exchange, that it would use Yuan 6 billion ($810.8 million) towards the Daqing ethylene project.

Last month PetroChina raised Yuan 66.8 billion through the IPO.

日本経済新聞　2007/6/12

バイオ燃料/ 石炭液化　中国、導入計画見直し　食糧などへの影響回避

　中国政府はエタノール生産や石炭液化など新エネルギーの導入計画を見直す。エタノールの原料となる食糧や飼料が値上がりし、豚肉価格にも波及し始めたため。石炭液化もそのまま燃料にする方が資源の有効利用になると判断した。今後、食糧を原料とするエタノール生産は認可を停止、石炭液化は審査を厳しくする。

　中国ではすでに吉林燃料エタノール(吉林省)など４社がトウモロコシなどを原料にエタノールを生産Lており、年産能力は合計１１０万トン。政府は今後、これ以外の新しい設備を認可しない。すでに稼働している４社の設備についても、食糧や飼料にならない植物原料へ転換させる考え。

　石炭液化は石炭から石油を生産するが、結果的に活用できるエネルギーの量は減り、工程で大量の水も使う。そのため、政府は「多くのエネルギ一で少ないエネルギーを生産する技術」と否定的な見方に転じている。大規模な生産能力を持つ政府のモデル事業は続けるが、小規模な設備は認可しない方針だ。

2007-06-11 www.chinaview.cn

China mulls banning food in ethanol fuel production

China may entirely switch to non-food materials such as cassavaトウダイグサ科の低木, sweet potato, sorgo サトウモロコシand cellulose in producing ethanol fuel as a substitute for petroleum, said a government official.

The country would approve no projects designed to produce ethanol fuel with food from now on, an official of the National Development and Reform Commission (NDRC) told a seminar on China's fuel ethanol development held in Beijing on Saturday.

"Food-based ethanol fuel will not be the direction for China," said Xu Dingming, vice director of the Office of the National Energy Leading Group, who was also at the seminar.

China has been trying to avoid occupation of arable land, consumption of large amount of grain and damages to the environment in developing the renewable energies.

The current four enterprises engaged in producing corn-based ethanol would be asked to switch to non-food materials gradually, according to the NDRC official who declined to be named.

The four enterprises in Jilin, Heilongjiang, Henan and Anhui have a combined production capacity of 1.02 million tons of corn-based ethanol per year.

The country has become a big producer and consumer of ethanol fuel in the world after the United States, Brazil and European Union, according to the NDRC official.

China Oil and Food Corporation (COFCO), the country's largest oil and food importer and exporter, would focus on sorgo in the production of non-food-based ethanol fuel, said Yu Xubo, president of COFCO at the seminar.

COFCO, which owns the Heilongjiang enterprise and has a twenty-percent stake in the Anhui enterprise, aims to produce five million tons of ethanol fuel based on sorgo in the near future.

COFCO is leading the way in developing cellulosic ethanol fuel under a cooperation agreement with Denmark-based Novozymes, which leads the world in researches into the key enzymes needed in large-scale production of cellulosic ethanol.

The current cost for producing ethanol fuel from stalks of corn, which are discarded by farmers, is still too high.

Novozymes is working on the commercialization of cellulosic ethanol both in the United States and China.

"We are optimistic about China's prospect of making it work ahead of the U.S., as the cost of collecting the stalks of corn are much cheaper in China," said Steen Riisgaard, president and CEO of Novozymes.

There is much opposition both in China and in the world to corn-based ethanol fuel, which is believed will lead to higher corn price.

2007-06-10 www.chinaview.cn

China may halt production of liquefied coal

China, which is rich in coal but poor in petroleum and gas, may put an end to projects which are designed to produce petroleum by liquefying coal, an official with the country's top economic planning agency has said.

The consideration came after evaluation of the nation's limited energy resources and its econological environment, a deputy director of the industry department of the National Development and Reform Commission (NDRC) told a seminar on China's fuel ethanol development, held in Beijing on Saturday.

"Liquefied coal projects consume a lot of energy, though the successful industrialization of liquefied coal could help reduce the country's dependence on petroleum," said the official who declined to be named.

The Chinese government said earlier it would invest more in developing alternative energy resources including biomass fuel and liquefied coal to substitute petroleum during the 11th Five-Year Program (2006-2010) period, amid concerns over the country's growing dependence on petroleum.

