BASF, Sinopec propose $900M chemical plant expansion

BASF and China Petroleum & Chemical Corporation (Sinopec Corporation) on March 19 submitted the technical and commercial feasibility study for the approval of the planned $900 million expansion of their joint chemical Verbund site in Nanjing to the Chinese government. The site is operated by the joint venture BASF-YPC Company Ltd. (BYC).

The completion of the study was formalized by Wang Tianpu, president of China Petrochemical Corporation (Sinopec Group) and Dr. Martin Brudermüller, member of the Board of executive directors of BASF SE, at a signing ceremony in Beijing.

The main pillars of the expansion are:

  Expansion of the steam cracker from 600,000 to around 750,000 metric tons of ethylene per year.

  Expansion of the ethylene oxide (EO) plant and development of EO derivatives to strengthen the ethylene value chain by producing non-ionic surfactants for detergents and the solvent butylglycol ether. New projects regarding production of ethanolamines and ethyleneamines for agrochemicals and dimethylamine (DMA-3) for flocculants.

  Development of the C4 value chain including C4 specialties: Butadiene and isobutene as chemical raw materials, 2-propylheptanol for a new-generation plasticizer and polyisobutene derivatives as fuel and lubricant additives.

  Extension of the acrylics value chain to produce superabsorbent polymers (SAP) for hygiene and industrial applications.

  Expansion of the existing oxo-alcohol and propionic acid plants.

The new activities are expected to come on stream stepwise starting already this year; the cracker expansion is scheduled for 2009/2010.

“The completion of this feasibility study report marks an important step in the cooperation between Sinopec and BASF at BYC. Sinopec will fully support the growth of BYC, which is expected to make significant contribution to meet domestic market demand.” said Wang.

“The expansion of BYC further strengthens our close partnership with Sinopec and makes BYC even more powerful,” said Brudermüller. “The expansion is another significant demonstration of BASF’s long-term commitment to China’s chemical market.”

Both companies also agreed to integrate another joint operation Yangzi-BASF Styrenics (YBS) in Nanjing into BYC to increase efficiency and make full use of existing synergies.

About BASF-YPC
BASF-YPC Co. Ltd. is a 50-50 joint venture between BASF and Sinopec, founded in 2000, with a total investment of $2.9 billion in the first phase. The groundbreaking for the site, located in Nanjing, Jiangsu Province, took place on September 28, 2001. BASF-YPC Co. Ltd. successfully started commercial production at a steam cracker as well as nine downstream plants in China in June 2005. These plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and minimize environmental impact. The site produces high-quality chemicals and polymers for the rapidly growing Chinese market. The site also has a gas-fired power plant and an international port on a tributary of the Yangtze River to ensure optimum energy supply and logistics.