Sino-Saguray Ethylene Project: A New Benchmark for Global Petrochemical Cooperation and Supply Chain Restructuring

Project core progress and technological breakthrough

on September 12, the Zhongshagulei ethylene project with a total investment of 44.8 billion yuan (about 6.4 billion US dollars) ushered in a key milestone-all 10 cracking furnaces were capped. This achievement marks a significant advance in the construction progress of the country's major foreign-funded projects since the full start of construction on February 19, 2024, and is expected to be completed and put into operation in 2026.

The technical configuration of the project reflects the highest standards of the global petrochemical industry. The cracking furnace device adopts the configuration of "2 gas furnaces and 8 liquid furnaces" with a total weight of over 20000 tons. The cracking efficiency has reached the world's leading level by introducing the patented technology of the United States Luems Company. As the core equipment of the ethylene plant, the plant has set a new domestic record in terms of processing capacity and construction scale, and its operating level will directly affect the economic benefits of the entire industrial chain.

It is worth paying attention to the breakthrough of project construction efficiency. In the case of limited site conditions, it only takes 10 months from the hoisting of the first module to the capping, which is significantly shorter than the 12-14 month period regular by similar projects in China. This "China speed" benefits from the rich engineering experience of China National Petroleum Sixth Construction Co., Ltd., which has more than 100 cracking furnace construction experience.

Global Supply Chain Impact and Cooperation Demonstration

the industrial layout of the Zhongshagulei ethylene project will significantly affect the global petrochemical supply chain pattern. The core of the project is 1.5 million tons/year ethylene plant, with an estimated maximum capacity of 1.8 million tons. The downstream industry chain is complete: ethylene downstream includes 10/1 million tons/year ethylene oxide/ethylene glycol, 400000 tons/year HDPE, 600000 tons/year mLLDPE/HDPE and 50000 tons/year hexene-1; the downstream of propylene covers 950000 tons/year polypropylene unit (400000 tons/year impact resistance/random 550000 tons/year homopolymerization/random), 25/150000 tons/year phenol acetone, 270000 tons/year bisphenol A and 290000 tons/year polycarbonate. In addition, 910000 tons/year pyrolysis gasoline hydrogenation, 220000 tons/year butadiene extraction, 56000 tons/year butene -1 and 570000 tons/year aromatics extraction units are equipped.

As the largest Sino-foreign joint venture project in Fujian Province, the project is jointly constructed by Saudi Basic Industries Corporation (SABIC), Fujian Energy and Petrochemical Group and Zhangzhou Jiulongjiang Group, reflecting the deepening of Sino-Saudi energy and chemical cooperation under the "Belt and Road" initiative. After the completion of the project, a new petrochemical industry cluster along the southeast coast of China will be formed, forming a tripartite pattern with the bases in East China and South China.

From the perspective of the global market, the project will reshape the supply pattern of ethylene and downstream products in the Asia-Pacific region. The release of 1.5 million tons of ethylene production capacity will effectively alleviate the tight supply and demand in China and surrounding markets, especially basic chemical products such as polyethylene, polypropylene, and ethylene glycol. For overseas traders, this means a realignment of trade flows within the Asia-Pacific region and the emergence of new business opportunities.

The technical standards and cooperation model of the project provide a new reference model for international petrochemical investment. The introduction of advanced technology from the United States, the adoption of international management model, and the realization of multi-shareholder cooperation are expected to be replicated and promoted in countries along the "Belt and Road", opening up a new path for global petrochemical industry cooperation.

Looking forward to the future, the Zhongsha Gulei project will not only enhance the international competitiveness of China's petrochemical industry, but also promote the re-layout of the global petrochemical supply chain and bring new development opportunities to international partners.