Petrochemical

 

1. Introduction to the Project

1.1 Project Background

1.1.1 P roduct Introduction
PTMEG is a kind of linear chain polyether glycol with different molecular mass, produced by means of ring opening polymerization of THF via cation, which is mainly used to produce spandex, polyurethane elastomer and ester-ether copolymerizing elastomer.
2 0,000t/year PTMEG project of the original PetroChina Qianguo Petrochemical Company was completed and put into production in April 2006 , design production capacity of the device is 21 , 000 t/year THF, 2 0,000t/year PTMEG and 11 . 5 million standard m3/year hydrogen made by methanol decomposition. This device is awaiting transfer and cooperation .
1.1. 2 Market Prospects
At present, the world's total production capacity of PTMEG is about 600,000t/year, and total consumption about 500,000t. Spandex production percentage keeps rising, so in the coming 5 years, the world's demand for PTMEG will grow rapidly. China has PTMEG production capacity about 16 0,000t, output about 109 ,000t, and consumption about 144 ,000t, which has become the global largest PTMEG producing country. However, the newly established device is not steady, the device's rate of operation is only about 60 %, in addition, spandex market has developed rapidly, so raw materials of PTMEG are mostly imported. It is predicted that, annual demand growth rate of PTMEG will be 7% . This project has broad market prospect.
THF is mainly used is mainly used as soft segment of segmented polyurethane or segmented polyether-polyester . The segmented polyurethane rubber made from PTMEG with average molecular weight 1000 is used in tyre, drive belt, gasket, synthetic leather, film and paint . Segmented polyether-polyester is thermoplastic elastomer . If average molecular weight of PTMEG is 2000, it can be used to produce polyurethane elastic fiber. Due to good blood anti-coagulation, segmented polyurethane of PTMEG has been applied in other aspects of medical polymer material field .
Target market: PTMEG is mainly used to produce spandex, so the target market should be spandex production concentration area. Capacity distribution of Chinese spandex products: Zhejiang 35% , Shandong 23% , Jiangsu 22% , Shanghai 13% , the remaining Henan, Jilin, Liaoning and Guangdong 7% . Therefore, the target market should be determined as Zhejiang, Shandong and Jiangsu.
1.1.3 Technical Analysis
Main technology of t his project is the process package patented technology purchased from the American PENN Company and South Korea PTG Company. This project includes three sets technologies: methanol decomposition hydrogen production technology, THF technology and PTMEG technology.
( 1 ) Hydrogen production technology
Adopt methyl alcohol and steam reforming and PSA hydrogen production (methyl alcohol hydrogen production for short) technology developed by Shanghai Yalian Ruixing Gas Technology Co., Ltd. and Southwest Research & Design Institute of the Chemical Industry.
( 2 ) THF technology
Adopt furfural-produced THF technology of the American PENN Company: after the raw material furfural is free of high-boiling residues and low-boiling residues, it conducts decarbonylation reaction in the effect of catalyst to get furan intermediate product, then furan hydrogenation is conducted to get coarse THF that will be refined to get THF product. Raw material for furfural production is mainly corn cob, cheap agricultural waste containing pentose.
( 3 ) PTMEG technology
Adopt the production technology of South Korea PTG Company (solid catalyst): solid catalyst and acetic anhydride is used in polymerization reaction, the polymerization product has poly chain of acetate end group (tetramethylene) that can be taken off by means of basic hydrolysis or ester exchange.
1.1.4 A dvantageous Conditions of Project Construction
( 1 ) Resource Advantage
Songyuan City is a national commodity grain base, which can realize annual output of 5 million tons of corn , and output of cobs 1 . 25 million tons. Surrounding areas of Songyuan is teemed with corn, having abundant cob resources. There are more than 20 furfural manufacturers with output 60,000t, and the product quality and quantity (32,000t furfural is required for this project) can fully meet the demand for present and long-term development of t his project.
(2) Capital advantage
Save at least 1/3 investment compared purchasing 2 0,000t/year PTMEG idle devices with purchasing equipment for new plant, and other advantages are mature and reliable technology, complete auxiliary equipment and supporting public utilities, low operation cost in the early stage and rapid production. 20,000t/year PTMEG production device of the original PetroChina Qianguo Petrochemical Company has advanced technology and intact equipment , as well as relatively complete auxiliary production facilities and utility system .
( 4 ) Complete financial service system
The city has complete financial service system, and branches of BOC, ICBC, CCB, ABC, BOC, POSB, BOJ, NESC and CCZQ spread all over the city, providing sufficient capital support for the development of local economy.
( 5 ) Sufficient human resources
It has 14 secondary vocational schools with strong faculty to meet the requirement of the city's enterprises for secondary professional and technical talents; a number of vocational high schools including Songyuan Vocational Technical College and Technician Training School can cultivate 8,000 professional vocational technical talents every year; in addition, Songyuan Municipal Government has signed talents and scientific and technological cooperation framework agreement with Changchun Branch of CAS and Jilin University, and developed deep cooperation with Academy of Agricultural Sciences of Jilin Province and Jilin Agricultural University to provide strong support of science, technology and talents for the enterprise development.
( 6 ) Obvious location advantage
Songyuan is an important supporting city in the middle urban group of Jilin Province, which, as the important traffic hinge and logistics collection and distribution center in the northeast and eastern region of Inner Mongolia, connects 4 provinces (districts), 8 cities, 14 counties (cities), and radiates surrounding population over 34 million. Songyuan has 6 railway trunk lines, 3 expressways and 11 national and provincial highways passing through the border of Songyuan. In particular, opening up of Songyuan Belt Expressway has realized successful networking of national main trunk line in Songyuan. It takes 90 minutes from downtown of Songyuan to Changchun or Harbin Airport. There are 7 transport wharfs and total berths over 3,800 tons along the bank of the Songhua River, sailing upstream to Jilin City, flowing and downstream to Harbin City. Songyuan Airport under construction will be formally open to air traffic in 2016 , Songyuan Inland Port can totally complete customs clearance and inspection and quarantine formalities in the border, and exported commodities can be directly cleared by the customers and delivered to the port.
1.2 Content and Scale of Project Construction
1.2. 1 P roduct Scale
Annual production capacity is 2 0,000t PTMEG device.
1.2. 2 Construction Content
The production scale is 21000 t/year THF device, 20 , 000 t/year PTMEG device, and 11.5 million standard m3 /year methanol decomposition hydrogen production device.
1. 3 Total Investment of the Project and Capital Raising
Total investment of the project is 647.71 million yuan, including construction investment 522.45 million yuan.
Table 1: Summary Table of Total Investment of the Project   Unit: 10, 000 Yuan
 
