Sinochem Energy Co Ltd, the energy business arm of China's state-owned Sinochem Group, will operationalize the second phase of its Quanzhou refinery base in eastern China's Fujian province in 2020.

This move will raise its annual petroleum refinery distillation capacity from 12 million tonnes to 15 million tonnes a year, which will help meet rising domestic energy demand.

In addition to boosting its refining capacity, the annual production of 1 million tonnes of ethylene (including related derivatives) and 2 million tonnes of aromatics in the second phase of Sinochem Energy's Quanzhou petrochemical project will be guaranteed by the increase in the production volume of chemical raw materials.

Luo Hongjing, deputy-general manager of Sinochem Energy's innovation and strategy department, said there are a number of advantages in running the Quanzhou refinery base in Fujian province.

The province has well-developed oil tanker ports and supporting facilities, which are close to the markets of the Association of Southeast Asian Nations that have a strong need for various chemical products.

"The demand for high-density polyethylene is high for domestic infrastructure projects, large packaging, pipe and cable manufacturers. There is a severe shortage of domestic supplies," Luo noted.

For the long term, the company plans to build the third phase of the Quanzhou refinery base to push its petroleum refinery distillation capacity to up to 35 million tonnes a year, with 3.4 million tonnes of annual ethylene production volume and 5 million tonnes of aromatic hydrocarbon production capacity.

At present, Sinochem Energy owns five large crude carriers, which transport crude oil to customers all over the world. It also charters vessels from large ship owners around the world to meet customers' demand for transportation services.

(Writing by Tian Zhang  Editing by Tammy Yang)
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