Sino-Kuwait joint-venture Refinery Integration Project in Guangdong

  

  

  

  

  Site of Sino-Kuwait Refinery—Donghai Island (2 pictures)

  

  

  1. Overview of project

  The Sino-Kuwait joint-venture Refinery Integration Project in Guangdong is the largest joint venture refinery project, by the China Petroleum and Chemical Corporation and Kuwait National Petroleum Corporation, the joint venture bases on the share proportion of 50:50. The project site located in the new district of Zhanjiang economic and technological development zone in Donghai Islands, with a total land area of 12.26 square kilometers, of which 6.33 square kilometers in the first phase; a total investment of about US $ 9 billion in the first phase, the planned capacity of oil refinery is 15 million ton/year, and produce 1 million tons of ethylene per year, by supporting the construction of a 300,000-ton crude oil dock in Zhanjiang Donghai Island Harbor, it’s planned to put into operation in 2014. The project will implement circular economy mode, use international and domestic advanced production technology and pollution control technologies, and strictly keep in accordance with international environmental standards of the most advanced for the design and management, build the project into a sign and a demonstration project of China's petrochemical industry, build the project into a national circular economy demonstration area.

  2. The advantage of project site

  The site of Sino-Kuwait Refinery-Chemical Integration Project is located in the Donghai Island, which is the fifth largest island of China and the largest island of Guangdong Province, the area of land is 286 square kilometers, now it has a population of about 160,000 people. The Donghai Island has a wealth of unexploited land resources; it was an uncultivated piece of virgin land, which has the advantages for building international deep water port, and developing the modern industry.

  a. It has the deep water coastline for building large oil tankers and oil terminals. Zhanjiang Harbor has an area of 269 square kilometers, there are 38 productive berths, more than 26 of which are more than one million tons, and it has the country's largest 300,000-ton land bank crude oil dock, the largest iron ore terminal of 250,000 tons of South China and the deepest 300,000-ton channel of Asian area. The project site bounded by the south of Zhanjiang port, with a 3.05 km long waterfront, and it’s less than 500 meters from the -21.9 meter deep channel; it’s capable of building 300,000-ton large-scale oil tankers and oil terminals.

  

  

  b. It can take full advantage of pipeline transportation network in Zhanjiang port, to reduce the transportation costs. The Zhanjiang pipeline transportation has three systems: firstly a crude oil pipeline was from Zhanjiang to Maoshi of 115 km in length with the transmission capacity of 8 million tons per year; secondly the refined oil pipeline from Zhanjiang to Southwest, 1740 km long with a carrying capacity of 10 million tons/year; thirdly the refined oil pipeline from Zhanjiang to Pearl River Delta, 1135 km long with carrying capacity of 12 million tons/year. The site of Sino-Kuwait Refinery-Chemical Integration Project in Guangdong in just need a lying of 42 km of pipelines to be connected with the petrochemical terminals and network in Zhanjiang port, through the network, the refined oil can be transported directly to the Pearl River Delta region and the Southwestern China.

  

  

  c. The Donghai Island has sufficient environmental bearing capacity. Zhanjiang has the advantage of atmospheric environmental capacity and total emission control targets. Zhanjiang is surrounded by sea on three sides, and the Donghai Island is surrounded by sea on four sides, the sea area is open, and it’s easy to exchange water with open seas, the atmosphere and the near bank waters areas have a large environmental bearing capacity, the regional atmospheric environment is superior; according to “The Notification about approving the atmospheric environment capacity of the major cities for the air pollution control” by  the State Environmental Protection Administration on September 12, 2005 (Environment Protection Office (2005) 96th,), the environment capacity of SO2 in Zhanjiang is approved for 102,000 tons/years, and the actual emissions volume in Zhanjiang in 2008 is only 40,000 tons, we have sufficient bearing capacity of the environment for large petrochemical projects. The assessment for selecting the Donghai Island new region as the site of project has been approved by the State Environmental Protection Administration on May 21, 2009, in which expressly stated that the construction of oil refinery integration project in the region is practicable.

  d. There’s industrial land available for the project. The Sino-Kuwait Refinery-Chemical Integration Project covers 12.26 square kilometers, of which land area covers 8.7 square kilometers, the backfill area on the beach covers 3.56 square kilometers; the land expropriation is almost completed, the relocation work is well progressing, the approval work for using the sea area has been completed, the procedure for using the land is prepared, and can be used immediately for the project..

  e. The traffic conditions are very advantageous. The site of the Sino-Kuwait Refinery-Chemical Integration Project is at a distance from the railway station, the airport, and the highway of 30 km; the railway of Donghai Island under construction and the highway from Guangdong Haida junction to Port Weilv is crossing the Donghai Island new area where the project site was selected, with connection of Zhanjiang Highway, Yu Zhan Highway, and national highway line 325, line 207 and provincial road line 373, and line 374, they constitute jointly the modern highway network around Zhanjiang area, and Zhanjiang Port area and Donghai Island.

  3. The progress of Project

  On August 10, 2009, the China Petroleum and Chemical Corporation announced a joint venture refinery integration project site selected in Donghai island of Zhanjiang in Guangdong Province.

  On October 26, 2009, the Zhanjiang municipal people's Government, the China Petroleum and Chemical Corporation, Kuwait oil company signed the Memorandum of understanding of Sino-Kuwait Refinery-Chemical Integration Project in Guangzhou, and announced the site of Sino-Kuwait Refinery-Chemical Integration Project determined to be addressed in Donghai island of Zhanjiang, it shows the common will of the parties to speed up the construction of the project, and marks the cooperation of all parties entered a new phase.

  May 13, 2010, the Sino-Kuwait Refinery-Chemical Integration Project got the "pass" from the National development and Reform Commission, and the construction was agreed to be relocated from Guangzhou Nansha to the Donghai Island of Zhanjiang.

  On September 13, 2010, the environment report of the Sino-Kuwait Refinery-Chemical Integration Project was adopted by the Ministry of Environmental Protection for approval.

  On September 21, 2010, the use of sea for the Sino-Kuwait Refinery-Chemical Integration Project was approved by the State Oceanic Administration, the project was agreed to use 510 hectares sea, of which 283 hectares of reclamation.

  On September 30, 2010, the use of land for the Sino-Kuwait Refinery-Chemical Integration Project was reviewed and approved by the Ministry of land and resources, it was agreed to use 633 hectares land.

  On November 21, 2010, the energy saving and emission reduction for the Sino-Kuwait Refinery-Chemical Integration Project were adopted by the National Development and Reform Commission.

  On March 4, 2011, the Sino-Kuwait Refinery-Chemical Integration Project has been officially approved by the National Development and Reform Commission.