Chevron Lummus bags contract for hydrocracking unit in China

Chevron Lummus Global LLC (CLG) announced that Shandong Yulong Petrochemical Co., Ltd. has selected EST, which CLG licenses, for a slurry residue hydrocracking unit in Shandong Province, China. The unit will produce naphtha, diesel fuel and vacuum gas oil once it is complete. With a capacity of 3.0 million metric tons per annum (MMTA), it will be one of the largest in the world.

By selecting the EST technology and technical solutions, Shandong Yulong will be able to achieve the highest conversion from residue to distillate products, and supply a maximum amount of feedstock to its petrochemical production units. Shandong Yulong will also be able to convert a large amount of high sulfur residue (3.0 MMTA) to useful transportation fuels and petrochemical feedstock while removing sulfur and other contaminants.

The project scope includes the technology license, engineering, proprietary reactor internals and catalyst supply. 

Chevron Lummus Global, together with its partner, is able to license a complete suite of residue hydrocracking technologies, including EST, LC-FINING, LC-MAX, LC-SLURRY and LC-LSFO technologies. These world-class technologies offer refiners a wide range of conversion options, including complete conversion of residua to valuable distillate products.

Chevron Lummus Global (CLG) is a joint venture between Chevron U.S.A. Inc. and Lummus Technology, a leading process technology licensor for refining hydroprocessing technologies and alternative source fuels, as well as a global leader in catalyst system supply. 

The Yulong project will be the latest addition to China’s recent wave of petrochemical investments, according to Reuters, which have been led by the private sector and global players such as BASF, ExxonMobil, INEOS, and Saudi Aramco, build complexes in the world’s top petrochemical consumer and importer. 

Shandong Yulong Petrochemical Co. Ltd, is a subsidiary of Nanshan Group.