Total investment 83.7 billion! Latest Progress of Huajin Ami New Project

As a major cooperation project of "the belt and road initiative" initiative between China and Saudi Arabia, Huajin Ami fine chemical and raw material engineering project carries important strategic significance. The project is located in Liaobin Economic Development Zone, Panjin City, Liaoning Province, with a total investment of up 83.7 billion yuan, has been officially included in the national plan, is the core component of the layout of the petroleum and petrochemical industry chain of China North Industries Group, and is also the key support for Panjin City to build an important national petrochemical and fine chemical industry base.

The overall scale of the project is large, including 32 sets of main production equipment and supporting facilities the main construction content covers:

• 15 million tons/year refining capacity
• 1.65 million tons/year ethylene production capacity
• 2 million tons/year PX (p-xylene) capacity

from the start of the pile foundation to the mechanical completion, the total construction period of the project is about 30 months. Complete in September 2025.

important Milestone Node

on July 29, 2024, the project construction ushered in an important node, mechanical completion of 11 of the 32 main process units on the same day it indicates that the project construction has entered the critical stage of debugging and preparation, and the work of "three checks and four fixed" has begun.

List of completed installations

environmental protection and utilities (3 sets):

• sulfur recovery unit
• sour water stripping unit
• solvent regeneration unit

refinery processing unit (3 sets):

• 400000 tons/year coking naphtha hydrogenation unit
• 1.6 million tons/year coal diesel oil hydrogenation unit
• 1.8 million tons/year gasoline hydrogenation unit

chemical polymerization unit (4 sets):

• 2 sets of 500000 tons/year polypropylene plant
• 200000 tons/year high density polyethylene plant
• 450000 tons/year full density polyethylene plant

fine chemical plant (1 set):

• 300000 tons/year propylene oxide plant

refining plate (20 units)

the refining part of the project is based on 15 million tons/year atmospheric and vacuum distillation device as the core, supporting a complete group of secondary processing devices, forming a complete industrial chain from crude oil processing to fine chemical raw material production:

the main processing units include:

• basic processing units such as atmospheric and vacuum pressure, light hydrocarbon recovery, etc.
• Clean fuel production units such as coal and diesel oil hydrorefining, diesel hydrocracking, wax oil hydrocracking, etc.
• Heavy oil processing units such as residue hydrofining and residue catalytic cracking
• high propylene catalytic cracking, aromatics combination (including p-xylene) and other chemical raw material units.
• Chemical auxiliary devices such as coal to hydrogen, synthetic ammonia and methanol

chemical sector (15 units)

chemical part 1.5 million tons/year steam cracking unit as a leader, the actual ethylene production capacity can reach. 1.63 million tons/year, complete downstream polymer and fine chemical plants:

the main product lines include:

• polyolefin Products:
  HDPE, FDPE, 3 sets PP unit
• aromatics Chemical Industry:
  ethylbenzene/styrene plant
• fine Chemicals:
  acrylonitrile, MMA, ABS device
• basic chemical industry:
  glycol, hexene-1 unit

polypropylene (PP) Market

market size: china's polypropylene market demand is about 30 million tons/year, the project. 2 sets of 500000 ton/year PP plant the total production capacity is 1 million tons/year, accounting for about 3.3 of the domestic market share.

Market prospects:

• automotive lightweight, packaging materials upgrade to drive demand growth
• downstream applications such as medical devices and textiles continue to expand.
• The PP plant of the project adopts advanced technology and has obvious advantages in product quality.

Polyethylene Market Analysis

project Configuration 200000 tons/year HDPE plant and 450000 tons/year FDPE plant, with a total polyethylene production capacity of 650000 tons/year.

HDPE Market:

• domestic HDPE annual demand of about 16 million tons, the project accounted for 1.25
• steady growth in demand for applications such as pipes and films
• high-end brand products import substitution space is larger

FDPE Market:

• full density polyethylene technology is relatively advanced, can produce a variety of density products
• technical and cost advantages in film, injection molding and other fields

propylene Oxide Market

300000 tons/year propylene oxide plant for the fast growing polyurethane market:

market characteristics:

• the annual domestic demand for propylene oxide is about 4 million tons, accounting for 7.5 of the project.
• Demand for downstream polyether polyols, propylene glycol, etc. continues to grow.
• High technical barriers and relatively stable profitability

2 million tons/year PX capacity it will significantly increase domestic supply capacity:

strategic significance:

• PX is the core raw material of the polyester industry chain, with a high degree of domestic dependence on foreign countries.
• Project production will effectively ease the domestic PX supply tension
• supporting the downstream polyester industry to form a complete value chain

industry Impact and Development Prospects

regional industrial cluster effect

the construction of Huajin Armei project will significantly enhance the status of petrochemical industry in Liaoning Province, form a synergistic effect with Dalian Hengli, Panjin Haoye and other projects, and create an important petrochemical industry cluster in Northeast China.

Technological Innovation and Industrial Upgrading

• introduce international advanced petrochemical technology and management experience
• promote the transformation of traditional petrochemical to high-end chemicals
• provide demonstration for technical upgrading of regional petrochemical industry

supply chain security

after the project is put into operation, it will:

• reduce dependence on imported chemical raw materials
• enhancing supply security of domestic petrochemical industry chain
• provide stable raw material guarantee for downstream manufacturing industry

huajin Ami Fine Chemical Project, as a benchmark project for Sino-Saudi cooperation, is progressing smoothly and is expected to be fully completed and put into operation in September 2025. The layout of the project in polyolefin, aromatic chemicals, fine chemicals and other fields will have an important impact on the relevant domestic market.

With the gradual commissioning of the project, it is expected that:

• significantly increase domestic petrochemical product supply capacity
• promote the reasonable price of related products
• accelerate the Optimization and Upgrading of Domestic Petrochemical Industry Structure
• provide a successful example for international cooperation under the Belt and Road Initiative

the successful implementation of the project will inject new momentum into the high-quality development of China's petrochemical industry, and will also become an important platform for deepening energy cooperation between China and Saudi Arabia.