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According to the plan, the core unit of the petrochemical complex will include a mixed feed (ethane and naphtha) cracker, which will produce 700,000 to 900,000 tons of ethylene per year, and part of the ethylene will be converted into propylene by translocation. The propylene from the cracker and metathesis conversion unit was used to produce 700,000 tons/year of polypropylene. The combined plant also includes a 600,000 tons/year styrene plant and a 220,000 tons/year polystyrene plant. The aromatics complex will produce benzene and paraxylene with a total capacity of 150,000 tons/year. The joint venture will also produce other ethylene derivatives such as ethylene glycol. In addition, the joint venture's excess capacity of over 300,000 tons/year of ethylene will be sold to local users, such as Qatar Petrochemical, for the expansion of PE capabilities. Excess styrene will also be sold out.
Hunan Petrochemical will be responsible for the project's technology selection, construction, trial operation, plant operation and management, and sales and R&D. Most of the joint venture's products will be sold in China, and some products will be sold in Europe and Africa.
This will be Hunan's first large-scale petrochemical investment overseas. The company established a small joint venture in Qingdao, China, with local companies that produce chlorinated polyethylene.
Qatar Petroleum Corp. (QP) and South Korea’s Hunan Petrochemical Company will jointly build a petrochemical complex with a total investment of US$2.6 billion in Qatar’s Mercedes and Hunan Petrochemical will hold 30% of the shares. QP and its subsidiaries include Qatar Holding Media Industry. Shares 70%. The construction period of the joint venture is from 2006 to 2009 and it is planned to start production in the third quarter of 2009.