China, the world's second-largest energy consumer, imported 162.87 million tons of oil in 2006, driving the country's reliance on imported oil up 4.1 percentage points from a year earlier to reach 47 percent, official statistics show.

The country is also confronted with huge capital demand and higher consumption of water and coal in producing the liquefied coal, the official said.

A project in north China's Inner Mongolia Autonomous Region with a designed capacity of 1.08 million tons would need more than 50 billion yuan (6.58 billion U.S. dollars) of investment, according to him.

He said the country had begun the coal-liquefying projects without trial industrialization operation, and the technologies involved were not sophisticated yet.

And both coal and petroleum are irreproducible energy resources, he said.

However, the country has never slackened its efforts to find substitutes for petroleum.

China said on Tuesday it has successfully excavated combustible ice--a kind of natural gas hydrate--from below the floor of the South China Sea after nine years of research in this field.

The Chinese government said recently it upheld the development of renewable resources as an important national strategy, and would continue to boost the development of hydro power, solar power, wind power, biomass fuel and methane.

The current seminar was hosted by Chinese Academy of Engineering with sponsorship from Denmark-based Novozymes, the world's leader in enzymes and microorganisms. Discussions focus on the industrialization of China's fuel ethanol.

Novozymes ﾃﾞﾝﾏｰｸの酵素メーカー

With more than 100 types of enzymes and microorganisms and not less than 700 different products Novozymes has the largest product portfolio in the world.
In more than 40 different industries and 130 countries, our biological solutions improve industrial performance and quality while at the same time saving on water, energy, raw materials and waste. Novozymes is quoted on the Copenhagen Stock Exchange.  

ノボザイムズの歩み

2007/06/08

大慶石油化工が中国天化工集団と改称

大慶石油化工によると、同社は現在の社名「大慶石油化工集団有限公司」（Daqing Petroleum and Chemical Group Ltd.)を「中国天化工集団有限公司」（China Zenith Chemical Group Ltd.）に変更する計画。同計画は６月２８日に開催予定の臨時株主総会での株主の承認を待って実施される予定。

同社は本年1月22日に、石油製品（潤滑油、さび止め塗料など）の子会社、Earlsmead をVirgin Islands のStarhigh Group Limited に　350香港ドルで売却すると発表している。主力事業の化学製品、バイオ、電力事業を反映した社名にする方針。

2007-6-29 China Chemical Reporter

China Seed Merges into Sinochem

    Following the approval by State-owned Assets Supervision and Administration, China National Seed Group Corporation (China Seed) has been merged into Sinochem Corporation, and become a wholly-owned subsidiary of Sinochem.
    China Seed is a leading seed company in China, focusing on the research, development, production, sales and trade of seeds and agricultural products, a regular member of ISF and APSA. Headquartered in Beijing, it has six wholly-owned subsidiaries, ten participation companies, three joint ventures with foreign participants and twelve seeds breeding sites. Up to now, China Seed has established business relationship with over 100 seed companies from over 40 countries and regions in the world.
    The move will strengthen Sinochem's competitive edge in seeds business and agriculture services.
    China Seed will strengthen its presence in China and worldwide, by Sinochem's products brands and market networks.

June 29. 2007 INTERFAX-CHINA

SK Corp. confirms plan to build petrochemical plant with Sinopec in central China

A senior official with SK Corp., South Korea's largest refiner and Asia's fourth largest, confirmed media speculation yesterday that the company has signed a deal with Sinopec to build a petrochemical plant in the central Chinese city of Wuhan, marking its further foray into China's downstream oil sector.

"SK Corp. is also interested in setting up joint-venture refineries with China's big oil companies in order to better source raw materials for the Wuhan plant and to secure oil products for its gas stations," the vice president of SK Corp.'s petroleum business, Seok Chan Jang, said yesterday on the sidelines of a petroleum wholesaling and retailing industry summit.

According to Jang, SK Corp. currently owns around 10 gas stations in the city of Shenyang in China's northeastern Liaoning Province. The company also has a refining capacity of 1.12 million barrels per day, which accounts for 11 percent of Asia's total.

SK Corp. aims to double its profits by 2010 through overseas projects, with China, the world's second largest energy consumer, its main target, Jang said.

Jang believes that South Korea and China should cooperate over joint purchases and shipments of naphtha and LPG, as well as the expansion of mogas exports, in order to secure better pricing deals. He also said that heavy and light oil product prices may plunge by as much as 50 percent between 2012 and 2013 due to the large scale expansion of production capacity that will occur across Asia between 2008 and 2012.

