Shanghai Secco Petrochemical, a 50-30-20 joint venture between BP, Sinopec, and Shanghai Petrochemical, has broken ground on a $2.7-billion petrochemical complex at Caojing, China. The complex is due onstream in 2005, and it will include China’s largest ethylene plant with a capacity of 900,000 m.t./year.
Chemical Week Apr 24, 2002
Lummus Reconfirms China Cracker Award from BP
ABB Lummus Global has officially confirmed that it has been awarded a contract to build a 900,000-m.t./year ethylene plant for Shanghai Secco Petrochemical, a joint venture between BP and Sinopec at Caojing, near Shanghai. The contract covers a small portion of the olefins project, which has a total value of $350 million. The plant will also produce 590,000 m.t./year of propylene. Completion is scheduled for the first half of 2005. Lummus is also supplying technology.
SHANGHAI ETHYLENE CRACKER AND DERIVATIVES COMPLEX, CHINA
In December 2001 BP, Sinopec and
Shanghai Petrochemical Coprporation (SPC) formed a joint venture
for the development of an ethylene cracker and derivatives
complex in Shanghai, China. SPC is one of the largest
petrochemical companies in China, as well as one of the biggest
producers of ethylene. The Shanghai Secco Petrochemical Company
Ltd (SECCO) will build the complex, expected to go into operation
in 2005. In March 2001 the two companies approved an agreement
for a joint feasilibity study.
Earlier, in October 1999, BP Amoco and Sinopec signed a framework
agreement under which the companies agreed to accelerate the
project and to attempt a joint feasibility study report, to
negotiate a joint-venture contract and to fulfil other commercial
agreements.
The mainland's demand for ethylene, along with its derivative
products, continues to grow well beyond the country's
manufacturing capability. In 1999, total petrochemical production
was estimated to be worth $67 billion. In 2000, Chinese demand
for ethylene exceeded seven million tonnes, but domestic
production remained at 4.6 million tonnes. In 2010, the demand
for ethylene is forecast to reach 12 million tonnes, which would
result in a serious supply shortage. This joint venture is
designed to satisfy those demands.
ETHYLENE CRACKER AND DERIVATIVES PLANT
The cost of the Caojing, Shanghai project is estimated to be $2.7
billion. In June 2000 the Chinese government's State Development
and Planning Commission approved the raising of capacity from
650,000t/yr to 900,000t/yr of naphtha-fed ethylene cracker. The
downstream plants are estimated to have a capacity of 600,000t/yr
polyethylene; 590,000t/yr propylene; 500,000t/yr aromatics;
500,000t/yr styrene; 300,000t/yr polystyrene; 260,000t/yr
acrylonitrile; 250,000t/yr polypropylene; and 150,000t/yr
butadiene. Total output is expected to be almost 2.3 million
tonnes per year.
Representatives of Shanghai Tian Yuan (Group) Corporation,
Shanghai Gaoqiao Petrochemical Corp, Shanghai Chemical Industry
Park Development Co Ltd, Paktank Asia Pacific Ltd and Sinopal (a
joint venture of Air Liquide and Praxair) have all signed letters
of intent to proceed with their development project. The
financial arrangements are expected to be completed early in
2002. SECCO will now be tendering for design and construction
contracts with the aim of breaking ground in the first half of
2002.
It has been announced that BP are investing $400m in Sinopec
ahead of the expansion. This comes after the October 2000
announcement that BP has taken a 2.2% equity stake in Sinopec.
SINOPEC
Established in February 2000, Sinopec is the largest
petrochemical company in China. Sinopec owns 28 petrochemical
companies and eight oil and natural gas companies and has
combined assets of $47 billion. The company represents 52% of
total Chinese ethylene production capacity, and is seventy-third
largest of the top 500 companies in the world.
2003-7-28 Asia Chemical weekly
ABB wins $123m of contracts for EB/SM, PS units in China
ABB announced Friday it has won
$123m (Euro110m) of petrochemical contracts from Shanghai
Secco Petrochemical Co for
its complex in Caojing, China.
