The total investment of the project will be US$ 4-5 billion and the payback period is 8 years. Catalyzing and splitting technology will be employed to manufacture intermediate products including olefin products from the heavy oil in the Bohai Oil Field. The annual processing capacity will be 8 million tons with the output of 1.1 million tons. The estimated annual sales income will be US$ 3.866 billion. Cooperative Mode: Sole-funded, JV and Cooperation.
The location will be in the Penglai Economic Development Zone, which is not far from the national first-class open port—Penglai New Port. A 300,000-ton oil dock is under planning, where there is broad hinterland. A piece of land, covering an area of 2-km2, can also be used for the project.
Bordering the Bohai Sea and the Yellow Sea, Penglai is closest to the Penglai 19-3 Oilfield. The oil there is suitable for the application of the newly developed catalyzing and thermal splitting technology for the production of olefin. The technology was newly developed in the 90s of the last century and doesn’t require much for the quality of crude oil. Furthermore the petro product and basic material product structure can be flexibly adjusted according to the demand of the downstream products. The flexible market suitability makes it possible for the further development into a large-scaled petro-chemical production base. Looking at the domestic petro-chemical market, the relative products are in short supply, which provides great market potential and developing space for the above-mentioned products.
Sponsor: Penglai Development and Reform Bureau
