Chemical Week Apr 10, 2002

BP, Sinopec Break Ground on China Petchem Complex

Shanghai Secco Petrochemical, a 50-30-20 joint venture between BP, Sinopec, and Shanghai Petrochemical, has broken ground on a $2.7-billion petrochemical complex at Caojing, China. The complex is due onstream in 2005, and it will include Chinafs largest ethylene plant with a capacity of 900,000 m.t./year.

Chemical Week@Apr 24, 2002

Lummus Reconfirms China Cracker Award from BP

ABB Lummus Global has officially confirmed that it has been awarded a contract to build a 900,000-m.t./year ethylene plant for Shanghai Secco Petrochemical, a joint venture between BP and Sinopec at Caojing, near Shanghai. The contract covers a small portion of the olefins project, which has a total value of $350 million. The plant will also produce 590,000 m.t./year of propylene. Completion is scheduled for the first half of 2005. Lummus is also supplying technology.


In December 2001 BP, Sinopec and Shanghai Petrochemical Coprporation (SPC) formed a joint venture for the development of an ethylene cracker and derivatives complex in Shanghai, China. SPC is one of the largest petrochemical companies in China, as well as one of the biggest producers of ethylene. The Shanghai Secco Petrochemical Company Ltd (SECCO) will build the complex, expected to go into operation in 2005. In March 2001 the two companies approved an agreement for a joint feasilibity study.

Earlier, in October 1999, BP Amoco and Sinopec signed a framework agreement under which the companies agreed to accelerate the project and to attempt a joint feasibility study report, to negotiate a joint-venture contract and to fulfil other commercial agreements.

The mainland's demand for ethylene, along with its derivative products, continues to grow well beyond the country's manufacturing capability. In 1999, total petrochemical production was estimated to be worth $67 billion. In 2000, Chinese demand for ethylene exceeded seven million tonnes, but domestic production remained at 4.6 million tonnes. In 2010, the demand for ethylene is forecast to reach 12 million tonnes, which would result in a serious supply shortage. This joint venture is designed to satisfy those demands.

The cost of the Caojing, Shanghai project is estimated to be $2.7 billion. In June 2000 the Chinese government's State Development and Planning Commission approved the raising of capacity from 650,000t/yr to 900,000t/yr of naphtha-fed ethylene cracker. The downstream plants are estimated to have a capacity of 600,000t/yr polyethylene; 590,000t/yr propylene; 500,000t/yr aromatics; 500,000t/yr styrene; 300,000t/yr polystyrene; 260,000t/yr acrylonitrile; 250,000t/yr polypropylene; and 150,000t/yr butadiene. Total output is expected to be almost 2.3 million tonnes per year.

Representatives of Shanghai Tian Yuan (Group) Corporation, Shanghai Gaoqiao Petrochemical Corp, Shanghai Chemical Industry Park Development Co Ltd, Paktank Asia Pacific Ltd and Sinopal (a joint venture of Air Liquide and Praxair) have all signed letters of intent to proceed with their development project. The financial arrangements are expected to be completed early in 2002. SECCO will now be tendering for design and construction contracts with the aim of breaking ground in the first half of 2002.

It has been announced that BP are investing $400m in Sinopec ahead of the expansion. This comes after the October 2000 announcement that BP has taken a 2.2% equity stake in Sinopec.

Established in February 2000, Sinopec is the largest petrochemical company in China. Sinopec owns 28 petrochemical companies and eight oil and natural gas companies and has combined assets of $47 billion. The company represents 52% of total Chinese ethylene production capacity, and is seventy-third largest of the top 500 companies in the world.

2003-7-28 Asia Chemical weekly

ABB wins $123m of contracts for EB/SM, PS units in China

ABB announced Friday it has won $123m (Euro110m) of petrochemical contracts from Shanghai Secco Petrochemical Co for its complex in Caojing, China.

The Swiss headquartered engineering group said in a statement that it would provide the technology licence, engineering, and procurement for a
ethylbenzene (EB)/styrene monomer (SM) unit of 500 000 tonne/year capacity, and the engineering and procurement for a 300 000 tonne/year polystyrene (PS) plant.

The units are part of Secco
fs new $2.7bn petrochemical complex in Caojing that is due to start operations in 2005.

In late 2002, ABB signed a $200m deal to provide process technologies, engineering and procurement services for a naphtha cracker and olefins conversion unit at the same complex. In addition, ABB will provide the technology, engineering, and procurement for a butadiene extraction plant.

Shanghai Secco Petrochemical is a joint venture of BP Chemical, Sinopec and Shanghai Petrochemical.

2005/6/30 BP

BP, Sinopec & SPC Celebrate SECCO Completion

BP, Sinopec and Shanghai Petrochemical Company, the three parties in the SECCO joint venture, today celebrated the successful construction and commissioning of the SECCO manufacturing site at a ceremony in Shanghai, following a decade-long collaboration.

The 220-hectare SECCO facility, the largest petrochemical complex in China to date, was built in just 27 months, 3 months ahead of schedule.
Commissioning of SECCO's 900ktpa cracker, in March 2005, took just 10 hours, 45 minutes, a world record.

Today's ceremony was attended by several senior Chinese officials, including Mr. Han Zheng, Mayor of Shanghai and Mr. Chen Liangyu, Communist Party Secretary of Shanghai. Senior Sinopec officials including Mr. Chen Tonghai, General Manager & Chairman of Sinopec, Mr. Wang Tianpu, President, and Mr. Wang Jiming, Vice Chairman, were also present.

Ralph Alexander, CEO of BP's petrochemicals subsidiary, Innovene, which is expected to hold a significant interest in the joint venture, commented, "When SECCO's shareholders first came together, they shared a common vision: to create a truly world-class company serving China's rapidly growing demand for petrochemicals, using the best technology, manufacturing methods and management expertise available. Now, nearly a decade later, that vision has been realised. This is truly one of the most impressive achievements I have witnessed in my 28 years at BP."

Notes to editors:
The SECCO manufacturing site, situated in the Shanghai Chemical Industrial Park, is a $2.7bn joint venture between Sinopec, Shanghai Petrochemical Company Limited and BP.

The site's production capacities are 900ktpa of ethylene, 600ktpa of polyethylene, 250ktpa of polypropylene, 300ktpa of polystyrene and 260ktpa of acrylonitrile. The ethylene cracker, SECCO's core asset, is currently the largest in China as well as one of the largest in the world.

SECCO has a world-class safety record, with zero fatalities during construction out of more than 50 million man hours worked. The site also boasts leading environmental standards.

SECCO's letter of intent was signed in 1996; Shanghai SECCO Petrochemical Company Limited was formed in 2001; construction of the site began in 2002 and was completed on December 30, 2004.

BP's activities in China include production and import of liquefied natural gas (LNG); supplying aviation fuel; importing and marketing liquefied petroleum gas (LPG) ; fuel retailing; lubricants; solar power installations; joint venture chemical plants and the sales of chemicals technology.

Innovene was formed as a wholly owned subsidiary of the BP Group on April 1, 2005. Its major manufacturing sites include Grangemouth in Scotland, Lavera in France, Koln in Germany and Lima, Chocolate Bayou and Green Lake in erathe U.S.

As well as its participation in the SECCO joint venture, Innovene sells various products in China imported from its plants in the U.S. and Europe, including polyethylene, polypropylene, acrylonitrile, alpha-olefins and polybutenes. Innovene also licenses its world-class polyethylene and polypropylene technologies in the country.

The headquarters of Innovene's Asia operations is also in Shanghai.