Shanghai SECCO 900ktpa Ethylene Project to Put Into Commercial Operation

On June 29, 2005, Shanghai SECCO Petrochemical Company Limited announced that Shanghai SECCO 900ktpa Ethylene Project (SSE Project) is put into commercial operation, indicating that SECCO Project has been completed and put into production through three years of project construction and production trial operation.

SECCO Project Commercial Operation Meeting was ceremoniously held in Shanghai Chemical Industry Park on the morning of June 29. Mr. Huang Ju, Member of Standing Committee of Political Bureau of the Central Committee of the Communist Party of China & Vice Premier of the State Council, Mr. Sheng Huaren, Secretary-General & Vice Chairman of Standing Committee of the National People?s Congress, and Mr. Chen Jinhua, Former Vice Chairman of the Chinese People?s Political Consultative Conference sent congratulatory letters to the company. Mr. Chen Liangyu, Member of Political Bureau of the Central Committee of the Communist Party of China & Secretary of Shanghai Municipal Committee of the Communist Party of China, Mr. Han Zheng, Mayor of Shanghai, Mr. Gong Xueping, Director of Standing Committee of the Shanghai People's Congress, Mr. Jiang Yiren, Chairman of the Shanghai People?s Political Consultative Conference, Mr. Chen Tonghai, General Manager of China Petroleum & Chemical Group and Chairman of China Petroleum & Chemical Corporation(?Sinopec?), Mr. Wang Jiming, Vice Chairman of Sinopec, Mr. Wang Tianpu, President of Sinopec, Mr. Byron Grote, Executive Director & CFO of BP, and Mr. Alexander, Executive Vice President of BP & CEO of BP Group Petrochemicals Subsidiary INNOVENE attended the meeting.

Mr. Huang Ju said in the congratulatory letter that SECCO Project Commercial Operation is another significant achievement in opening of China petrochemical industry. It has a great importance in improving the level of technological management and the international competitiveness of the petrochemical industry in our country, and in promoting the economy development of Shanghai and its circumjacent regions. He hopes that Sinopec would take the important idea of ?Three Representatives? as guideline to earnestly carry out and implement the view of scientific development, combine the advanced technology and managerial expertise with the practice of the enterprise and do a good job in ensuring the safe, steady and long-cycled operation, and would make persistent efforts, development and innovation to turn Shanghai SECCO into a showcase in Sino-foreign joint venture and cooperation.

Mr. Han Zheng, Mayor of Shanghai said that SECCO Project Commercial Operation has effectively promoted the construction of all kinds of main projects within SCIP, preliminarily realized the integrated operation of SCIP, brought strong energy to SCIP, which is known as ?the new wings for taking-off of Shanghai industry?, and will play a driving role in enlarging invitation of businessmen and attraction of investments, developing high technology and coordinating the development of Shanghai industry.

Mr. Chen Tonghai, General Manager of Sinopec Group & Chairman of Sinopec, expressed that Sinopec seizes the favorable market opportunity to develop the core business of chemical industry and completes Shanghai SECCO ethylene project on schedule with advanced technology. The successful construction of the project has great significance in upgrading China?s petrochemical international competition, and will make due contributions to continuous, rapid, coordinated and healthy development of the economy in Shanghai and East China region.

Mr. Alexander, Executive Vice President of BP & CEO of INNOVENE said that it only takes over 3 years for SECCO Project from the commencement to commercial operation, which creates a miracle in the history of construction of petrochemical industry throughout the world. The project is well controlled at all times in terms of safety, quality, cost and schedule. SECCO Project is one of the most successful investment projects of BP, which is also the pride of BP.

Shanghai SECCO Petrochemical Company Limited is a Sino-British joint venture invested in by China Petroleum & chemical Corporation (?Sinopec?), Sinopec Shanghai Petrochemical Company Limited (?SPC?) and BP Chemicals East China Investments Limited (?BP?) with total investment of USD 2.748 billion in the proportion of 30:20:50. Located in Shanghai Chemical Industry Park, the company comprises 8 large-sized advanced production plants, including 900ktpa ethylene cracker which is the core plant in the whole complex, 600ktpa polyethylene, 250ktpa polypropylene and 300ktpa polystyrene.

SECCO Project is currently the largest ethylene plant in China as well as one of the largest in the world in terms of single-train yield  It mainly adopts the currently world-advanced process technology, and it is expected that 2.28 million tons of high-quality, high-specification and wide-coverage petrochemical products will be produced each year. The product sales are based on the domestic market and are to substitute for the imported products as well as mainly meet the demand of domestic market for petrochemical products; part of products are to enter the international market.

SECCO Project is a national key project, and has been always attached with highly importance and concern by the governments of China and U.K., the relevant authorities of the State and Shanghai Municipality. The letter of intent for joint venture was signed in Britain in Oct. 1996; the Project Proposal and project Feasibility Study Report were approved by the Chinese government respectively in October 1999 and August 2001; the joint-venture contract was approved by the State Ministry of Commerce of P.R.C in September 2001; Shanghai SECCO Petrochemical Company Limited was formally founded in November 2001; on March 28, 2002, the construction of SECCO Project was formally commenced. The overall mechanical completion of the project was achieved on December 30, 2004; the 900ktpa ethylene plant of Shanghai SECCO was successful commissioned in its first attempt on March 18, 2005, and only took 10 hours and 45 minutes from the formal feed-in to the production of on-specification products, thus making the world fastest record in terms of commissioning ethylene plant in the fist attempt.

Ethylene is one of the important signs for evaluating the development level of petrochemical industry of a country or a region, as well as the core of petrochemical industry. Petrochemical industry is one of the pillar industries in the national economy of China, while the ethylene and its derivatives hold the balance of development of petrochemical industry.


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