In the past ten years, private refining and chemical companies have made vertical integration breakthroughs from the bottom up using polyester as the starting point. While realizing the layout of the entire industrial chain from “a drop of oil” to “a thread”, they have also expanded and improved the mid- and upstream industries. layout. Entering a new period of development during the “14th Five-Year Plan”, private refining and chemicals are targeting the field of new chemical materials spurred by the development of domestic “new consumption” and “hard technology”, relying on the rich “chemical raw material library” provided by the upstream “big chemical” platform. And the downstream high-end chemical new materials industry chain will be laid out to start a new round of growth. The intervention of giants will help build the petrochemical leader to reach new heights, and may also bring more turmoil to the market.
Hengli, Zhejiang Petrochemical and Shenghong Refining and Chemical
A total of 41.95 million tons of crude oil quota was harvested, a year-on-year increase of 50%
Rongsheng Petrochemical (002493) stated on the interactive platform on February 16 that the company has obtained a crude oil usage quota of 20 million tons in 2022, and will communicate closely with relevant departments to apply for new quotas in a timely manner.
According to news, the Ministry of Commerce recently issued the first batch of crude oil non-state trade import allowances for 2022, with a total quota of 109.03 million tons, an 11% reduction from the same period in 2021. The quotas of some independent refineries in Shandong and Northeast China have been reduced.
In terms of refining and chemical entities, the first batch of quotas for traditional local refining (including Sinochem) was issued to 61.3 million tons, a year-on-year decrease of 28%; in terms of private large-scale refining and chemical echelons, Hengli, Zhejiang Petrochemical and Shenghong Refining and Chemical received a total of 4195 tons million tons, up 50% year-on-year; other corporate entities issued a total of 5.78 million tons of crude oil quotas, down 41% year-on-year.
Judging from the list of the first batch of distributions, several local refineries have not yet received the first batch of quotas. It is rare that there is zero distribution in the first batch. The distribution ratio of other local refineries that have received quotas is around 50-70%, and the overall distribution ratio is around 50-70%. The amplitude has also declined compared with last year.
The first batch of crude oil non-state trade import allowances in 2022 (top ten):
Sheng Hong joined
The domestic refining and chemical industry welcomes its third big boss!
Recently, an investor asked Dongfang Shenghong’s secretary-general about the refining and chemical situation. The company responded that the Shenghong refining and chemical project was preparing for commissioning and commissioning during the Spring Festival. It is reported that the Shenghong refining and chemical integration project plans to start oil testing in February 2022, start secondary refining processing in March, and start chemical equipment in the second half of the year, ensuring that the entire refining and chemical integration industry chain will be opened within 2022.
The project’s single-line scale of 16 million tons is currently the largest single-line production capacity in my country. Its single-line scale is more than twice the average size of global refineries and nearly five times the average size of my country’s refineries. According to the profitability calculations of Sinopec Engineering & Construction Co., Ltd., an authoritative organization in the industry, of 5 million to 25 million tons/year refineries, the 15 million to 18 million tons/year scale range is the optimal economic scale for refineries. The Shenghong refining and chemical integration project is in the optimal scale range and can take advantage of the scale of the device to directly affect energy consumption levels and thus production costs. It is reported that Shenghong Refining and Chemical has obtained approval from the National Development and Reform Commission to use 16 million tons of imported crude oil, 2 million tons in 2021, 15.89 million tons in 2022, and 16 million tons of imported crude oil from 2023.
On January 6, Oriental Shenghong released its 2021 performance forecast. The net profit attributable to shareholders of listed companies is expected to be 4.1 billion to 5 billion yuan in 2021, a year-on-year increase of 435.00% to 552.44%. The company said: “During the reporting period, the company’s production and operations further improved and maintained good profitability. The production capacity of EVA photovoltaic resin produced by Sierbon was stable at more than 200,000 tons/year, and the annual output of Ganghong Fiber was 200,000 tons with differentiated functionality. The chemical fiber project and Zhonglu Technology’s 60,000-ton PET recycled fiber project per year were completed and put into production in the second half of 2020, increasing profit contribution year-on-year.”
Dongfang Shenghong adheres to the layout of the entire industry chain from “a drop of oil” to “a thread”. In addition to the 16 million tons/year refining and chemical integration project, it also plans to build a new “2# ethylene glycol + phenol/acetone project” and “POSM and Polyol Project” will further increase the proportion and added value of chemicals in refining and chemical projects. At present, the company has completed the acquisition of Sierbon for 14.36 billion yuan. In the future, its business will extend to the fields of new energy materials such as EVA, and form an industrial matrix of “refining + polyester + new materials”.
With Shenghong Refining and Chemical’s 16 million tons/year refining and chemical integration project about to be put into production, this means that Oriental Shenghong will officially become the third largest private refining and chemical company in China. Judging from the current proportion of crude oil usage quota , the domestic refining and chemical industry has also officially ushered in an era of profound change.
Chemical fiber giants who have laid out large-scale integrated projects
Harvesting has begun
In addition to Shenghong Refining and Chemical’s 16 million tons/year refining and chemical integration project, the other three major private refining and chemical projects are Zhejiang Petrochemical’s “40 million tons/year refining and chemical integration project” and Hengli Petrochemical’s “20 million tons/year” “Integrated Project” and Hengyi Petrochemical’s “8 million tons/year refining and chemical integration project” have even more impressive “records” in 2021, and they all aim in new directions.
