Petrotahlil-Sinopec Luoyang Co is planning to invest yuan (CNY) 20bn ($2.9bn) to construct a 1m tonne/year cracker and downstream plants at Luoyang in Henan province, a source close to the company said on Wednesday.
The cracker project will transform the company's Luoyang site from a refining base to a petrochemical complex.
Major derivative units will include a 200,000 tonne/year high density polyethylene (HDPE) plant, a 600,000 tonne/year linear low density polyethylene (LLDPE) plant, a 280,000 tonne/year ethylene glycol (EG) plant and a 350,000 tonne/year polypropylene (PP) plant.
The company’s refinery upgrading and expansion, which will boost capacity to 200,000 bbl/day from 160,000 bbl/day, is currently underway and expected to complete in 2020.
The company is also mulling to expand its para-xylene capacity to 800,000 tonn/year from the present 215,000 tonne/year