Expansions: Ineos and Sinopec complete set up of Tianjin jv in China; Enterprise ramps output at second PDH plant in US

Ineos and Sinopec complete set up of Tianjin jv in China

Chemical firm Ineos says it has completed the formation of a 50/50 joint venture with Chinese petchem firm Sinopec for the Tianjin Nangang Ethylene project, announced in December 2022, which is currently under construction by Sinopec and expected to be on-stream by April 2024.

The petrochemical complex includes a 1.2 million tonnes/year cracker, a new 500 kilotonnes/year high-density polyethylene plant to produce Ineos pipe grade under license and 11 other derivative units, such as the 300 kilotonnes/year ABS (Acrylonitrile Butadiene Styrene) plant .

The 300 ktpa ABS plant will be based on Ineos’s Terluran ABS technology. It is the second of three ABS plants that Ineos has agreed will be built and operated in China in partnership with Sinopec, the first being the 600 ktpa plant currently under construction by Ineos in Ningbo.

The completion of the agreement today marks the continued progression of the significant petrochemical deals announced by the parties in July and December last year, and highlights the close relationship and growing collaboration between Sinopec and Ineos, the firms add.

This is the fourth venture signed in 2022 with Sinopec. Two are petrochemical complexes and two are product joint ventures. Each is a similar scale.

Of the three projects previously announced with Sinopec is Ineos agreement to acquire a 50% stake in Shanghai SECCO Petrochemical Company Limited, a subsidiary of Sinopec. SECCO currently has a production capacity of 4.2 million tonnes of petrochemicals - including ethylene, propylene, polyethylene, polypropylene, styrene, polystyrene, acrylonitrile, butadiene, benzene and toluene. It is a 200-hectare facility, located inside the Shanghai Chemical Industry Park.

Enterprise ramps output at second PDH plant in US

In other news, US oil/gas firm Enterprise Products Partners has announced the start of service at its second propane dehydrogenation (PDH) plant (PDH 2) in Chambers County, Texas. Underwritten by long-term, fee-based contracts, PDH 2 has the capacity to consume 35,000 barrels per day (BPD) of propane to produce 825,000 tonnes/year of polymer grade propylene. Combined with Enterprise’s existing PDH 1 plant, the company can consume 70,000 BPD of propane to produce around 1.5 million tonnes/year of PGP at its Chambers County complex.

“Propylene is the basic building block used to produce virtually all durable products and, as one of the main pillars of modern civilization, is essential to human survival and improved quality of life,” said A.J. “Jim” Teague, co-chief CEO of Enterprise’s general partner. “PDH 2 will provide abundant and cost-advantaged shale-based, on-purpose production to supply our petrochemical customers with the feedstock to produce products that meet the needs of a growing global population. Our newest PDH plant is among US$3.8 billion of major growth projects that we announced would begin service and generate new sources of cash flow by the end of 2023.”

Companywide, Enterprise now has the capacity to produce around 5 million tonnes/year of propylene. In addition, the new PDH 2 facility is integrated with the company’s propylene system that includes more than 1,000 miles of high-capacity pipelines, over 1.3 million tonnes of storage capacity, and ability to export approximately 1.8 million tonnes/year. By providing access to centrally located market hubs, the company’s propylene infrastructure network gives customers the capability to balance supply and demand, thereby facilitating improved utilisation of Enterprise assets.

Enterprise Products Partners is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products production, transportation, storage, and marine terminals and related services; and a marine transportation business that operates on key US inland and intracoastal waterway systems.


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