Recently, news from Tonghuashun Financial Research Center stated that when an investor asked Dongfang Shenghong whether the company would invest in building a chemical plant project in the second half of the year, Dongfang Shenghong replied that Shenghong’s 16 million-ton refining and chemical integrated project is currently under construction. chemical project, which is expected to be put into operation by the end of this year.
As early as June 30, key progress was made in the construction of the Shenghong Refining and Chemical Integration Project, the largest single-process project in the country, in Xuwei New District, Lianyungang. The project successfully completed the mechanical handover of the first batch of main production equipment such as atmospheric and vacuum distillation and officially entered the preparation stage for production.
Another chemical fiber giant with a full industrial chain layout is about to be born!
Shenghong Refining and Chemical is located in the Lianyungang petrochemical industry base. It is the third company after Zhejiang Petrochemical and Hengli Petrochemical to start with chemical fiber and complete the downstream chemical industry chain. A 10,000-ton large chemical refinery with integrated refining and chemical refinery, its single atmospheric and vacuum processing capacity reaches 16 million tons, second only to Hengli Petrochemical.
It is reported that the Shenghong Refining and Chemical Integration Project is a key promotion project of the national “Petrochemical Industry Layout Plan”. Its 16 million tons/year atmospheric and vacuum distillation unit and wax oil hydrogenation unit are the largest single set in China. maximum. The output rate of gasoline, diesel and coal products can also be appropriately adjusted according to the demand for refined oil products to enhance its market competitiveness.
As a chemical fiber giant, its chemical raw material PX unit is the first to introduce a two-stage reslurry recovery process in China, and is currently the largest single-series paraxylene unit in the world. In addition, its continuous reforming device is also the largest domestically produced process technology in the country, achieving complete independence of key technologies.
In order to solve the problem of self-sufficiency in its chemical fiber raw materials, Honggang Petrochemical’s second phase 2.4 million tons/year PTA expansion project officially started construction in May 2019 and was officially put into production in March 2021, creating a complete “crude oil- Aromatic hydrocarbons/ethylene glycol-polyester-chemical fiber” green textile industry chain and “crude oil/methanol-olefins-new chemical materials” high-end petrochemical industry chain. Shenghong has opened up the development process of the entire industrial chain from crude oil to chemicals to chemical fiber, and is no longer constrained by the high dependence on imports of chemical fiber raw materials PX/PTA and outsourcing. At the same time, we will accelerate the development of the petrochemical industry in the direction of “diversification of raw materials, high-end products, industrial clustering, and green and low-carbonization”.
The long-awaited Shenghong refining and chemical integration project, which can generate nearly 100 billion in revenue and nearly 10 billion in net profit, is finally expected to be completed and put into operation this year. According to the preliminary feasibility study report, the project can achieve an average annual sales revenue of approximately 92.5 billion yuan excluding tax and an average annual net profit of approximately 9.4 billion yuan after reaching production. In terms of production capacity, the designed crude oil processing capacity is 16 million tons/year, the aromatics complex unit scale is 2.8 million tons/year (based on paraxylene production), and the ethylene cracking unit scale is 1.1 million tons/year.
Guosheng Securities believes in a research report that Dongfang Shenghong’s 16 million-ton refining and chemical integration project is expected to be put into operation at the end of 2021, which is expected to significantly increase the company’s performance in the next two years. The company’s 2022 Compared with Rongsheng Petrochemical and Hengli Petrochemical, which have also formed an integrated refining and chemical industry chain layout, the annual valuation is still significantly underestimated.
China’s private refining and chemical industry: core assets with global competitiveness
In recent years, domestic refining capacity has shown a growth trend, and the market share of local refineries has increased. Data show that in 2019, domestic refining capacity was close to 880 million tons, and local refineries (including traditional refineries and emerging private refining) were 270 million tons, accounting for about 30%.
In the context of survival of the fittest in the global oil refining industry, the advantages of the integrated layout of China’s private refining and chemical enterprises have been highlighted.
Compared with traditional main refineries, private integrated refining has lower production costs and a richer product structure. Private refineries accelerated crude oil turnover during the oil price plunge in 2020 and achieved good overall results. In the first half of 2020, the net profits of Zhejiang Petrochemical and Hengli Refining and Chemical were both around 4.5 billion yuan, equivalent to a net profit of 450 yuan per ton, leading Shanghai Petrochemical by about 700 yuan/ton.
At the same time, analysts believe that the commissioning of private refineries can force the transformation of independent refineries, and the upgrading of competition will promote the clearance of small-scale production capacity, thus accelerating progress The domestic refining and chemical industry is undergoing transformation and upgrading.
In addition, due to the significant advantages of large-scale private integrated refineries in terms of scale, proportion of chemical products, and energy and material consumption, China’s private refining and chemical industry is a core asset with global competitiveness. Compared with existing refineries as a whole, private refining has significantly stronger economies of scale, which helps it reduce production costs. According to data from the U.S. Oil and Gas Magazine, the average size of global refineries is 6.44 million tons/year, and the average size of domestic refineries is only 4.23 million tons/year. The 20 million tons refining project is more than three times the average size of global refineries. It is nearly five times the average size of refineries in my country.
In addition, with the transformation of the global energy structure, the growth rate of demand for refined oil has slowed down, while some chemical products are facing shortages. Compared with traditional refineries, private refining uses hydrocracking technology and is equipped with PX equipment, which can achieve high production of chemical products; at the same time, the yield of refined oil is only 40%-50%, which is nearly 70% higher than that of traditional refineries. reduced.
root�According to research data from China Petroleum and Petrochemical Research Institute, by realizing mutual supply of refining and petrochemical materials, sharing of energy resources and public works, integrated refining and chemical enterprises can increase the added value of their products by 25% compared with refining enterprises of the same size, saving Construction investment is more than 10% and energy consumption is reduced by about 15%.
At the same time, research shows that private refining is located in coastal areas, and companies have their own crude oil and refined oil terminals. The logistics costs for the entry and exit of raw materials and products are far away. lower than inland refineries. </p
