Sinopec Hainan Refining & Chemical lets contract for ethylene expansion

Jan. 15, 2021
Sinopec has let a contract to John Wood Group to provide EPC services for work related to a petrochemical expansion at Sinopec Hainan Refining & Chemical's refinery development in the Yangpu Economic Development Zone of Hainan Free Trade Zone, China.

China Petroleum & Chemical Corp. (Sinopec) has let a contract to John Wood Group PLC to provide engineering, procurement, and construction (EPC) services for work related to a petrochemical expansion at subsidiary Sinopec Hainan Refining & Chemical Co. Ltd.’s (HRCC) 8-million tonnes/year refinery development in the Yangpu Economic Development Zone of Hainan Free Trade Zone (FTZ) in southern China.

As part of the more than $120-million contract, Wood will deliver EPC services for the sitewide pipe rack and associated pipework, power cables, telecommunications, and lighting for HRCL’s proposed ethylene renovation and expansion project at the operator’s integrated complex, the service provider said on Jan. 12.

Already well under way and scheduled to be completed as well as commissioned by October 2022, the planned ethylene renovation and expansion project will enable the complex to produce up to 1 million tpy of ethylene derivatives as well as expand the site’s ability to further process crude oil, allowing Hainan FTZ’s ethylene output to serve ethylene demand across China and globally, according to Wood and a series of releases and reports both from the government of China and Sinopec.

On Nov. 10, 2020, construction on the supporting terminal included as part of HRCC’s ethylene expansion project officially began, accelerating the overall renovation and expansion works into “the fast lane,” the government of Hainan Province said in a Nov. 11, 2020, release.

Hainan’s provincial government said HRCC’s ethylene expansion will include a supporting terminal with four berths to accommodate the project, including:

  • One 50,000-tonnes berth.
  • Two 20,000-tonnes liquid chemical berths.
  • One 30,000-tonnes general cargo berth.

Based on the current construction plan, the supporting terminal’s fourth berth will be put into use by the end of August 2021, with all berths to be completed before July 8, 2022, according to the government of Hainan.

Sinopec first publicly announced its push for HRCC’s ethylene expansion in June 2020.

The project—which aims to boost China’s downstream sector by more than $14.1 billion/year and transform Hainan FTZ into a new engine for regional economic growth—will include 10 sets of unidentified equipment for chemical production, three sets of equipment for oil refining, and supporting storage and terminal installations, Sinopec said on June 11, 2020.