The Four Major Private Refinery Leaders "Initial Contest": Who Has Stolen The "First Pot Of Gold", Who Is Still Desperately "Throwing Money"?

Recently, a number of petrochemical enterprises announced their own performance in the first three quarters, in addition to three barrels of oil. The performance of private refinery enterprises represents the actual benefits of the current refining and chemical projects. Besides, Yantai, Guangdong and Guangdong Zhanjiang one south one north refinery project has been publicized again, causing many concerns.

Hengli petrochemical

On the evening of October 23rd, Hengli Petrochemical announced the three quarterly report in 2019. In the first three quarters, the company achieved operating income of 76 billion 329 million yuan, a sharp increase of 74.14% over the same period last year, and realized the net profit of shareholders belonging to the listed company by 6 billion 817 million yuan, up 86.64% from the same period last year.

The cash flow of Hengli petrochemical company has also improved significantly. During the reporting period, the net operating cash flow of the company was as high as 26 billion 624 million yuan, an increase of 368.70% over the same period last year.

In May of this year, Hengli Petrochemical Co., Ltd., which was wholly owned by Hengli Petrochemical Company, took the lead in the 20 million ton / year refining and chemical integration project in the industry and entered the performance contribution period. It benefited from the continuous, stable and efficient operation after the refinery was put into operation. The refinery assets became the main driving force to promote the rapid growth and profitability of the listed companies in the two or three quarter. In addition, the average price difference of domestic PTA industry has expanded compared with the same period last year, helping the company's profit growth.

Dalian Hengli petrochemical refining and chemical integration project

In the past few years, textile industry has been making great progress in the petrochemical industry.

Statistics show that Hengli Group Co., Ltd. was founded in 1994. It is the largest weaving enterprise in the world and the world's largest production base of super bright light and industrial yarn. It has the largest PTA factory in the world, with the largest number of enterprises in the world. The company ranks first in the competitiveness of China's chemical fiber industry, ranking the five hundred largest in the world for Jiangsu's super large private enterprises.

In May this year, Hengli Petrochemical Industrial Park's 20 million ton / year refining and chemical integration project reached its total output. This year, the industrial park can achieve an annual output value of 180 billion yuan.

Hengli official website released on September 25th, Hengli Group Chairman Chen Jianhua organized the "Hengli 1 million 500 thousand tons / year ethylene project tackling hard meeting", called for 35 days to ensure that the ethylene project in October 30th completed and put into operation.

Hengli Petrochemical is currently concentrating on accelerating the construction of 1 million 500 thousand tons of ethylene (including 1 million 800 thousand tons of ethylene glycol, 720 thousand tons of styrene, 423 thousand tons of polypropylene, 400 thousand tons of high-density polyethylene, 140 thousand tons butadiene, and other domestic scarce, high value-added chemical products), 5 million tons PTA and other major projects, of which ethylene projects and 2 million 500 thousand tons / year PTA-4 line project is expected to be put into production next month.

Hengli 1 million 500 thousand ton / year ethylene project construction site

In addition, 2 million 500 thousand tons / year PTA-5 project, 1 million 350 thousand ton / year multi-functional high quality textile new material project and 200 thousand tons / year high performance automotive industrial yarn technical transformation project will also be put into operation next year. All of the above projects are in full swing. Hengli Petrochemical is expected to achieve output value of 300 billion yuan and profits and taxes of 65 billion yuan.

Hengli Petrochemical also vigorously expanded the operating space. In October 22nd, Hengli Petrochemical Company's wholly-owned subsidiary company Hengli refinery 3 aviation fuel airworthiness symposium, the Chinese Civil Aviation Authority issued to the Hengli refinery the "technical standard approval project" (CTSOA) and the "civil aviation oil testing unit approval letter". The official approval of Hengli refining and chemical production 3 jet fuel is approved through airworthiness certification, and can be put into commercial use.

This marks Hengli Petrochemical to acquire the first market access permit for private enterprises, and become the first private refinery in China to have aviation oil production and factory qualification.

Rongsheng petrochemical

In October 28, 2019, Rongsheng Petrochemical released the three quarterly report in 2019: the sales revenue reached 59 billion 658 million yuan, up from -5.36%, and realized net profit of 1 billion 846 million yuan, up from +0.92%.

As a controlling shareholder of Zhejiang petrochemical, the largest petrochemical company in China, the expansion of Rongsheng Petrochemical has attracted considerable attention in recent years.

The scale of Zhejiang Petrochemical far exceeds that of the largest refinery, Sinopec, Zhenhai Refining and chemical industry in China. Its 40 million ton / year crude processing capacity can reach the top 5 in the world.

In 2017, Rongsheng Petrochemical acquired 51% stake in Zhejiang petrochemical, a controlling shareholder holding Rongsheng holdings, and this part of the assets were formally incorporated into the listed company.

Reviewing Rongsheng's history of nearly 20 years, its development path has been advancing steadily towards the upstream. From the beginning of the textile to polyester yarn, to PTA and PX (p-xylene), and finally to the current refining and chemical integration, Rongsheng has made this strategy almost the best.

