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Sinopec and Huntsman to build PO and MTBE plant in Nanjing

Huntsman and Sinopec Jinling to invest $750 million

The Texas-based chemical company Huntsman Corporation (Huntsman) and the Sinopec Jinling Petrochemical Corporation (Sinopec Jinling) have decided to form a joint venture to build and operate a greenfield world-scale Propylene Oxide (PO) and Methyl Tertiary Butyl Ether (MTBE) plant in Nanjing, in the Jiangsu Province, China.

Huntsman will contribute to the joint venture through its Polyurethane division

Sinopec Jinling is one of the refining and petrochemical subsidiary of the chinese super major national oil company Sinopec.

Based in the Wushan Town of Lishui District, at about 50 kilometers southeast of Nanjing, in the Jiangsu Province in China, Sinopec Jinling is specialized in the production of added value chemical products such as surfactant and washing chemicals (Sodium Lauryl Sulfate, Sodium Lauryl Ether Sulfate, Sodium Alpha-Olefin Sulfonate, and Linear Alkyl Benzene Sulfonic acid).

Used as raw materials for the detergent and decontamination applications, Sinopec Jinling chemical portfolio is already well established on the domestic market for home and water treatment applications.

Sinopec Jinling holds its own research and development center to innovate and register its own property rights, especially in waste water and cooling water applications.

The greenfield project of PO/MTBE should be settled close by an existing Sinopec Jinling facility in the Southeast of Nanjing.

To support this project, Huntsman and Sinopec Jinling will establish the joint venture called Nanjing Jinling Huntsman New Materials Corporation Ltd with working interests:

 Sinopec 51% is the operator

 – Huntsman 49%

Huntsman is already running a PO/MTBE plant in Port Neches, Texas, USA, using its own technology.

Huntsman to provide Sinopec PO/MTBE technology

From this expertise, Huntsman will provide the joint venture with its license and manufacturing technology.

Propylene Oxide (PO) is a polyurethane product commonly used for insulation and comfort applications in home furniture, building construction and automotive industry.

PO contributes directly to improve energy efficiency and noise absorption.

Methyl Tertiary Butyl Ether (MTBE) is a fuel additive to help engines internal combustion with the effects to improve performances, reduce consumption and all emissions such as carbon dioxide or sulfur particles.

The local demand for higher performances vehicles and higher quality construction equipment is favoring the importation of high added value petrochemical products that China is willing to produce locally.

To meet this demand, Sinopec Jinling decided to partner with Huntsman because of their experience in this application that can speed up the implementation of the project in re-using in China the well proven processes running in USA.

According to the Heads of Agreement signed between Huntsman and Sinopec Jinling, the joint venture will build and operate a facility with the following capacities:

 – 550 million lbs/y of PO

 – 1.6 billion lbs/y of MTBE

Huntsman and Sinopec Jinling are budgeting $750 million capital expenditure for the project and they expect it to run into commercial operations by end of 2014.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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