Fujian Refining and Chemical Integration Project has 33 years of petrochemical dreams

Meizhou Bay, blue skies Miles, Tianhai phase. A large ship shuttled to the South Shore Xiaoyu Port area, and a white smoke from the refining tower rose over the new area of ​​the Fujian Refinery Ethylene project. The modernization of the petrochemical base was rushed.


This scenario is not easy to come by. From 1976 to 1992, Fujian took 16 years to produce its first drop of oil; from 1991 to 2002, it struggled for 11 years and the oil refining and ethylene integration project was approved by the state; The integration project was put into operation, and finally the dream of Fujian's petrochemical industry was completed. It took 33 years to complete the dream process.


Fujian is the frontline of Haiphong. It has been in a state of combat readiness for a long time and the construction of large industries has become a blank. In 1976, the state prepared to invest 300-500 million yuan in Fujian to build a 2.5 million-ton/year refinery project. At the beginning of the site selection, 44 pre-selected sites were reported from Jidong, Minzhong and Weinan. However, due to the need for deep-water ports that can dock 50,000 to 100,000-ton oil tankers, suitable construction hinterland and convenient traffic conditions, only Xiaoyu on the south bank of Xizhou Bay, Xiuyu on the north bank, Mawei and Xiamen in Fuzhou meet the requirements. At that time, the opinions in the province tended to be cauda equina, but if it was built in horsetail, 6 million cubic meters of silt and backfill sand would be required for each, and the amount of engineering and investment would be huge. The argument was not passed.


In 1979, the national economy was readjusted. In addition to the unresolved site disputes, the refinery project was postponed. The province relinquished the project and the establishment organization was withdrawn.


In the 1980s, the construction of oil refineries was revisited. At the time, Zhang Wanxin, the director of Beijing Yanshan Chemical Plant, was invited by Fujian Province to visit the refinery site. After inspection, Zhang Wanxin carefully compared the details of relevant materials, especially the water supply, and finally stated at a special meeting: “My opinion is that Xiao Yu has the conditions for building a large-scale petrochemical industry and can build modernization. Large-scale, internationally competitive large-scale petrochemical enterprises. It is recommended that your province will no longer shake the address of the refinery, and further delay will delay the development opportunity.” So far, the site Xiao Yu seems to be determined. In 1985, Fujian and Indonesian companies reached an agreement: the technology used in Spain, the equipment used in the United States, and the Fujian Province also sent people to visit Spain. However, Fujian Province has to assume 600 million yuan in debt for this project. At that time, the economic foundation of the province was very weak and the risk was high. At last, it gave up the cooperation.


In 1988, Xiamen, as a special economic zone, was eager to build an oil refinery in Xiamen, and the site was turned into a dispute between Xiao Yu and Xiamen. At that time, when the Central Committee appointed Li Renjun, an advisor to the State Planning Commission, to visit Fujian, he finally stated his position to the Secretary of the Fujian Provincial Party Committee Xiang Nan, and it was more appropriate for the refinery to be located at Xiao Yu.


Tossed for more than 10 years, the construction plan has finally settled. In 1989, Fujian and Sinopec formally signed a cooperation agreement. In 1990, the annual production capacity of 2.5 million tons of Fujian refinery project was fully constructed. In September 1992, Fujian Province produced the first drop of oil.


The construction of the ethylene project has also gone through twists and turns. In 1990, Taiwan businessman Wang Yongqing planned to build an annual output of 770,000 tons of ethylene in Xiamen. In August of the same year, Chen Guangyi, secretary of the provincial party committee, and Jia Qinglin, governor of the province, obtained an ethylene project with an annual output of 300,000 tons from Beijing. In 1992, they passed the review of the project proposal. However, at this time, Xiamen's annual output of 770,000 tons of ethylene project was ready to start, and the annual output of 300,000 tons of ethylene project had to give way. Afterwards, the ethylene project in Xiamen was frustrated and the ethylene project in Fujian Province became blank again.


At the beginning of 1994, Zhu F, the then Vice Premier of the State Council, visited Fujian and agreed to resume the preliminary work of the 300,000-ton ethylene project in Fujian Province. He suggested that the scale be adjusted to an annual output of 450,000 tons. After negotiations between Fujian, Sinopec and Korea’s Kumho Group broke up in 1996, Sinopec proposed a merger and refining project for ethylene and ethylene, and re-selected project partners. Fujian and Sinopec undertook more than one year of negotiations on the Refining and Ethylene Integration project with ExxonMobil and Amoco in the United Kingdom, and finally chose Exxon Mobil as their partner. In order to ensure the long-term stability of crude oil supply, Exxon also invited Saudi Aramco to join.


In October 2001, Sinopec signed a framework agreement with Exxon Mobil. In September 2002, the State Council approved the feasibility study report of the project. Fujian Refining & Chemical Co., Ltd., Exxon Mobil, and Saudi Aramco jointly invested in Fujian Refining and Ethylene Integration Project. The shares held by the three parties were 50%, 25%, and 25% respectively, and the joint venture's joint venture period was 50 years. The total investment of the project is 38.4 billion yuan, expanding the original refinery capacity of Fujian Refining Corp. from 4 million tons per year to 12 million tons. The new annual production of 800,000 tons of ethylene cracker, 800,000 tons of polyethylene, 400,000 tons of polypropylene and 70 Million tons of aromatics combined devices. After production, it can produce 7.46 million tons of high-quality refined oil and 1.28 million tons of polyolefin products each year. The annual sales revenue exceeds 60 billion yuan, and the competitiveness of refining and ethylene is at the leading level in Asia.


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