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Fujian Fuhai Chuangyuan (former Tenglong Aromatic Hydrocarbons) intends to restart the closure of a three-year petrochemical plant in Quzhou Gulei

Apr 04, 2018

Fujian Fuhai Creation Petrochemical Co., Ltd. plans to restart the Gulei petrochemical plant in Zhangzhou, Fujian Province, as early as June, after the plant had been discontinued for three years.

Fuhai was originally known as Tenglong Aromatic Hydrocarbons. The factory mainly produces polyester fibers. Previously due to two fires in less than two years, causing safety concerns and requiring new funds for repairs, the plant has been shut down since April 2015.

Before the closure, the plant in Zhangzhou, Fujian Province had a condensate separation plant that processed 90,000 barrels per day, a hydrocracking unit that processed 3.2 million tons per year, and two paraxylene plants that processed 800,000 tons per year. .

The company hopes to restart the factory in June or July but it has to wait for approval from the local government.

Fuhua Group is the main new shareholder of this project.

At present, 90% of the shares of Fuhai Chuang belong to Fuhua Gulei Petrochemical Company and Tenglong Aromatic Co., Ltd. holds a 10% stake. The latter is one of Taiwan's Xianglu Group companies.

Fujian Fuhua Gulei Petrochemical Co., Ltd., a joint venture funded by Fuhua Group and Bozhou Jiulongjiang Group, reorganized the Tenglong Xianglu Project and established Fujian Fuhai Chuangye Chemical Co., Ltd. with the original Taiwanese shareholders. It was incorporated on October 27, 2017.

Sources said that the post-disaster repair work for the fire was almost completed and the daily processing capacity of the separation device had been increased to 110,000 barrels.

For the resumption of the plant, Fuhai plans to purchase condensate, fuel oil and xylene.

“Drongo Aromatic is buying condensate and fuel oil in the market, but it is unclear whether the new management has enough experience to operate the plant,” a source said.

Tenglong Aromatic Refinery Separation Plant has been mainly used to process Iranian South Pars condensate, but Iran has reduced exports since the end of last year, because the country ended the sale of excess inventory, and the country’s new separation plant is also in production.

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