ZPC lets contract for Phase 2 of Zhoushan integrated complex

Zhejiang Petroleum & Chemical Co. Ltd., also known as Zhejiang Petrochemical Co. Ltd. (ZPC), has let a contract to Axens Group, Rueil-Malmaison, France, to supply catalysts for units to be built as part of the second phase of its 800,000-b/d integrated refining and petrochemical complex in Zhoushan, Zhejiang Province, China (OGJ Online, June 15, 2020; Nov. 6, 2018).

As part of the contract, Axens will deliver catalysts for the methylacetylene and propadiene (MAPD) and phenylacetylene C₃ liquid-phase selective hydrogenation units, as well as catalysts for the pyrolysis gasoline (Pygas) first and second-stage selective hydrogenation units of the Zhoushan complex’s Phase 2 two-train, 2.8-million tonnes/year ethylene cracker currently under construction, the service provider said.

The new contract follows ZPC’s earlier contract award to Axens to supply catalysts for Pygas selective hydrogenation units at the grassroots 1.4-million tpy ethylene plant built as part of the complex’s Phase 1 development, Axens said. First commissioned in late 2019, the Phase 1 petrochemical plant quickly began producing olefins and aromatics to targeted specifications, according to the service provider (OGJ Online, May 4, 2020).

Axens said it began initial technical discussion with ZPC on the complex in 2016 after the operator started its first design studies for the project.

The first 400,000-b/d phase of ZPC’s complex was commissioned in late 2018, while Phase 2—which will nearly double processing and production capabilities at the site—is scheduled for commissioning during first-quarter 2021 (OGJ Online, Mar. 12, 2020; Jan. 17, 2019).

ZPC—a joint venture of China-based Rongsheng Holding Group Co. Ltd. 51%, Juhua Investment Co. Ltd. 20%, Tongkun Investment Co. Ltd. 20%, and Zhoushan Marine Comprehensive Development and Investment Co. Ltd. 9%—previously said it would invest about 160 billion yuan to complete both phases of the project.

In late 2018, Saudi Aramco also signed a memorandum of understanding with ZPC to acquire ownership interest in the complex (OGJ Online, Oct. 26, 2018). As part of the agreement, Aramco agreed to purchase the government of Zhoushan’s 9% interest in the project, as well as provide long-term crude supplies to the complex.