Zhejiang Petrochemical is the company's implementation of the "crude -PX-PTA- polyester filament" industrial chain layout, planning and construction of 40 million tons / year refining and chemical integration project (divided into two phases), each phase is 20 million tons / year refining, 4 million tons / year PX, 1 million 400 thousand tons / year ethylene, 260 thousand tons of PC, six standard oil products, etc. in May 21, 2019, 40 million tons / year refining and chemical integration project (phase I) has completed construction works, equipment installation and commissioning and other preliminary work, the relevant equipment has been put into operation conditions, the first batch of equipment (atmospheric and vacuum distillation and related public utilities device) put into operation.

It is expected that the whole process will be completed at the end of the year. In September 20, 2019, the company replied to the two feedback opinions on the application documents of the non-public issuance of shares. The company intends to raise funds from non-public offering stocks to no more than 8 billion yuan, which is used for the fixed assets investment of the two phase of the Zhejiang Petrochemical's 40 million ton / year refining and chemical integration project. Rongsheng Petrochemical has passed the most difficult time, ushered in the dawn of victory.

Heng Yi petrochemical

In the evening of October 17th, Hengyi petrochemical, the first to disclose its three quarter results, released the third quarter report in 2019. The first three quarters of the company achieved operating income of 62 billion 205 million yuan, and realized a net profit of 2 billion 214 million yuan attributable to shareholders of listed companies.

Heng Yi Petrochemical Holdings Co., Ltd. Hengyi Industrial (Brunei) Co., Ltd. invested in the construction of "PMB petrochemical project" in the large island of Brunei Dulu Saran, which officially produced qualified products in September 6th. In September 18th, Heng Yi Industrial and Brunei Shell sales company signed an oil sales agreement and renewed the crude oil supply agreement with Brunei Shell oil company. It is expected to contribute to profits in the fourth quarter, and it is estimated that the project will contribute 2 months' full profit in the whole year. Taking into account the strong profitability of the project, Hengyi profits will be further improved in 2019.

The total investment in the first phase of the project is US $3 billion 445 million, which is not only the flagship project of "one belt and one road" jointly built by Brunei and Brunei, but also the largest foreign investment by Brunei to date. After the completion of the project, the annual crude oil processing capacity will reach 8 million tons. The main products include benzene, gasoline, diesel, aviation coal and so on.

Brunei refining and chemical project is an important step for Hengyi Petrochemical to achieve the international layout of production capacity. Qiu Jianlin, the real controller of Hengyi petrochemical, once said: "the coordinated development of domestic and foreign and upstream and downstream is the main strategy of Hengyi petrochemical company. If the whole chain can be more evenly arranged, it can not only smooth the cycle of the industry, but also produce synergies between the upstream and downstream products. By improving the integrated layout of petrochemical and chemical fiber industry chain, Hengyi Petrochemical will further enhance its ability to resist the risk of cyclical fluctuations.

Oriental Rainbow

In October 15th, Dongsheng Hong announced the first three quarters of 2019: net profit amounted to 1 billion 189 million yuan, an increase of 52.23% over the same period last year.

In the evening of March 8th this year, Jiangsu Oriental Sheng Hong Limited by Share Ltd (hereinafter referred to as "Oriental Sheng Hong") announced that the wholly owned subsidiary of Jiangsu Sheng Hong Petrochemical Industry Development Co., Ltd. ("petrochemical industry") and Sheng Hong (Suzhou) Group Co., Ltd. (Sheng Hong Suzhou), Sheng Hong Petrochemical Group Co., Ltd. (Sheng Hong petrochemical) signed the "equity purchase agreement" in Wujiang District of Suzhou, and the petrochemical industry acquired the 100% equity interest of Sheng Hong refining and Petrochemical Co., Ltd., which was jointly held by Sheng Hong Suzhou and Sheng Hong Petrochemical Company in cash.

Through this transaction, Dongsheng Hong will set up the integration project of Sheng Hong refining and refining on the basis of the existing main industry of civilian polyester filament, extending the company's industrial chain from chemical fiber to the whole industrial chain of refining and petrochemical industry. Sheng Hong refining and chemical integration project can meet the PTA production demand for p-xylene (PX), ethylene glycol (MEG) and produce gasoline, diesel and aviation kerosene and other products.

After the project is completed and put into operation, the listed company will form a complete industrial chain of "crude oil refining -PX/ ethylene glycol -PTA- polyester chemical fiber", so as to achieve vertical integration along the upstream of the industrial chain, and further enhance the profitability and core competitiveness of listed companies.

Sheng Hong refining and chemical (Lianyungang) Co., Ltd. (Sheng Hong refining and chemical) is the main body of "Sheng Hong 16 million tons / year refining and chemical integration project" ("Sheng Hong refining and chemical integration project"). Sheng Hong refining and chemical integration project is listed as a major project in Jiangsu Province. It started construction in December 14, 2018, and is now in the initial stage of construction, and is expected to be completed and commissioned in 2021.

