Comments on: BASF plans US$900 million expansion project in Nanjing http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html Mon, 8 Sep 2008 00:03:16 +0000 http://wordpress.org/?v=2.3.2 By: laurentius Metaal http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9655 laurentius Metaal Wed, 26 Mar 2008 13:43:14 +0000 http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9655 Thanks Andy for your response. "cracking and refining" is also confusing. By cracking you change the molecule structure and it enables the production of chemicals unknown in the natural world. Refining is taking a product and purify it or harvesting different pure products out of one mixed feedstock through destilation processes. Refining is comon in the oil industry, cracking (molecules) is what BASF does. Thanks Andy for your response. “cracking and refining” is also confusing. By cracking you change the molecule structure and it enables the production of chemicals unknown in the natural world. Refining is taking a product and purify it or harvesting different pure products out of one mixed feedstock through destilation processes. Refining is comon in the oil industry, cracking (molecules) is what BASF does.

]]> By: Andy Scott http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9642 Andy Scott Wed, 26 Mar 2008 08:40:19 +0000 http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9642 Dear Laurentius, Thanks for your insightful comments. The original post was talking about two separate things which led to confusion. The fact that Sinopec, the JV partner and oil refiner in the project, had failed to be mentioned did not help either. I have seperated the two into seperate posts, and included some information that was missing in the original article. The point that I found most interesting, and unfortunately failed to raise adequately, was how China is encouraging FDI in these restricted sectors energy and material manufacturing as it tries to increase domestic production of its voracious needs, the Sinopec Exxon deal being used a second example of that. Thanks for pointing out the error and the bi-polarness of the report. Also, thanks for the additional information and links, very interesting reading. Regards, Andy Dear Laurentius,

Thanks for your insightful comments. The original post was talking about two separate things which led to confusion. The fact that Sinopec, the JV partner and oil refiner in the project, had failed to be mentioned did not help either. I have seperated the two into seperate posts, and included some information that was missing in the original article.

The point that I found most interesting, and unfortunately failed to raise adequately, was how China is encouraging FDI in these restricted sectors energy and material manufacturing as it tries to increase domestic production of its voracious needs, the Sinopec Exxon deal being used a second example of that.

Thanks for pointing out the error and the bi-polarness of the report. Also, thanks for the additional information and links, very interesting reading.

Regards,
Andy

]]> By: laurentius Metaal http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9641 laurentius Metaal Wed, 26 Mar 2008 07:22:16 +0000 http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9641 The BASF cracker uses naphta as its feedstock from Jinling Petrochemical which owns a refinery near the plant . http://www.chemicals-technology.com/projects/basf/ for more info on the total project which started with a letter of intent in 1996 and commissioning of the first plant in 2005. The BASF cracker uses naphta as its feedstock from Jinling Petrochemical which owns a refinery near the plant . http://www.chemicals-technology.com/projects/basf/ for more info on the total project which started with a letter of intent in 1996 and commissioning of the first plant in 2005.

]]> By: laurentius Metaal http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9640 laurentius Metaal Wed, 26 Mar 2008 06:41:59 +0000 http://www.china-briefing.com/news/2008/03/24/basf-plans-us900-million-expansion-project-in-nanjing.html#comment-9640 I will have to jump in here as two different items are mixed into one. BASF does not refine Oil. It is a (specialty) Chemicals company. BASF produces ethylene in this facility and does so by cracking natural gas. The ethylene is used for a myriad of chemicals such as PVC and PET to name a few. It consumes a lot of energy and that is why most of these facilities can be found in the Middle East where subsidized energy inputs or low transportation costs make it the best place. In germany new ethylene crackers are not welcomed due to regulatory constraints. It does not add any energy infrastructure but requires additional (energy) infrastructure for its utilities. I will have to jump in here as two different items are mixed into one.

BASF does not refine Oil. It is a (specialty) Chemicals company. BASF produces ethylene in this facility and does so by cracking natural gas. The ethylene is used for a myriad of chemicals such as PVC and PET to name a few. It consumes a lot of energy and that is why most of these facilities can be found in the Middle East where subsidized energy inputs or low transportation costs make it the best place. In germany new ethylene crackers are not welcomed due to regulatory constraints.

It does not add any energy infrastructure but requires additional (energy) infrastructure for its utilities.

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