Sinopec to commence construction of US$2.8 bln naphtha cracker

03-Nov-06

As part of China's massive expansion in the petrochemicals sector to reduce it dependence on imports, Sinopec Corp is to start construction of a one mln tpa naphtha cracker in eastern Ningbo city at an investment estimated at US$2.8 billion. The cracker is estimated to be complete by the end of 2009. Sinopec plans to source feedstock locally in order to minimise the impact on the regional naphtha market. This will require expansion in crude refining capacity, which is supported by expansion work at Zhenhai to 460,000 bpd over the same period. Capacity addition will be coupled with retooling of the refinery to favour high output of feedstock, particularly naphtha.