South Korea is Asia's major importer of crude oil and naphtha from the Middle East, with around 82 percent of all its crude sourced from the oil-producing hub. China's naphtha imports are expected to rise rapidly in the future as its expanding petrochemical plants push up demand. China and Korea are also both large liquefied petroleum gas (LPG) importers and mogas exporters.


While bio-fuel will be SK Corp.'s next focus, it has not yet entered into talks with any potential Chinese partners. According to Jang, the company's search for attractive projects "is starting now".

The South Korean company is also looking to buy stakes in two or three Chinese government-run coalmines, including the country's second largest coal producer Datong Coalmine Group, and in coal-based power and deep processing projects.

「人民網日本語版」2007年7月3日

日独企業、中国で遺伝子組み換え食品を販売

  国際環境保護団体グリーンピースの食品農業担当者はこのほど「中国の消費者は差別待遇を受けるべきではない。グリコとメトロの両社はただちにダブルスタンダードを改め、遺伝子組み換え原料の中国での使用を停止すべきだ」と述べた。「中国青年報」が伝えた。

  グリーンピース北京事務所はこのほど、グリコ・メトロ両社のスナック菓子5種類に遺伝子組み換え成分が含まれていたとの検査結果を公表した。遺伝子組み換え成分が検出されたのは、日系企業の上海江崎グリコの「菜園小餅（トマト味）」など4商品と、小売業世界第3位のドイツ・メトログループの自社ブランド商品「AKAビスケット（チョコレート味）」。グリコは昨年日本で、遺伝子組み換え原料は使用しないと発表。メトログループもドイツで同様の発表をしている。

  「われわれは検査結果をただちに両社に通知したが、その対応は冷ややかなもので、遺伝子組み換え成分が検出されたことへの何の説明もなかった」――グリーンピースの担当者は失望した様子で話す。同団体は北京、広州、上海で販売されているスナック菓子21品目を対象に、独立第三者機関である香港基因晶片開発公司に検査を委託した。

June 18, 2007 China CSR

Greenpeace: Supermarkets Adopt Double Standard In China

Japanese food producer Glico and German retail chain Metro were found to be selling genetically engineered food products in China, according to a test by Greenpeace.

The environmental group has criticized the two companies for having a double-standard policy, and demanded them to adopt a non-GE policy in China. Twenty-one food samples were collected from Beijing, Guangzhou and Shanghai by Greenpeace in April and May. Greenpeace says they were tested by Hong Kong DNA Chips, an independent laboratory. The results showed the presence of GE ingredients in four Glico snack food products and one Metro's own brand biscuit product. Both companies say they adopt a non-GE policy in their own countries.

"Like Japanese and German consumers, Chinese consumers do not want GE food. Glico and Metro should stop having double standards and apply their non-GE policy to China as well,” said Greenpeace campaigner Lorena Luo.

Kraft Foods, the world's second largest food producer, has adopted a non-GE policy in mainland China after its products were found to contain GE ingredients last year.

"Kraft Foods has chosen to go with the demand of Chinese consumers. We demand other food companies to follow Kraft's example," said Luo.

According to Greenpeace, a recent consumer survey conducted by IPSOS shows that Chinese consumers are uneasy about GE food. A total of 65% of the respondents in Beijing, Shanghai and Guangzhou show a clear preference for non-GE food while 97% deem it necessary to have a mandatory labeling system. However, most processed food products are not required to label their GE ingredients under the current Chinese regulations.

Greenpeace is also calling on the Chinese government to improve its labeling regulation to protect consumers' right to informed choices when shopping.

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Metro is Germany's largest retail group, formed in 1996 out of the merger of three separate companies - Metro Cash & Carry, Kaufhof Holding and Asko Deutsche Kaufhaus. It is the country's biggest grocer and electronics retailer, and operates around 2,440 wholesale warehouses, hypermarkets and department stores in 30 countries.

