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Transportation fuel consumption in China now outpaces the U.S. and EU combined
DES PLAINES, Ill., Oct. 27, 2016 – Honeywell (NYSE: HON) today announced China’s Dongying Qirun Chemical Co., Ltd. will license Honeywell UOP’s Unicracking™ technology for the production of diesel and naphtha at its refinery in China’s Shandong Province to meet growing domestic demand for transportation fuels. Honeywell UOP also will provide engineering, start-up services, equipment and catalysts.
“The growth in demand for transportation fuel in China now outpaces the U.S. and EU combined,” said Mike Millard, vice president and general manager of Honeywell UOP’s Process Technology & Equipment business. “The Unicracking technology provides the flexibility to upgrade a variety of feedstocks to high-quality naphtha, kerosene and diesel, and will enable Qirun to produce a broad slate of products at a reduced cost and with lower consumption of hydrogen and natural gas.”
Since Honeywell UOP’s Unicracking process was introduced in 1964, the technology has advanced thanks to the development of more effective catalysts, unit design and reactor internals. It is available in multiple flow schemes, including single- and two-stage processes, and is designed to produce higher yields of transportation fuels that adhere to tighter regulations using a wider range of feedstocks. Honeywell UOP has licensed more than 200 Unicracking units in more than 40 countries.
The stand-alone Unicracking unit will process straight run vacuum gas oil, coker gas oil and light cycle oil. The unit’s fractionation section includes Heavy Polynuclear Aromatics (HPNA) management, allowing the unit to achieve near 100-percent conversion throughout the entire cycle length.
According to the U.S. Energy Information Administration, China’s oil consumption is expected to grow to approximately 11.3 million bbl/d this year, and maintain an annual growth rate of about 2.6 percent annually through 2040. Diesel fuel accounted for about one-third of total oil products demand in China in 2014. Gasoline has a quarter of the consumed petroleum share, with robust demand due to high sales of light-duty cars.
Qirun Chemical Co., Ltd. is located Dongying City in the Yellow River delta of Shandong Province. The company’s main products are gasoline, diesel oil, light hydrocarbons, mixed aromatics, heavy oil, catalytic raw materials, residual oil, coking raw materials, wax oil, fuel oil, asphalt and naphtha.
Honeywell UOP (www.uop.com) is a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries. Honeywell UOP is part of Honeywell’s Performance Materials and Technologies strategic business group, which also includes Honeywell Process Solutions (www.honeywellprocess.com), a pioneer in automation control, instrumentation and services for the oil and gas, refining, petrochemical, chemical and other industries.
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.
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