BASF and Sinopec signed MOU for INA facility in China
BASF and China Petroleum & Chemical Corporation (Sinopec) signed in Shenzhen, China, a Memorandum of Understanding (MOU) to start the feasibility study of a new isononanol (INA) facility in Maoming, Guangdong Province, China.
With this MOU, BASF and Sinopc intend to extend their actual cooperation in the 50/50 joint venture BASF-YPC Corporation (BASF-YPC) located in Nanjing, one of the largest petrochemical complex in China.
This isononanol plant should then be owned and operated by a 50/50 dedicated joint venture between BASF and Sinopec.
At the stage of this feasibility study, BASF and Sinopec are planning to build a world-scale isononanol production unit.
The petrochemical industry in China is growing fast but should remain a net importer of petrochemical products until 2030 since the demand is also increasing substantially.
In addition this petrochemical industry is moving more and more toward innovative plastics.
In this context the Chinese market is expanding very fast for the plasticizers used in the thermoplastic and performance plastics industry.
Two types of plasticizers emerge as to become the mostly used in the petrochemical industry:
– Diisononyl Phthalate (DINP) for the automotive industry, building and construction, floor protection, cables and wires insulation
– Diisononyl non-Phthalate for the sensitive applications such as food packaging and prosthesis
BASF owns numerous patents and licenses in these advanced plasticizers, such as Hexamoll® and DINCH®, being part of the valuable assets supporting the joint venture with Sinopec.
Isononanol is a critical feedstock component to produce these plasticizers.
The demand for these new plasticizers should be concentrated in specific industrial regions such as the Guangdong Province in the southern China.
MPCC, the Sinopec Maoming Chemical Company in Maoming is running since 1955 a petrochemical complex with actual capacities of:
– 270,000 b/d (13.5 million t/y) refining
– 1 million t/d of ethylene
BASF and Sinopec Isononanol project to integrate Maoming MPCC Complex
MPCC is also working on a large revamping and expansion project of the refinery to increase capacity up to:
– 400,000 b/d (20 million t/y)
Beyond the capacity increase, MPCC and Sinopec achieve product restructuring and quality up-grading in order to enlarge their local portfolio, improve efficiency and meet the international standards for low sulfur diesel and gasoline.
This Maoming refinery expansion and revamping program is expected for completion in 2013.
In this context, Maoming provides excellent integration possibilities for feedstock supply and deliveries of the isononanol plant project in connection with the local refining and petrochemical infrastructures.
For these reasons, BASF and Sinopec are considering to build this new isononanol plant in the Maoming High-tech Industrial Development Zone, Maoming, Guangdong province, China.
The target of the feasibility study is to provide BASF and Sinopec with a first estimate of the capital expenditure supported by information and data covering the technical, economical and commercial aspects of the project.
BASF and Sinopec are to perform this feasibility study on fast track to be completed at year end 2012 to make final investment decision (FID) in following.
