ExxonMobil Huizhou 220kV Ethylene Transmission and Transformation EPC Project Formally Starts Construction

On September 13th, the EPC project for the 220 kV substation and supporting 220 kV transmission line from ExxonMobil Huizhou Ethylene Phase I Project to Zhongqu Station officially started construction. This power project is the indispensable "power heart" of Daya Bay Park and also the power energy guarantee for the normal operation of ExxonMobil Huizhou Ethylene Project. The proposed 220 kV Meifu Station is an indoor GIS and outdoor main transformer substation, with a total land area of 11338 square meters. After the completion of the project, it can provide sufficient power guarantee for the operation of the entire ExxonMobil Huizhou Ethylene Project, meet the development needs of the park's electricity load, inject strong "electricity" into the high-quality construction of a world-class green petrochemical industry base and the creation of a trillion level petrochemical energy new material industry cluster in Huizhou, and also provide strong energy and electricity support for the development of a world-class green petrochemical industry cluster in Guangdong.The ExxonMobil Huizhou Ethylene Project is a world-class chemical complex project with competitive advantages, located in the Daya Bay Petrochemical Complex Project Park in Huizhou, Guangdong Province. The project includes a flexible feed steam cracking unit with an annual output of 1.6 million tons of ethylene, as well as two sets of high-performance linear low-density polyethylene units with an annual output of a total of 1.2 million tons, a low-density polyethylene unit with the world's largest monomer annual output of 500000 tons, and two sets of differentiated high-performance polypropylene units with an annual output of a total of 950000 tons. After the completion of the project, it can fill the gap in the domestic high-end chemical market and play an important role in alleviating the structural shortage of polyolefin products supply in China, reducing the import dependence of the Chinese market on high-performance polyolefin products.

World petrochemical giants are laying out in Huizhou Daya Bay one after another

The overall tone of Guangdong's development this year is to prioritize stability and strive for progress while maintaining stability. Where is the stable determination and confidence? Where does the confidence in progress come from? Major projects are the "ballast stone" for expanding domestic demand and stabilizing growth.

01

Hengli Petrochemical and ExxonMobil major projects

In the Daya Bay Petrochemical Industrial Park in Huizhou City, dense pipelines undulate and tower bridges stand tall. The two sets of PTA main units with an annual output of 2.5 million tons for the Hengli (Huizhou) PTA project have sprung up along the coast. On the construction site, workers from various construction units are conducting individual equipment testing, system linkage debugging, and preparing for acceptance. Now all buildings have been topped out, the project is coming to a close, and will be put into operation in the fourth quarter of this year, "Du Xi, assistant general manager of Hengli Petrochemical (Huizhou) Co., Ltd., told Southern magazine reporters. After the entire facility is completed, it will enter the trial production stage, and safety, environmental protection and other aspects will be controlled according to the standards of formal production, which is equivalent to formal production.At night, the Huizhou Daya Bay Petrochemical Base is covered in "iron trees and silver flowers". This is a scene of the "Steel Forest" in Daya Bay Petrochemical Park, and also a microcosm of the Guangdong coastal petrochemical belt. Currently, the development momentum of Huizhou's industrial cluster is strong, and with the successive completion and operation of major projects, a world-class green petrochemical industry highland is accelerating its rise. According to the 14th Five Year Plan for the Development of Advanced Manufacturing Industry in Huizhou City, by 2025, the output value of the petrochemical energy and new materials industry in Huizhou will reach 500 billion yuan, and a world-class green petrochemical industry highland will be initially built. At present, Guangdong's five major refining bases and parks along the coast have formed a chain of pearls and clusters, giving rise to a production value of over one trillion yuan.