The Swiss headquartered engineering group said in a statement
that it would provide the technology licence, engineering, and
procurement for a ethylbenzene (EB)/styrene monomer (SM)
unit of 500 000 tonne/year capacity, and the engineering and procurement for
a 300 000
tonne/year polystyrene (PS) plant.
The units are part of Secco’s
new $2.7bn petrochemical complex in Caojing that is due to start
operations in 2005.
In late 2002, ABB signed a $200m deal to provide process
technologies, engineering and procurement services for a naphtha
cracker and olefins conversion unit at the same complex. In
addition, ABB will provide the technology, engineering, and
procurement for a butadiene extraction plant.
Shanghai Secco Petrochemical is a joint venture of BP Chemical,
Sinopec and Shanghai Petrochemical.
BP, Sinopec & SPC
Celebrate SECCO Completion
http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7006982&PC=104cce463ec00
BP, Sinopec and Shanghai
Petrochemical Company, the three parties in the SECCO joint
venture, today celebrated the successful construction and
commissioning of the SECCO manufacturing site at a ceremony in
Shanghai, following a decade-long collaboration.
The 220-hectare SECCO facility, the largest petrochemical complex
in China to date, was built in just 27 months, 3 months ahead of
schedule.
Commissioning of SECCO's 900ktpa cracker, in March 2005, took
just 10 hours, 45 minutes, a world record.
Today's ceremony was attended by several senior Chinese
officials, including Mr. Han Zheng, Mayor of Shanghai and Mr.
Chen Liangyu, Communist Party Secretary of Shanghai. Senior
Sinopec officials including Mr. Chen Tonghai, General Manager
& Chairman of Sinopec, Mr. Wang Tianpu, President, and Mr.
Wang Jiming, Vice Chairman, were also present.
Ralph Alexander, CEO of BP's petrochemicals subsidiary, Innovene,
which is expected to hold a significant interest in the joint
venture, commented, "When SECCO's shareholders first came
together, they shared a common vision: to create a truly
world-class company serving China's rapidly growing demand for
petrochemicals, using the best technology, manufacturing methods
and management expertise available. Now, nearly a decade later,
that vision has been realised. This is truly one of the most
impressive achievements I have witnessed in my 28 years at
BP."
Notes to editors:
The SECCO manufacturing site, situated in the Shanghai Chemical
Industrial Park, is a $2.7bn joint venture between Sinopec,
Shanghai Petrochemical Company Limited and BP.
The site's production capacities are 900ktpa of ethylene, 600ktpa
of polyethylene, 250ktpa of polypropylene, 300ktpa of polystyrene
and 260ktpa of acrylonitrile. The ethylene cracker, SECCO's core
asset, is currently the largest in China as well as one of the
largest in the world.
SECCO has a world-class safety record, with zero fatalities
during construction out of more than 50 million man hours worked.
The site also boasts leading environmental standards.
SECCO's letter of intent was signed in 1996; Shanghai SECCO
Petrochemical Company Limited was formed in 2001; construction of
the site began in 2002 and was completed on December 30, 2004.
BP's activities in China include production and import of
liquefied natural gas (LNG); supplying aviation fuel; importing
and marketing liquefied petroleum gas (LPG) ; fuel retailing;
lubricants; solar power installations; joint venture chemical
plants and the sales of chemicals technology.
Innovene was formed as a wholly owned subsidiary of the BP Group
on April 1, 2005. Its major manufacturing sites include
Grangemouth in Scotland, Lavera in France, Koln in Germany and
Lima, Chocolate Bayou and Green Lake in erathe U.S.
As well as its participation in the SECCO joint venture, Innovene
sells various products in China imported from its plants in the
U.S. and Europe, including polyethylene, polypropylene,
acrylonitrile, alpha-olefins and polybutenes. Innovene also
licenses its world-class polyethylene and polypropylene
technologies in the country.
The headquarters of Innovene's Asia operations is also in
Shanghai.