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In May 2010, CNPC set up the plan for gasoline upgrade, requiring all the gasoline products to meet National IV standard by the end of 2013, and meet National V standard in the near future. In response to the requirement, all the refining and petrochemical enterprises affiliated to CNPC took measures to revamp their equipment and update the technologies to produce high-quality oil products with lower sulfur contents and higher fuel efficiency.
   Sparing no efforts in oil products upgrading
On January 1, 2010, all of CNPC’s motor gasoline products and 60% of the motor diesel products reached National-III standard. In 2010, 74.5% of our gasoline was of high-grade, an increase of 12.4% year on year. This had helped us meet the fuel demand of Shanghai World Expo and Guangzhou Asian Games of the year. In 2011, all our motor gasoline and diesel products reached National-III standard, with some reaching National-IV standard. High-grade gasoline in 2011 accounted for 88.2% of our total gasoline production, an increase of 13.4% year on year. In 2012, the proportion of high-grade gasoline production hit 92.3%, among which, production of No.97 gasoline increased by 34% year on year.
In 2013, CNPC moved to a fast track its oil products upgrading, with significant headway seen in all its refining and petrochemical enterprises. It is expected that all our affiliated refineries will be capable of delivering National-IV motor gasoline by January 2014:
Dalian Petrochemical

In May, Dalian Petrochemical completed and put into operation the 2.25Mt/a FCC gasoline hydrodesulphurization plant and the 1Mt/a light gasoline etherification plant, being capable of blending and processing V-type gasoline on a large scale. This is CNPC’s first production plant designed and built strictly in accordance with standards for V-type gasoline. Dalian Petrochemical now boasts a productivity of National-V gasoline for 4 million tons per year, and has already started delivery to cities such as Beijing and Shanghai. By September 15, 2013, the company has supplied 45,000 tons of No.92 and No.95 Shanghai-V gasoline to Shanghai. Currently the preparation work is being carried out for the diesel upgrading project, and a set of 2Mt/a diesel hydrogenation plant is expected to be installed in 2014, to expand the production capacity of National-V diesel.

Dagang Petrochemical

On September 29, Dagang Petrochemical produced its first tank of National-IV gasoline of more than 3,000 tons. Since October 1, National-IV standard has been applied to all the gasoline produced by the company.

Karamay Petrochemical

On October 1, Karamay Petrochemical produced 4,500 tons of No.93 motor gasoline which met National-IV standard.

The company is planning to put into operation its 400Kt/a FCC gasoline desulfurization plant upgrading project. By then, all the motor gasoline products of Karamay Petrochemical will reach National-IV standard.

Fushun Petrochemical

On October 8, the 1.2Mt/a selective gasoline hydrogenation plant of Fushun Petrochemical accomplished mid-term delivery. After completion of the plant, Fushun Petrochemical will fully implement the National-IV standard, to produce gasoline blending components up to National-IV standard, meanwhile ready for upgrade from National-IV to National-V level.

Urumqi Petrochemical

On October 10, Urumqi Petrochemical began to produce No.93 National-IV motor gasoline. By October 20, 13,910 tons of National-IV gasoline was produced by the company.

Lanzhou Petrochemical

By October 16, Lanzhou Petrochemical had accumulatively blended and produced 110,300 tons of National-IV gasoline, indicating that all the gasoline products of Lanzhou Petrochemical reached National-IV standard.

Jilin Petrochemical

On October 20, Jilin Petrochemical produced its first tank of motor gasoline up to National-IV standard ahead of schedule, and began to supply high-grade gasoline to the market.

North China Petrochemical

On October 20, North China Petrochemical produced its first tank of No.93 gasoline of 6,685 tons, which were proved to meet up with National-IV standard. By the end of the month, the company has produced more than 14,000 tons of National-IV gasoline.

Harbin Petrochemical

On October 21, Harbin Petrochemical started up a new 900Kt/a gasoline refining plant, to upgrade the gasoline products to National-IV level.

Ningxia Petrochemical

On October 25, CNPC’s first GARDES gasoline hydrogenation technology package with independent intellectual property
right was put into use in the 1.2Mt/a gasoline hydrogenation plant at Ningxia Petrochemical, which reduced sulfur content in the gasoline from 80mg/kg to 10mg/kg, meeting the National-V standard. On November 27, the flue gas desulfurization project of the 2.6Mt/a heavy oil catalytic unit accomplished mid-term delivery.

Liaoyang Petrochemical

On October 30, the first batch of 1,300 tons of No.95 Beijing-V gasoline, produced by Liaoyang Petrochemical, arrived in Beijing. Besides production capacity of Beijing-V motor diesel, Liaoyang Petrochemical can produce both gasoline and diesel products that meet Beijing-V standard.

Yumen Refining Company

On November 12, Yumen Refining Company’s 400Kt/a FCC gasoline hydrodesulphurization plant became operational, producing National-IV motor gasoline. The company is planning to upgrade its facilities to produce National-V gasoline in the near future.
   Promoting independent technology R&D and design
In order to lower the cost, CNPC issued documents in 2011 to give priority to domestic and independently developed technologies in refining projects. We joined hands with China University of Petroleum (Beijing) to develop the DSO and GARDES technologies of FCC gasoline hydrogenation to replace technologies introduced from abroad, and accomplished the technical package design and engineering design independently. As a result, CNPC has domesticated the FCC gasoline hydrodesulphurization technology.

The DSO and GARDES technologies of FCC gasoline hydrogenation solved the problems such as easy-coking of reactors, short operation period of plants, and high loss of octane numbers. The main technical and economic indicators are satisfactory, with some even better than the introduced foreign technology. These two technologies have helped us shorten

the construction period, reduce project investment, and gain competitiveness in the refining & chemical sector. By November 20, CNPC has accomplished oil products upgrading task in 13 plants thanks to independently developed technologies including DSO and GARDES for FCC gasoline hydrogenation.

Comparison of National-III to National-V oil products

The sulfur content declines from 150ppm to 50ppm as gasoline quality is upgraded from National-III to National-IV, and further declines to 10ppm from National-IV to National-V. The sulfur content declines from 350ppm to 50ppm as diesel quality is upgraded from National-III to National-IV, and further declines to 10ppm from National-IV to National-V.

Lowering sulfur content in motor gasoline and diesel will help to reduce carbon deposits of engines, extend the lifetime of exhaust after-treatment system, and particularly, help ease air pollution.

Sulfur (mg/kg) Manganese (mg/l) Alkene(Vol%) Aromatics (Vol%) Octane Number
National-III Standard 150 16 30 40 90/93/97
National-IV standard 50 8 28 40 90/93/97
National-V standard (draft) 10 2 25 40 29/92/95
Beijing-V standard 10 2 25 60 (alkene+ aromatics) 29/92/95