Expansions: Wanhua to start up second Yantai cracker in 2024; Aramco, TotalEnergies to build US$11 bn petchem complex in Saudi Arabia

China’s Wanhua Chemical, which is a major PU maker, expects its planned No 2 cracker and derivative plants in Yantai, Shandong province, to start up in 2024. The cracker will take ethane and naphtha as feedstocks, which can create synergy with Wanhua’s existing propane-based No 1 cracker, while mitigating risks from feedstock price fluctuations, the company said in a filing to the Shanghai Stock Exchange.

Start of construction was not disclosed.

The US$2.5 billion project, which will have a 1.2 million-tonne/year ethylene capacity, has obtained approval from the Shandong provincial development and reform commission. The project will focus on high-end polyolefin products that China still relies heavily on imports, the company said.

Planned downstream facilities in Yantai include a 250,000 tonne/year LDPE plant; two polyolefin elastomer (POE) units, each at 200,000 tonne/year of capacity; a 200,000 tonne/year butadiene (BD); a 400,000 tonne/year of aromatics extraction unit; and a 550,000 tonne/year cracked gasoline hydrogenation plant.

In other news, Saudi Arabian Oil Company (Aramco) and French chemical firm TotalEnergies will join forces to build a new petrochemicals complex in Saudi Arabia. The project involves investment of about US$11 billion, of which US$4 billion will be funded through equity by Aramco (62.5%) and TotalEnergies (37.5%), the statement said.

The investment decision is subject to closing conditions and approvals, with construction scheduled to begin in the first quarter of 2023 and commercial operation targeted for 2027.

The planned Amiral complex, integrated with the existing Saudi Arabia Total Refining and Petrochemical (Satorp) refinery located in Jubail on Saudi Arabia’s eastern coast, will be owned and operated by Aramco and TotalEnergies.

The overall complex, including adjacent facilities, is expected to create 7,000 jobs locally.

The petrochemicals facility will enable Satorp to convert its refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher-value chemicals.

The complex will eventually provide feedstock to other petrochemicals and speciality chemical plants in the Jubail industrial area, requiring an estimated US$4 billion of additional investment.

The complex will comprise of a mixed feed cracker capable of producing 1.65 million tonnes/year of ethylene, the first in the region to be integrated with a refinery. It will also include two PE units using Advanced Dual Loop technology, a butadiene extraction unit, and other associated derivatives units.

Meanwhile, Aramco along with its 70% owned subsidiary Sabic, are exploring collaboration opportunities with China Petroleum and Chemical Corporation (Sinopec) across refining and petrochemical projects.

“Aramco and Sinopec, one of the world’s largest energy and petrochemical corporations, have signed heads of agreement for a greenfield project in Gulei, Fujian Province, which plans to include a 320,000 barrels-per-day refinery and 1.5 million tonnee/year petrochemical cracker complex,” said a statement. The project is expected to commence operations by the end of 2025.

Additionally, Aramco, Sabic and Sinopec signed a Memorandum of Understanding (MOU) recently, to study the economic and technical feasibility of developing a new petrochemical complex to be integrated with an existing refinery in Yanbu, Saudi Arabia.

Commenting on the development, Mohammed Y Al Qahtani, Aramco senior vice president of downstream, said, “These projects represent an opportunity to contribute to a modern, efficient and integrated downstream sector in both China and Saudi Arabia.”

He explained that these projects underpin Aramco’s long-term commitments to remain a reliable supplier of energy and chemicals to Asia’s largest economy.

The announcements support Aramco’s role as a reliable energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.

(PRA)

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