 「人民網日本語版」2007年7月3日

米国、中国製鋼管に反ダンピング調査を発動

  商務部の王新培報道官はこのほど談話を発表し、米商務省が6月28日に、中国製の環状溶接炭素鋼管に対し、アンチダンピング・相殺関税調査を発動したことについて、強い不満と反対を表明した。王報道官は次のように述べた。

  中国側は、米側が中国の市場経済地位（MES）を認めないままに、相殺関税調査を発動し、相殺関税措置を取ることは、米国自身の判例に違反するうえ、すでに20年以上堅持してきた、いわゆる「非市場経済国」には相殺関税を適用しないとの慣例にも違反することを、重ねて言明してきた。さらに、米国によるアンチダンピング・相殺関税調査の同時発動は、重複救済の問題を不可避とし、WTO規則に違反するものだ。

相殺関税とは、補助金付き貨物の輸入による損害を防ぐため、ＷＴＯ協定上の権利として、補助金相当額を相殺する目的で課する割増関税。

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日本経済新聞　2007/7/4

中国製品に相殺関税を、米産業界で要求相次ぐ

米国で中国からの輸入品に関して、中国政府の補助を支えに不当に安くなっているとして相殺関税を求める声が相次いでいる。

米政府が5月末に紙製品でダンピング（不当廉売）の仮決定をしたのが呼び水となり、それ以降、鉄鋼とタイヤの業界も発動を促した。対中強硬論に傾く議会も後押ししている。

まず米鋼管メーカーと労働組合が共同で中国製の鋼管について、相殺関税をかけるよう求める嘆願書を米国際貿易委員会（ＩＴＣ）に出した。中国製のオフロード用のタイヤについても関連業者が同様の申請をした。国内の雇用縮小や工場の閉鎖につながったなどと主張。ＩＴＣは政府から独立した機関として安値の実態や米産業界への打撃の有無を調べる。

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FujiSankei Business i. 2007/4/3

「米中貿易戦争」の懸念も　相殺関税適用仮決定　強まる米議会の圧力

■ドル売り加速、中国側は「強烈な不満」

　米商務省による中国への相殺関税適用の仮決定が「米中貿易戦争」に発展する懸念が強まっている。膨張が止まらない対中貿易赤字や手詰まり感のある人民元問題など、米経済界にくすぶる不満を、対中強硬派で知られるペロシ下院議長（民主党）が議会で政治問題化。共和党のブッシュ政権に対する圧力を強めた形だ。これを受けて、米中関係悪化への懸念から外為市場ではドル売りが加速するなど、先行き不透明感がじわりと広がっている。

　≪公正な企業競争≫
　米商務省は、中国が紙製品の対米輸出に対して10.90〜20.35％の補助金を拠出していると認定し、これに相当する相殺関税を適用する仮決定を決めた。６月１３日の同省の本決定と、７月３０日の米国際貿易委員会（ＩＴＣ）の決定で判断が覆らなければ発動される。

　米国は中国など非市場経済国に相殺関税を適用しない方針を２３年ぶりに転換した。この問題は米メーカーが昨年１０月に中国への相殺関税を求めて提訴していた。ただ、仮決定に関しグティエレス商務長官は、「米企業との公正な競争を確保するためで仮決定は中国との関係を後退させるものではない」と強調した。

　２００６年の米国の対中貿易赤字は、前年比１６％増の２３２５億ドルと過去最高を更新。議会では中国など非市場経済国に対する相殺関税の非適用措置を廃止する法案に加え、市場への介入によって対ドルで安く維持されている人民元を、中国政府による輸出補助金と認定して相殺関税を課す法案も提出されている。

　≪方針転換を警戒≫
　これに対し、中国商務省は２日までに、米側に対し、「対話によって矛盾を解決するという両国指導者の共通認識に反する措置」として、「強烈な不満」を表明した。

　米中は昨年１２月、北京で戦略経済対話をスタートさせ、今年５月にはワシントンで第２回の米中対話に向け準備作業に入っている。戦略対話は胡錦濤・国家主席とブッシュ大統領が経済通商問題を対話で解決するために構築した枠組み。それだけに中国は、議会の圧力が背景にある今回の措置に懸念を抱いている。

　中国側は「非市場経済国には相殺関税を適用しない従来の方針を米国が転換した」と指摘している。議会からの圧力を背景に米側が紙製品に限らず、今後も相殺関税を中国製品に対し相次ぎ適用してくる恐れがあると見て警戒を強めている。

　今回の米商務省の仮決定に対し、全米製造業者協会（ＮＡＭ）は「公平な競争が始まる」（エングラー理事長）などと歓迎している。紙製品に加えて鉄鋼や繊維など、中国との競争にさらされている業界から相殺関税の提訴が相次ぐことも予想される。２００８年に大統領選挙を控える米国では「米中貿易戦争」への対応が選挙戦のテーマのひとつになりそうだ。

