Scale of Construction
Ethylene 0.36 million tons per year, propylene 0.24million tons per year, butane and other byproducts 0.18million tons per year
Ethylene and propylene are the most widely used organic chemical basic raw materials. Ethylene is mainly used to produce polyethylene, PVC, ethylene oxide, and so on. And propylene is used to produce polypropylene, PO, ECH, and so on. Our annual output of crude oil will maintain 160 million to 200 million tons in the next two decades. However, in 2020, the demand of oil will reach 450 million tons in China and there will be a gap of 250 million tons. Since the price of oil in the international market keeps increasing and the supply of oil products is growing more and more acute, producing olefins with CCT will become a very important strategic choice in the chemical industry. It is estimated that in 2015, the production capacity of ethylene is 20 million tons but the demand will be 34 million tons. Besides, in 2015, the production capacity of propylene is 18 million tons but the demand will be 26 million tons. So there’s a big gap between supply and demand.
Content of Construction
The project is built in Jining Development Zone of Chemical Industry. It has already developed the technology of MTO and MTP. Meantime, 1.8 million tons per year methanol projects will be built as supporting facility.
Relative Supporting Facility
Currently the supporting public works in the development zone can meet the need of construction. There are 12 large-scale coal mines with the capacity of 30 million tons/ per year near there, which can be considered to ensure raw materials.
Analysis of Investment and Benefit
The total investment is 10 billion RMB and the sales revenue per year will reach 5 billion after completed. So the profit is 0.9 billion RMB, ROI is 9% and the payback period is 13 years (including 2 years of construction period).
The first-phase preparations are being made.
Ways of Cooperation
Joint venture, sole proprietorship or joint-stock system