BASF, Sinopec to build new steam cracker in China

30 Oct 2018 ASIA ENERGY & UTILITIES

BASF has signed a memorandum of understanding (MoU) with Sinopec to construct an additional steam cracker in Nanjing, China; and expand their existing joint venture, BASF-YPC Company.

The new agreement is expected to strengthen their partnership in upstream and downstream chemical production in China. A joint pre-feasbility study will be completed by the end of 2018.

Furthermore, the two firms will jointly explore new business opportunities in the Chinese battery materials market.

As part of the MoU, BASF-YPC will have 50% stake in second steam cracker with a capacity of 1,000,000 metric tons of ethylene per year, while remaining 50% interest will be held by SINOPEC Yangtzi Petrochemical (YPC).

Both BASF-YPC and YPC will have access to all of the products of the new steam cracker to develop their downstream product portfolios.

The basic chemicals provided by the new steam cracker enable BASF and Sinopec to expand production capacity at BASF-YPC, their existing integrated joint venture “Verbund” site in Nanjing.

At a Verbund site, plants are interconnected in order to utilize products, by-products, and energy in the most efficient way, to save costs and minimize environmental impact.

BASF chairman of the executive board of directors Martin Brudermueller said: “This additional investment into a new steam cracker and the expansion of our BASF-YPC joint venture in Nanjing underline the strong partnership between Sinopec and BASF and the commitment to our customers in China.”

Sinopec chairman of the board and the president Dai Hou-Liang said: “With the strengthened cooperation between Sinopec and BASF, we will provide high-quality chemicals that can enhance quality of life for the general consumers and add oil to better living. We aim to create further value by extending this partnership.”

BASF-YPC was founded in 2000 with a total investment of nearly $5.2bn. The integrated petrochemical site produces about three million tons of high-quality chemicals and polymers for the Chinese market annually.

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Image: BASF, Sinopec sign MoU to expand cooperation in China. Photo: Courtesy of BASF SE.

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