Coal/Oil Co-processing Pilot Plant and Coal Tar Hydrogenation Plant Projects in China!

Yokogawa has received orders from Shaanxi Yanchang Petroleum (Group) Co., Ltd. (Yanchang Petro) to supply Yokogawa control systems for two groundbreaking oil plant construction projects in China. Both of these plants will employ KBR’s Veba Combi-Cracking (VCC) process, an advanced technology that is capable of converting petroleum residues into high quality gasoline and diesel oil products.

The first of these project orders is for Shaanxi Yanchang Petroleum (Group) Co., Ltd. Oil-coal New Technology Corporation, a Yanchang Petro subsidiary that is constructing an advanced coal/oil co-processing pilot plant. This plant will convert coal and refining residues into diesel oil and other high value-added products, and will have an annual production capacity of 450,000 tons. The second order is for phase 1 of a project by Shaanxi Yanchang Petroleum Anyuan Chemical Co., Ltd., also a Yanchang Petro subsidiary, that involves the construction of a coal tar hydrogenation plant. This plant will produce light and heavy paraffin oil from coal tar. When completed, this plant will have an annual production capacity of 1 million tons, making it one of the largest plants of its type in China.

Under the terms of its contract with Yanchang Petro, Yokogawa China will provide the CENTUM® VP integrated control system for both projects as well as engineering and commissioning services. The two plants are scheduled to start operation in June 2014.

In China, Yokogawa has a strong track record in providing control systems for use in large-scale chemical and petrochemical plants and has supplied Yanchang Petro with numerous control systems, field instruments, and analyzers. Yokogawa’s success in winning this order from Yanchang Petro can be attributed to the reputation of our control systems for being highly reliable and our rich engineering experience and ability to provide appropriate engineering services on time.

Naoto Kousaka, vice president of Yokogawa China, had the following to say about these orders:
“In China, ever greater attention is being paid to the need for the highly efficient and comprehensive utilization of hydrocarbons. KBR’s VCC process plays a very important role in this. Yokogawa’s proven technology and strong track record in providing solutions to Yanchang Petro were key factors in the winning of these control system orders. With our highly reliable control systems and field instruments as well as our ability to provide quality engineering and other services, I believe that Yokogawa is well positioned to make a significant contribution in enhancing China’s production of high quality diesel products.”

* Headquartered in Yan’an city, Shaanxi province, Yanchang Petro is China’s fourth largest energy and chemical company. Founded in 1905, the company is committed to the integrated and efficient development, conversion, and utilization of oil, natural gas, coal, rock salt, and other resources. In 2013, it became the first enterprise from Western China to make it onto the Fortune Global 500 Companies list.