Taizhou United East Petrochemical is scheduled to construct 1-mil-mt/yr residue-to-olefin project in Taizhou City of East China's Jiangsu Province, and the project was pending approval at the moment, C1 learned from a source with the company.
If everything goes smoothly, construction would commence at the end of 2011 or the beginning of 2012, according to the source.
At the same time, the company would build a 10,000-mt/yr sulfur recovery unit and 40t/h sour water stripper unit, the source said.
Taizhou United East Petrochemical plans to purchase feedstock residue mainly from Taizhou Petrochemical, a subsidiary refinery of Sinopec Yangzi Petrochemical, the source added.
Taizhou Petrochemical is a major supplier of No. 250 LSHV residue in East China, with supply hitting about 3,000mt per month.
"We will also buy residue from nearby Sinopec refineries if the supply from Taizhou Petrochemical is insufficient," said the source.
With the residue-to-olefin project on-stream, home-produced fuel oil supply would tighten in East China, because Sinopec has already halted supply of residue and slurry in a bid to satisfy demand from underlying refineries, market sources expected.
Taizhou United East Petchem is a joint-venture between Taizhou Petrochemical and Hong Kong Zhongji Petrochemical. It mainly produces methyl ethyl ketone and batylketone.
