As the first project combining refinery and ethylene cracker in China, the one-million-ton ethylene project will come up with several comprehensive effects: unifying auxiliary equipments, closely knitting the layout, shortening the industrial process, securing material supply, maintaining high efficiency, utilizing land efficiently, saving investment and reducing cost. All those features will improve profitability and enhance the competitive edge of Sinopec.

The ethylene refining and chemical project of one-million-ton capacity is the first of this kind designed and constructed by Sinopec in China, in line with domestic- and international-leading standard. It meets international first-class benchmark, taking the lead in domestic market. The project can be divided into three parts: the newly built ethylene cracker of annual capacity of one million tons, the yearly 12.5-million-ton refinery reconstruction project and the auxiliary heat and electricity project. Total investment of one-million-ton ethylene project is 26.8 billion yuan, occupying an area of 294 hectare. Newly drafted land takes up 230 hectare, all of which is desolated land. The project will help implement scientific development pattern and circulative economy concept, stimulate regional economic development and enhance the competence of Sinopec from a global perspective.

Till now, 20.3 billion yuan has been put in place for the one-million-ton ethylene and refining project, accounting for 75.6 percent of the total investment. The three components, namely the refinery, the ethylene cracker and the auxiliary heat and electricity project, are all under smooth construction in line with designed planning and control. Pipelines, storage and waste-water treatment infrastructures are under trial test before the actual operation. According to overall project planning, all the construction will be finished and the project will go on stream within 2009. Once completed, the project will become the production base for 10-million-ton refinery and one-million-ton ethylene in China. The yearly output of high-quality and wide-range petroleum, chemical and fiber products can reach 12 million tons, which may accelerate the development of Chinese chemical industry. It is estimated that those projects can stimulate more than 100 billion yuan in term of industrial output value every year, exerting accumulative effects on industries in Tianjin and its neighborhood.

The integrated one-million-ton ethylene and refining project is also considered as the demonstration project at low cost, being ecological and environmental-friendly. It makes full use of alkaline land, maintaining optimal allocation and utilization of land resources. The project gives priority to desalinized seawater, implements sewage treatment thoroughly and increases the reuse rate of gray water. It reduces emission of waste gas, waste water and industrial residue by strengthening classification treatment and comprehensive utilization of pollutants. As an important effort to enhance self-innovation of China’s petrochemical equipment, up to 91.5 percent of the refining equipments will be locally sourced, while 60 percent of the gears for the ethylene cracker is China-made.

The one-million-ton ethylene refining and chemical project is the first extra-large project approved by State Council after Tianjin Binhai New Area was written into the national development strategy. This landmark project is a specific step to fulfill the special policy granted by the Central Government to the Binhai New Area, taking the lead in the construction of Binhai Industry Park at a national level. The project will also accelerate the development of local middle-and-down stream petrochemical industry within the region and stimulate comprehensive flourish of related businesses, such as harbor, logistics and storage, with related investment of about 50 billion yuan to be expected.