BASF Delays Ethylene Expansion and MDI Project in China
Recently, a senior official of BASF told Chinese media that the company will delay two proposed projects - the jv ethylene expansion project in Nanjing, Jiangsu Province and the greenfield MDI in Chongqing.
According to the company, because the global economic crisis and the weak market demand, BASF will delay the two proposed projects, but the new schedule for these projects is not disclosed.
The jv ethylene expansion project is operated by YPC-BASF, which was planned to expand ethylene capacity to 750,000 ton/year from 600,000 ton/year by H2 2009 or H1 2010.
The proposed MDI project is located in Chongqing Chemical Industry Park (CCIP) Chongqing, which has capacity of 400 kt/a crude MDI to meet growing demand for this product in China. BASF has signed a MOU for the MDI project in Jun. 2007 with Chongqing Chemical and Pharmaceutical Holding (Group) Company and local authorities. And the project was expected to start up in 2012.
For the Chongqing MDI project, BASF also faced with the argument about the environment issues.
On Jan. 2009, BASF got environmental approval from China’s Ministry of Environment Protection (MEP) for its proposed MDI project in Chongqing, with total investment of USD 1.18 billion, the project includes 400,000 t/a nitrobenzene, 300,000 t/a aniline, 400,000 t/a crude MDI and refining facility, 20,000 t/a MDI pre-polymer, storage facility and other utilities. According the BASF, the MDI project will use the most advanced technologies in environmental protection and met China's standard for discharge of pollutants.
But after the environmental approval disclosed, some Medias and environment protection organizations argued that if there is a huge risk of water resources safety as the MDI project may impact the Yangtze River and the Three Gorges Reservoir area.
It is reported that BASF will suspend expanding capacity on a large scale of a petrochemical project in Nanjing, China. The Chairman, Mr He Binjie, said that they decided to suspend the expansion scheme of ethylene cracking plant in Nanjing, considering there would be no rebound in the global chemical market this year.
The executive director of BASF, Pu Mule who is responsible for the East Asian market stressed that BASF has not given up plans to expand capacity, but has only decided to delay the pace of investment due to the current market conditions and will review the expansion as soon as the situation improves.
The project is a joint venture in Nanjing with China Petrochemicals entailing an investment of US $900 million aimed at expanding the ethylene cracker capacity from current 600,000 tons per year to 750,000 tons.
According to the company, because the global economic crisis and the weak market demand, BASF will delay the two proposed projects, but the new schedule for these projects is not disclosed.
The jv ethylene expansion project is operated by YPC-BASF, which was planned to expand ethylene capacity to 750,000 ton/year from 600,000 ton/year by H2 2009 or H1 2010.
The proposed MDI project is located in Chongqing Chemical Industry Park (CCIP) Chongqing, which has capacity of 400 kt/a crude MDI to meet growing demand for this product in China. BASF has signed a MOU for the MDI project in Jun. 2007 with Chongqing Chemical and Pharmaceutical Holding (Group) Company and local authorities. And the project was expected to start up in 2012.
For the Chongqing MDI project, BASF also faced with the argument about the environment issues.
On Jan. 2009, BASF got environmental approval from China’s Ministry of Environment Protection (MEP) for its proposed MDI project in Chongqing, with total investment of USD 1.18 billion, the project includes 400,000 t/a nitrobenzene, 300,000 t/a aniline, 400,000 t/a crude MDI and refining facility, 20,000 t/a MDI pre-polymer, storage facility and other utilities. According the BASF, the MDI project will use the most advanced technologies in environmental protection and met China's standard for discharge of pollutants.
But after the environmental approval disclosed, some Medias and environment protection organizations argued that if there is a huge risk of water resources safety as the MDI project may impact the Yangtze River and the Three Gorges Reservoir area.
It is reported that BASF will suspend expanding capacity on a large scale of a petrochemical project in Nanjing, China. The Chairman, Mr He Binjie, said that they decided to suspend the expansion scheme of ethylene cracking plant in Nanjing, considering there would be no rebound in the global chemical market this year.
The executive director of BASF, Pu Mule who is responsible for the East Asian market stressed that BASF has not given up plans to expand capacity, but has only decided to delay the pace of investment due to the current market conditions and will review the expansion as soon as the situation improves.
The project is a joint venture in Nanjing with China Petrochemicals entailing an investment of US $900 million aimed at expanding the ethylene cracker capacity from current 600,000 tons per year to 750,000 tons.
quoted from: New Kaznak
