BASF Guangdong Integration Base Put into Full Operation: Accumulated Investment Exceeds 60 billion Yuan, Sinopec's Foreign Investment Pattern Welcomes Historic Node

26 March the full commissioning ceremony of BASF (Guangdong) integrated base was held in Zhanjiang Donghai Island. Guangdong Provincial Party Committee Secretary Huang Kunming, Governor Meng Fanli and BASF Executive Board Chairman Kaili jointly launched the installation. Minister of Commerce Wang Wentao and German Federal Minister of Economy and Energy Reicher delivered video speeches respectively. A number of historical records were refreshed simultaneously: the largest foreign investment project in China's petrochemical industry, the "first case" of wholly foreign-owned foreign investment in the heavy chemical industry, and BASF's largest single overseas investment to date.. Project in september 2022 full construction, as of this year at the end of February, the accumulated investment exceeded 60 billion yuan. The strategic weight is obvious.

1. plant system panorama: million tons of ethylene as the axis, downstream product matrix directly to high value-added terminals.

Upstream cracking constitutes the feedstock spindle. The base is equipped with naphtha and n-butane as the main raw materials. Annual output of 1 million tons of ethylene steam cracking device. Simultaneous production of basic chemicals such as propylene, benzene, toluene, xylene, pyrolysis fuel oil, isobutylene, etc., to provide a stable supply of raw materials for downstream units throughout the base.

The downstream product matrix has an outstanding breadth of coverage, and the following capacity data are critical to industry practitioners: ethylene Oxide/Ethylene Glycol/Refined Ethylene Oxide 66/83/200000 tons/year polyethylene 500000 tons/year butyl octanol 500000 tons/year butyl acrylate 375000 tons/year non-ionic surfactant 215000 tons/year, ice acrylic (two sets) 2 × 190000 tons/year isooctyl acrylate 100000 tons/year, Neopentyl Glycol (100%) 80000 tons/year formaldehyde 110000 tons/year citral 40000 tons/year syngas 50000 standard cubic meters per hour.

Product terminals cover high value-added fields such as automobiles, electronics and electrical appliances, construction, high-speed rail, food packaging, home and personal care, aerospace, and pharmaceuticals. The depth and breadth of the industrial chain are at the top level among domestic and foreign bases. After production, the base will become BASF's third largest integrated base in the world.

2. three-dimensional market impact study: supply increment, supply chain resilience and foreign investment signals.

On the domestic market: acrylic and esters, ethylene glycol, polyethylene and other categories of local supply substantial expansion. The large-scale release of local production capacity of the above-mentioned varieties will form a direct substitution pressure on the existing import sources, and the import volume and price range of the relevant categories are expected to be structurally adjusted. For overseas suppliers engaged in the above-mentioned varieties of trade, the export strategy to China needs to be combined with the actual production capacity of the base climbing rhythm, timely assessment of market share impact.

On supply chain security: large integrated bases enhance regional supply chain resilience. Under the background of the current high oil price volatility, the integration advantage of raw material self-supply and product diversification effectively buffers the risk of price fluctuation of a single raw material route, and has positive support for the stability of the regional and even global petrochemical industry chain.

Confidence in foreign investment: sole proprietorship has a strong demonstration effect. As the first wholly foreign-owned large-scale project in the field of heavy chemical industry, the smooth commissioning of BASF Guangdong base is a heavyweight endorsement of China's business environment by foreign-funded enterprises, or will drive more international chemical giants to accelerate the deepening of the layout in China, worthy of supply chain practitioners continue to pay attention to the follow-up chain effect.