Hengli Petrochemical
On January 27, Hengli Petrochemical announced that its subsidiary Hengli Petrochemical (Dalian) New Materials Technology Co., Ltd. plans to invest 19.988 billion yuan to build a 1.6 million tons/year high-performance resin and new materials project, and plans to invest 4.001 billion yuan in construction per year. Producing 2.6 million tons of high-qualityThe high-energy polyester project is expected to achieve net profits of 6.864 billion yuan and 842 million yuan respectively after the project reaches production and achieves results.
The Hengli Petrochemical Refining and Chemical Integration Project adopts internationally advanced technology to process low-cost crude oil into chemical products with higher added value, minimizing low-value-added refined oil products. At the same time, auxiliary materials and public works, It has great advantages in labor and other aspects, offsetting the disadvantages of relatively old refineries in terms of depreciation and financial expenses. Although it is in the market competition stage, the large-scale refining and chemical industry is like a sponge full of water (profit space). Hengli Refining and Chemical’s high efficiency will wring out more water than expected. In the future, Hengli Petrochemical’s refining and chemical integration project will still surpass Industry average profitability. At the same time, Hengli Petrochemical is accelerating the layout of downstream high-end chemical new materials and plans to invest in the construction of 1.6 million tons/year high-performance resin and new material projects and 12 lithium battery separator production lines to continue to improve its own profitability and enhance growth certainty.
Rongsheng Petrochemical
On January 29, Rongsheng Petrochemical released its 2021 performance forecast. It is expected that the net profit attributable to the parent company in 2021 will be 12.5 billion to 13.3 billion yuan, a year-on-year increase of 71.03% to 81.98%. During the reporting period, the company relied on the extra-large “less oil, more chemicals” refining and chemical integrated unit to optimize energy utilization, reduce unit product emissions, and achieve green and low-carbon development. After the “40 million tons/year refining and chemical integration project” of the controlled subsidiary Zhejiang Petrochemical Co., Ltd. was put into operation, the production of each device progressed smoothly, the operating load increased steadily, and the benefits were released significantly during the reporting period.
Rongsheng Petrochemical implements the “crude oil-PX-PTA-polyester filament” full industry chain layout. The first phase of Zhejiang Petrochemical’s refining and chemical project was fully put into operation at the end of 2019, and profitability has steadily increased; the second phase of the refining and chemical project will also be launched in January 2022. It is fully put into production to further enhance the competitive advantage of the company’s integrated industrial chain and achieve rapid development. As one of the leading companies in the PTA industry, the company has a total controlling stake in PTA production capacity of approximately 16 million tons. At the same time, the company’s second phase PTA project with an annual output of 6 million tons, cooperating with Hengyi Petrochemical, is under construction, and its leading position has been continuously consolidated. Relying on the “rich raw material library” in the upstream, the company continues to deepen the industrial chain and deploys the new chemical materials business downwards. Among them, the first phase of Zhejiang Petrochemical has laid out 90,000 tons/year MMA and 260,000 tons/year PC production capacity; in the second phase, in addition to laying out 260,000 tons/year PC, it has also built a 300,000 tons/year LDPE/EVA co-production unit, with additional product additions. Value continues to increase.
Recently, the list of China’s top 500 listed companies by market value in 2021 was released. Rongsheng Petrochemical was ranked 99th on the list with a total market value of 183.9 billion yuan, an improvement of 4 places from last year, and successfully jumped into the top 100 threshold.
Hengyi Petrochemical
It is a leading domestic “refining and chemical fiber” enterprise. It has completed the dual industrial chain layout of “crude oil refining-PX-PTA-polyester” and “crude oil refining-benzene-caprolactam-nylon”. It currently participates in the controlling PTA annual production capacity of 1,600 Ten thousand tons, the annual polyester production capacity is 7.765 million tons, the polyester chip production capacity is 740,000 tons/year, and the polyester bottle chip production capacity is 2 million tons/year. In order to further consolidate its leading position and enhance its scale advantage, the company continues to build new production capacity. Especially after the Hengyi Petrochemical Brunei refining and chemical project was put into operation, the production of each unit was smooth, with strong scale advantages, leading technology and obvious cost advantages. The first phase of the Hengyi Brunei refining project was put into operation in September 2019, with a refining capacity of 8 million tons and a PX production capacity of 1.5 million tons. While the first phase is operating stably, the company is making every effort to promote the second phase of the Brunei project. The project plans to produce 14 million tons of energy per year and the investment amount is expected to be US$13.654 billion. Products include 2 million tons/year paraxylene, 2.55 million tons gasoline, etc., as well as 1.65 million tons/year ethylene, 2.5 million tons/year PTA, and 1 million tons/year polyester bottle flakes. After the project is completed, the company will Further strengthen the upstream production capacity foundation and development leading advantages, improve the company’s operating business structure and integrated collaborative operations, and enhance overall profitability.
Facing the complex and ever-changing market environment, “improving upstream and strengthening downstream” has become an inevitable strategic choice for petrochemical leaders. On the one hand, by enlarging and improving the layout of the midstream and upstream industries, we will further expand the business support and development barriers of high-end chemical raw materials, making the foundation for the development of the entire industry chain wider and wider, and leaving space for the expansion of downstream industries. With the gradual implementation of “carbon neutrality” policies, the new energy market still has vast space and demand is still a blue ocean. The intervention of giants will help build the petrochemical leader to reach new heights, and it may also bring more changes to the market. turmoil.
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