Sinopec Shanghai Petrochemical has issued a tender notice for the first construction package of Engineering, Procurement and Construction (EPC) work under its “Comprehensive Technical Upgrade Project” at its existing Jinshan District site in Shanghai, according to reports. Bid opening is scheduled for October 8, with the overall project investment reported at approximately RMB 21.3 billion.
The upgrade project is centered on dismantling an aging 700,000 tonne per year ethylene unit and building a new 1.2 million tonne per year ethylene unit at the same site, according to reports. Alongside this, nine major units are planned, including a 400,000 tonne per year polyethylene unit (FDPE, convertible to low-density polyethylene or ethylene vinyl acetate), a 200,000 tonne per year butadiene extraction unit, a 400,000 tonne per year aromatics extraction unit, a 300,000 tonne per year vinyl acetate unit, and a 100,000 tonne per year electronic-grade carbonate ester unit, it was reported. Primary crude processing capacity is expected to remain at the existing 14 million tonnes per year, with the project proceeding through reconfiguration within the existing Jinshan site rather than new land acquisition, according to reports.
The estimated value of the first construction package under tender is RMB 5.634 billion, with a construction period of 822 days, it was reported. The overall project investment is reported at approximately RMB 21.3 billion, with financing reportedly structured as 70% bank loans and 30% self-funded capital.
China’s refining and petrochemical industry has reportedly continued to pursue expanded high-value-added product mixes through upgrading of aging facilities, and this project is reported to be a continuation of that trend.
While this project is at the tender stage rather than a signed contract, it is cited as an example of large Chinese refining and petrochemical companies continuing substantial investment to convert aging facilities into advanced, high-value-added units. Notably, the inclusion of a precision chemical unit for electronic-grade carbonate esters, linked to the semiconductor and battery materials industries, is seen as reflecting a recent trend of China’s petrochemical industry expanding beyond commodity products into higher-value fine chemical segments. Which contractor is awarded the bid following the October bid opening is expected to draw attention from both domestic and international EPC industries. Additionally, this type of large-scale reconfiguration-based upgrade project, which utilizes existing infrastructure without new land acquisition, aligns with a recent trend in refining and petrochemical investment that emphasizes capital efficiency.
The result of the first-package bid opening scheduled for October 8 and the winning contractor are the first items to confirm. Also worth monitoring are the timing of subsequent tender notices for the remaining equipment packages, the overall construction schedule, and how much the share of high-value-added products actually increases following completion.