　グティエレス商務長官は、今回の仮決定が「ケース・バイ・ケースでの対応」として、保護貿易政策ではないと強調した。だが中国の“報復”は避けられない見通しで、昨年１兆ドルを超えた外貨準備高の７割を占める米ドル資産を、中国が大量売却する恐れもある。

　そうなればドル相場の下落や米国債の金利上昇による財政負担の増大など、ブーメラン的に米経済がダメージを受ける懸念もある。金融市場ではドルが売られて円高が加速。米株式も一時下落するなど米中貿易摩擦への関心が高まっている

 「人民網日本語版」2007年7月3日

中国でのCFC生産、すべて停止に

  常熟三愛富フッ素化工有限公司などCFC生産企業6社と国家環境保護総局は7月1日に生産中止の契約を結び、中国でのCFC生産が全面的に停止されることとなった。これにより、中国は「オゾン層を破壊する物質に関するモントリオール議定書」で規定された目標を2年半繰り上げて完了した。

  発展途上国の中で、オゾン層を破壊する物質を最も多く生産・消費する中国では、今年7月までに約10万トンのCFCの生産と消費、約8万トンのハロンの生産と消費を削減しており、これらが削減総量の約90％を占めている。

  CFCとはクロロフルオロカーボンの略称で、オゾン層を破壊する物質の一つ。

2007/7/9 Asia Chemical Weekly

GPRO Beifang starts construction for PVC integration project

On Jun. 28, 2007, Jiangsu GPRO Beifang Chlor-Alkali corporation (GPRO Beifang 金浦北方) held a ceremony for its construction start of new PVC integration project in Xuzhou, Jiangsu Province.

With total investment around USD 400 million (RMB 3 billion), the project will build in two stages. In the first stage, based on its existing technology and utilities, GPRO Beifang invests USD 200 million to build a 200,000 tonne/year caustic soda and a 200,000 tonne/year PVC facility, which is started in Jun 2007 and expected to be completed by H2 of 2008.
The company also announced to build ECH and Chloroacetic acid facilities while the details were not disclosed.

In the second stage, the company will invest USD 200 million to build another 200,000 tonne/year caustic soda and 200,000 tonne/year PVC facility.

Located in Xuzhou, Jiangsu Province, GPRO Beifang was originally Jiangsu Beifang Chlor-Alkali Company, which was acquired in Q1 2007 by Nanjing based privated company GPRO and then renamed to the current name. By using the carbide route, GPRO Beifang has existing 100,000 tonne/year caustic soda and 100,000 tonne/year PVC capacities.

In 2006, China produced 8.24 million tonne PVC, imported 1.15 millon tonne and exported 0.46 tonne million tonne PVC in the same year. The carbide route output accounted for 73% of China's total PVC output in 2006.

China Chemical Reporter 2997/2/26

Jiangsu GPRO completes acquisition of Beifang Chlor-Alkali

On February 3rd, 2007, Jiangsu GPRO Group announced the completion of the acquisition of Jiangsu Beifang Chlor-Alkali Co., Ltd. Beifang Chlor-Alkali is renamed Jiangsu GPRO Beifang Chlor-Alkali Co., Ltd.

Located in Xuzhou, Jiangsu province, eastern China, Beifang Chlor-Alkali is engaged in the production, sales, research and development of chlor-alkali chemical business. Merging into Jiangsu GPRO is in line with Beifang Chlor-Alkali's strategy to form completed products chains and to increase its production.

江蘇金浦集團は江蘇省南京市に本拠を置く化学会社で、従業員3,000人。プロピレンオキサイド、ポリエーテル、PP、ガソリン添加剤、潤滑油、酸化チタン等々を生産している。
同社は2005年に同社40%/Sinopec揚子石化 60%のJV、揚子石化金浦橡膠（YPC-GPRO Rubber）を設立し、南京ケミカルパークにSBR プラントを建設中（第１期 100千トン、計画では第2期として＋100千トン）
また、2006年11月には、韓国の錦湖石化との50/50合弁会社、「南京GPRO錦湖石化」が塩素法PO100千トン、PPG 50千トン、苛性ソーダ 100千トンのプラントの建設を開始している。