Shandong Hongrun Petrochemical plans to begin the construction of a 1-mil-mt/yr deep catalytic cracking (DCC) project this year, said a source with the refinery.
The construction is expected to last three years until 2014, according to the source.
The DCC unit will produce such products as propylene, MTBE, gasoline, chemical feedstock and gasoil.
"Feedstock supply for this project is not certain yet, but imported fuel oil should be major feedstock," said the source.
The refinery's plan to build a DCC unit has something to do with China's policy of exempting consumption taxes for producing olefin with fuel oil, some market sources pointed out.
Located in Weifang City of Shandong Province, Hongrun Petrochemical has 3.7-mil mt/yr of topping capacity. The refinery is a subsidiary of Sinochem Group.