02

 The 'Chain Supplement' project has arrived

Hengli Group, founded in 1994, focuses on refining, petrochemicals, polyester new materials to the upstream and downstream of the textile industry chain, forming a full industry chain development pattern of "one drop of oil to one piece of cloth". Hengli Group ranks 75th in the 2022 Fortune Global 500 and 24th in the 2022 China Enterprise 500. The Hengli (Huizhou) PTA project, with a total investment of 15 billion yuan, mainly produces purified terephthalic acid (PTA) and related supporting infrastructure.The Hengli (Huizhou) PTA project is the first base of Hengli Group's layout in southern China, and also the largest PTA project in Guangdong's production capacity. After full operation, according to the current market PTA prices, it will achieve an annual sales volume of about 25-30 billion yuan. More importantly, after the completion of the project, it will fill the gaps in the petrochemical industry chain of Daya Bay Petrochemical Industrial Park, and help build a more complete petrochemical industry chain in Huizhou and even Guangdong. Why do you say that? Let's first take a look at what PTA is. The upstream of PTA is aromatic hydrocarbon products; Downstream, new materials such as fibers, films, and plastic products can be widely used in industries such as packaging, electronics, healthcare, and automobiles. As Du Xi explained, PTA is a key product that serves as a link between the previous and the next in the petrochemical new materials industry chain. In other coastal areas of Guangdong, although PTA production is also available, the production capacity is small and far from meeting the industrial demand. As one of the seven national key petrochemical industry bases, Daya Bay Petrochemical Zone has refining, ethylene and other links in the upstream. However, due to the lack of intermediate links, the upstream chemical products lack on-site conversion capacity. The upstream raw materials for the Hengli (Huizhou) PTA project are partially sourced from xylene produced by CNOOC Huizhou Refinery. We have signed a cooperation framework agreement with CNOOC, and will now deliver their products to us for on-site conversion through the 'partition wall supply' of the two kilometer pipeline, "said Du Xi. In recent years, Huizhou has established the Huizhou New Materials Industrial Park in Baihua Town, Huizhou, which is an important carrier for the downstream extension of the Huizhou petrochemical industry chain. The Huizhou No.1 Highway, which is currently under construction, will become a main road after completion, connecting the Huizhou New Materials Industrial Park with the Daya Bay Petrochemical Zone. The settlement of Hengli (Huizhou) PTA project will add a crucial link between Daya Bay Petrochemical Zone and Huizhou New Materials Industrial Park, supplying raw materials for downstream new material production. After "supplementing the chain" and "extending the chain", it is of great significance to connect the upstream and downstream of the petrochemical industry chain in Daya Bay and even the entire Guangdong.

03

  The Fortune Global 500 gathers

Since the "cloud start" on April 22, 2020, the construction of ExxonMobil's Huizhou ethylene project has continuously made breakthroughs - the main project land has been fully delivered, the underground comprehensive pipeline network project has been completed, and the pile foundation project is accelerating... This "giant" project has a total investment of about 10 billion US dollars and will be constructed in two phases. The first phase of the project has an investment of approximately 6.7 billion US dollars, constructing a 1.6 million ton/year ethylene cracking unit. The main products include 1.2 million tons/year metallocene polyethylene, 500000 tons/year high-pressure polyethylene, 475000 tons/year impact resistant polypropylene, and 480000 tons/year polypropylene. At the same time as the completion and operation of the first phase project, the construction of the second phase project will be initiated. This is ExxonMobil's first wholly-owned petrochemical project in China, which is of great significance for deepening international economic and trade cooperation. The Daya Bay Development Zone, located on the coast of the South China Sea, was established in 1993. Since November 2002, when the largest Sino foreign joint venture project in China, the CNOOC Shell Nanhai Petrochemical Project, was officially launched, the Daya Bay Petrochemical Zone has grown from nothing to a world-class petrochemical industry base in just 20 years. At present, Daya Bay Petrochemical Zone has achieved a production capacity of 22 million tons/year for refining and 2.2 million tons/year for ethylene, and its integrated refining and chemical scale ranks among the top in the country. The Hengli (Huizhou) PTA project is located on Petrochemical Avenue in Daya Bay. Along the Petrochemical Avenue, a series of large and small chemical new material enterprises are densely distributed, outlining a complete industrial chain from refining to new materials, becoming a microcosm of the Daya Bay petrochemical industry cluster. Shell, CNOOC, LG Chem, BASF, Clariant Chemicals, Oude Oil Storage, ExxonMobil, Hengli... In the entire petrochemical region, multinational enterprise projects gather. Currently, there are 16 customers who have formed a "wall supply" with CNOOC and Shell, and the on-site digestion rate of chemical raw materials in the park has reached 71%. One by one, large projects gather to form a vibrant industrial ecosystem. As of now, there are 104 settled projects in Daya Bay Petrochemical Zone, with a total investment of 250.2 billion yuan, and nearly 90% of the investment is from Fortune Global 500 and industry-leading enterprises. There are as many as 13 Fortune 500 companies investing in the Daya Bay Petrochemical Zone.

