Hengli Petrochemical PX Project Put Into Operation Long Term To See PX Prices Continue To Decline.

In March 24th, under the strict supervision of the company's leaders, technical personnel day after day guidance and the joint efforts of all the staff, Hengli petrochemical Dalian 20 million tons / year refining and chemical integration project, the first line device has successfully opened up the whole production process, and produced gasoline, diesel, aviation coal oil, PX and other products, and produced stable operation.

The project from debugging, functional intermodal pportation to open the whole process, set the industry's fastest record.

In April 2017, the project broke through, and in December 15, 2018, the unit started to work and started to work. At 22:15 in March 15, 2019, the 1# diesel hydrocracking unit produced qualified products including the cracked tail oil (high quality six diesel), heavy naphtha (high quality reforming feedstock) and light naphtha and other products, marking the first successful operation of the world's largest 3 million ton / two full cycle diesel hydrocracking unit.

In the morning of March 16, 2019, the CCR started to produce PX raw materials, and the whole process was completed in March 24th and PX output.

Hengli Petrochemical has high standards and strict requirements, and has completed all the work of building and driving at one time, showing the "constant speed" to the whole industry.

At present, the first line of equipment is: 10 million tons of atmospheric and vacuum distillation, 4 million tons of naphtha hydrogenation, 2 million tons of aviation coal hydrogenation, 3 million tons of diesel oil hydrogenation, 3 million 800 thousand tons of wax oil hydrogenation, 3 million 200 thousand tons of residual oil hydrogenation, 6 million 400 thousand tons of continuous reforming, 2 million 250 thousand tons of PX.

The two phase of Hengli petrochemical PX will be put into operation in two months, and the total capacity of PX will reach 4 million 500 thousand tons.

Since 2010, the downstream polyester market has been developing rapidly, PTA has more new capacity, while the pace of PX construction has slowed down, production capacity has been unable to meet demand, and import dependence has been rising year after year.

At present, China's PX relies heavily on imports. In 2018, China's PX imported a total of 15 million 900 thousand tons, with an import dependency of 58.61%. The top three countries in the world were South Korea, Japan and Taiwan's Golden Horse customs area, accounting for 66.83% of imports.

Hengli petrochemical PX project will effectively alleviate domestic PX products' long-term dependence on foreign countries and make great contributions to the healthy development of domestic polyester industry. According to long Zhong's rough calculations, the domestic PX import dependency will be reduced by 16 percentage points after Hengli petrochemical plant runs at full load.

And because of the new domestic PX production capacity increased in 2019, the PX price will continue to decline in the long term, and the PX- naphtha oil price difference will continue to be a downward trend.