 
 
 
No.
Expense Name
Amount of Investment
Proportion of Total Investment %
Remarks
1
Construction investment
52245
80.66
 
2
Interest incurred during construction
 
 
 
3
Circulating capital
12526
19.34
 
 
Total investment of the project ( 1+2+3 )
64771
100.00
 
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
After the project reaches the production capacity, it will realize annual sales income 780 million yuan, profit 145 million yuan, payback period 4.5 years ( after tax, including 1.5 years of construction period ) and ROI 22% .
Table 2: List of Major Indexes for Forecast of Financial Benefits
No.
Name
Unit
Index
Remarks
1
Sales income
RMB
10, 000/a
78000
Normal year
2
Total profit
RMB
10, 000/a
14500
Normal year
3
FIRR of all investments
%
17
After income tax
4
FNPV ( Ic=10% )
RMB10, 000
565.76
After income tax
(operation period 10 years)
5
Period for recovery of all investments (after tax)
a
4.5
Including 1.5 years of construction period
6
ROI
%
22
 
Note: "RMB10, 000" in the Table shall be RMB.
1.5 Cooperative Ways
Joint venture .
1.6 What to be Invested by Foreign Party
Capital .
1.7 Construction Site of the Project
Songyuan Petrochemical Industry Circulating Economic Park.
1.8 The On-going Condition of Project
Cooperative plan for the project has been prepared.
2. Introduction to Partner
2.1 Basic Conditions
Name: Songyuan Petrochemical Industry Circulating Economic Park
Address: No. 929, Shihua Street, Ningjiang District, Songyuan City
2.2 Overview
Songyuan Petrochemical Industry Circulating Economic Park is the provincial-level development zone established on October 13, 2011 with the approval of People's Government of Jilin Province, having planning area ( starting area) area 4.64 km 2 . At present, the Petrochemical Park proposes to expand to be 28 km 2 , and related review and approval formalities are being handled. Songyuan Petrochemical Park focuses on recovering of the original oil refining and chemical engineering device, depends on resource advantage of the city's petroleum and natural gas, takes market as orientation and product as link, enhances investment attraction, improves service supporting functions, and conducts reasonable and efficient transformation and organic combination of resources to form a characteristic chemical industrial cluster with product chain upstream and downstream integration, reasonable resource configuration, advanced technology, strong relevance among industries and comparative advantage, establish the industrial pattern complementing each other's advantages with Daqing Petrochemical, Changchun FAW, Jilin Chemical and other surrounding industrial clusters, and dividing work reasonably, and build Songyuan Petrochemical Park into a domestic top-level and internationally well-known petrochemical industrial base integrating petrochemical engineering, natural gas chemical industry and fine chemical engineering.
2.3 Contact Method
Contact Method of Project City (Prefecture):
Contact Unit: Economic and Technological Cooperation Bureau of Songyuan City
Contact Person: Han Baidong
Tel: 0438-2706617   13514384757
Fax: 0438-2706617
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