Large projects release energy and drive great development - In 2021, the Daya Bay Petrochemical Park achieved an output value of 1858.9 billion yuan, an increase of 38.3%; From January to July this year, the petrochemical industry in Daya Bay Petrochemical Zone achieved an added value of 30.19 billion yuan, an increase of 21.7%. Since the beginning of this year, Daya Bay Petrochemical Zone has vigorously promoted the construction of major projects such as Hengli Petrochemical, ExxonMobil Huizhou Ethylene Phase I, Huizhou Petrochemical Product Structure Optimization and Quality Upgrade, as well as 13 provincial and municipal key projects. From January to July, the total fixed assets investment of the whole district was 30.63 billion yuan, up 19.2%. Among them, industrial investment was 15.15 billion yuan, an increase of 62.2%; Infrastructure investment was 5.59 billion yuan, an increase of 48.5%. Currently, the petrochemical industry in Daya Bay is continuously moving towards high-end development.

04

  Coastal 'steel forest' hatches trillion level output value

From space overlooking the coast of the South China Sea, there are modern petrochemical industry zones lined with steel pipes, such as Jieyang Nanhai, Huizhou Daya Bay, Guangzhou, Maoming, and Zhanjiang Donghai Island. These zones are connected in a chain from east to west, generating a production value of over one trillion yuan. How can Guangdong further build a more competitive petrochemical belt for the future? The Action Plan for the Development of Green Petrochemical Strategic Pillar Industry Clusters in Guangdong Province (2021-2025) (hereinafter referred to as the "Action Plan") proposes to focus on the coastal petrochemical industry belt, relying on the five major refining bases and parks of Guangzhou Petrochemical Base, Huizhou Daya Bay Petrochemical Base, Zhanjiang Donghai Island Petrochemical Base, Maoming Petrochemical Base, and Jieyang Dananhai Petrochemical Base, further expanding the scale, optimizing the structure, and creating a characteristic industrial layout of "coordinated development of one belt, two wings, five bases, and multiple parks".The goal of Jieyang Nanhai Petrochemical Base in Guangdong is to achieve a production capacity of over 90 million tons/year for refining, 9 million tons/year for ethylene, and 5 million tons/year for aromatics by 2025. The industrial scale and added value are expected to exceed 2 trillion yuan and 480 billion yuan, respectively. So, what are the development priorities of these five integrated refining and chemical bases and chemical industrial parks? Let's take a look at the deployment of the Action Plan. Guangzhou Petrochemical Base. We will focus on optimizing the petrochemical industry chain, consolidating and leveraging the development advantages of fine chemicals and daily chemicals, and developing high-end green chemical products such as deep processing of synthetic resins, high-performance synthetic materials, engineering plastics, new chemical materials, and daily chemical products. Huizhou Daya Bay Petrochemical Base. Based on the Daya Bay Petrochemical Park and led by the CNOOC Huizhou Petrochemical Refinery, CNOOC Shell Ethylene, and ExxonMobil Huizhou Ethylene projects, a closely connected and scientifically reasonable petrochemical industry chain has been established, focusing on promoting the development of high-end chemicals and electronic information chemicals, initiating the planning and construction of fine chemical parks, and forming a layout of "one zone, multiple parks" and resource sharing. Zhanjiang Donghai Island Petrochemical Base. Led by the Zhongke Guangdong Refining and Chemical Integration Project and driven by BASF's new integrated project, we aim to develop clean oil products, basic chemical materials, synthetic materials, and fine chemical products, forming a relatively complete petrochemical industry chain. Maoming Petrochemical Base. With Sinopec Maoming Branch's refining and ethylene projects as the core, and Maoming High tech Development Zone and Maonan Petrochemical Zone as the support, we will develop a series of high-quality specialty products such as finished oil, lubricating oil, solvent oil, organic raw materials, synthetic resins, synthetic rubber, liquid wax, and high-end fine chemical products. Jieyang Nanhai Petrochemical Base. Accelerate the construction of PetroChina Guangdong Petrochemical Project and its middle and downstream petrochemical projects, strengthen the connection and cooperation with Daya Bay Petrochemical Zone, focus on developing clean oil products, chemical raw materials, synthetic materials, fine chemicals and other petrochemical industries, and build a number of high-performance polymer materials, functional composite materials and high-end fine chemical projects. From the perspective of the development ideas of the five major bases, overall emphasis is placed on optimizing the spatial layout of petrochemical parks, with the extension of the industrial chain as the center. At the same time, the focus of each distinctive product is also clarified. Various bases and parks are competing for high-quality development, which will continuously promote the Guangdong green petrochemical industry cluster to climb to the high-end of the global value chain.