Sheng Hong refining and chemical integration key words:

1, 16 million tons / year: currently the largest single unit in China.

2, 350x2 million tons / year: currently the largest domestic process technology continuous reforming unit in China.

3, 4 billion 950 million yuan: project environmental protection investment totaled about 4 billion 950 million yuan, accounting for 6.4% of the total investment of the project, and reached the advanced level of the same industry in the application of environmental protection technology, energy saving and consumption reduction and clean production water.

4, aromatics crystallization method: the aromatics unit adopts the first two phase heavy grit PX crystallization technology introduced in China, and does not need the desorbent recovery system. The energy consumption is about 20% lower than that of the adsorption process, and the power cost is about 25%.

Dongsheng Hong's main competitors are Hengli, Xin Fengming, Tong Kun, Hengyi petrochemical, Rongsheng petrochemical and so on. The six leading enterprises in the polyester filament industry have different positioning and differentiated competition. The Sheng Hong Group's refinery and petrochemical project has been successfully completed, and will become the third major private refinery project after Zhejiang Petrochemical and Hengli refining.

The construction scale of Sheng Hong refining and chemical integration project is 16 million ton / year oil refining, 2 million 800 thousand ton / year PX, 1 million 100 thousand ton / year ethylene, including land project, supporting terminal project and supporting project. The capacity of 16 million tons / year is a single scale, so the project is expected to become the largest energy refinery in China at present. The 2 million 800 thousand tons / year PX capacity will solve the PTA raw material supply problem of Honggang Petrochemical Company, which is also one of the core reasons for several domestic polyester leading companies to enter the refining and petrochemical industry.

The two major projects in North and South are again publicized.

Yantai's natural resources and Planning Bureau website again appeared on the website of Yulong Island, and its publicity was announced on the 21-29 day of October. Earlier, the EIA report has revealed that the park plans to integrate Yulong Island refining and chemical integration project as a model for the transformation of old and new energy and industrial structure in Shandong Province, so as to promote the integration of Shandong's 1.2 billion tons of industrial production, and to replace 25 million tons of production capacity in the near future according to the 1:1.25 ratio.

The report shows that by 2025, planning for the 20 million ton / year refining and chemical integration project and the light hydrocarbon comprehensive utilization project, namely, the 1 million ton / year ethane alkene project, the marine chemical integration project, the high-end petrochemical and new material industry area, the public utilities and other infrastructure construction, will reach the high starting point for the development of the industrial park; by 2030, the planning will add 20 million tons / year integrated project of refining and chemical industry, add a set of 1 million ton / year ethane olefin project and the high-end manufacturing gathering area, achieve the purpose of the industrial park's growth and development; in 2035, plan 20 million tons / year of refining and chemical integration project separately, further improve the upstream and downstream industry chain, and achieve the Industrial Park improvement.

In October 12th, the Zhanjiang economic and Technological Development Zone Development and Reform Bureau and the China Merchants Promotion Bureau also issued the "Zhanjiang East Island Petrochemical Industrial Park Industrial Development Plan" draft, the public notice time is October 12, 2019 to November 10, 2019, a total of 30 days.

Its development goal is to form a modern petrochemical industry and deep processing system with 25 million tons of oil refining, 3 million 500 thousand ton of ethylene and 2 million ton aromatics, downstream matching high-end high-end fine chemicals and demand oriented terminal products by 2030. It has become an internationally renowned New gathering area for petrochemical industry and a new demonstration area for China's chemical industry to further open to the outside world.

Taking into account market demand and resource advantages, the State Council promoted the development of industrial agglomeration in the second half of 2016, and began to vigorously develop the integration project of refining and chemical industry. At present, the integrated production capacity of refinery and petrochemical plants has been 20 million tons / year, Zhejiang Petrochemical 20 million tons / year, and subsequent Hengyi 8 million tons / year, Sheng Hong 16 million tons / year and so on. These have greatly increased the impact of traditional refining.

At present, the distribution of Chinese refineries has two characteristics: first, relying on oil fields; second, building on the coast, with the advantages of ports and wharves, the construction of refineries along the coast ensures the supply of raw materials and reduces operating costs. The publicity projects in Yantai and Zhanjiang are built along the coast. In the future, with the help of policy, the refining and petrochemical integration, large-scale and base level of China's refining industry will be further improved, but at the same time, it means that the contradiction between supply and demand will further increase, and the intensified competition in the domestic market is inevitable.

2019 is the first year of commercial operation of China's refining and chemical integration project. Refining and chemical projects is an important step for chemical fiber giants to achieve international production capacity. With the gradual operation of refinery and petrochemical projects, the business will extend from the existing middle and downstream industries such as "PTA, polyester filament, polyester staple, polyester chip, polyester chip and CPL" to the upstream "PX, benzene and refining" links, so as to realize the balanced development mode from "crude oil refining to polyester and nylon double chain", which is conducive to the global layout of enterprises, enhancing their continuous profitability and enhancing their core competitiveness.