Three Provinces Announce Adjustment and Stimulation Programs for Petrochemical Industry
Year:2009 ISSUE:30
COLUMN:POLICY, ECONOMY & FINANCE
Click:206    DateTime:Oct.28,2009
Three Provinces Announce Adjustment and Stimulation Programs for Petrochemical Industry    

In response to the country's adjustment and stimulation programs for the petrochemical industry, three provincial governments recently announced their own programs for the period of 2009-2011.

Anhui province  

In 2008 Anhui province had 786 petrochemical enterprises of significant scale (those non state-owned companies with annual sales revenues of more than RMB5 million and all state owned companies). Together they achieved an industrial added value of RMB24.52 billion in 2008, with year-on-year growth of 28.4%; recorded combined sales revenues of RMB86 billion with year-on-year growth of 27.6%; and exported RMB7.71 billion of petrochemicals, with growth of 30.7%. In 2008, the whole province produced 3.29 million tons of sulfuric acid - the country's sixth biggest, 228 thousand tons of caustic soda, 369 thousand tons of soda ash, 2.386 million tons of chemical fertilizers (pure nutrients), 202 thousand tons of pesticides technical, 160 thousand tons of citric acid and 12.19 million sets of tires.
   Under the new program, the province expects to achieve an industrial added value of RMB38 billion in 2011, with an average annual growth of 15% between 2009 and 2011. The province's industrial added value is planned to reach RMB200 billion in 2020. The program also rounded out the targets of pollutant reduction and energy conservation.
   Anhui provincial government programmed four coal chemical bases and six industrial chains, which will be focused and supported.
   Huainan Coal Chemical Base, by using clean coal gasification routines, will possess production capacities of 750 000 t/a nitric acid, 400 000 t/a ammonium nitrate, 800 000 t/a ammonia, 600 000 t/a urea, 1.04 million t/a olefin, 600 000 t/a monoethylene glycol, 500 000 t/a dimethyl carbonate, 800 000 t/a dimethyl ether and 300 000 t/a coal tar in 2020.
    Huaibei Coal Chemical Base, in 2020, will be capable of producing 4.4 million t/a coke, 500 000 t/a coal to oil, 1.2 million t/a coal to methanol, 1.4 million t/a calcium carbide, 760 000 t/a caustic soda, 1 million t/a PVC and 2.5 million t/a calcium carbide slag to cement.  
   Bogao Coal Chemical Base is programmed to develop agrochemicals and fine chemicals by clean processes. In 2020 the base will have an ability to produce 1.5 million t/a ammonia, 3 million t/a urea, 1.2 million t/a methanol, 1 million t/a dimethyl ether, 60 000 t/a melamine, 40 000 t/a morpholine and 150 000 t/a hydrogen peroxide.
   Chaohu Coal Chemical Base is designed to develop coal based products. In 2020 the base will have a capacity of 1.2 million t/a methanol, 520 000 t/a coal to olefin, 600 000 t/a monoethylene glycol, 400 000 t/a PVC and 240 000 t/a PVA.
   The provincial government will promote the construction of an 8 million t/a refining project and other matching projects under Sinopec Anqing Petrochemical Company. The province will continue to solidify its dominance in the bio-chemicals sector and will process 10 million t/a of corn and non-food biomass in 2020. The other four industrial chains emphasized are fine chemicals, salt chemicals, rubber processing and sulfur/phosphorus derivatives.

Henan Province

In 2008 Henan province had 1 176 petrochemical enterprises of significant scale. Together they achieved an industrial added value of RMB78.05 billion in 2008 and sales revenues of RMB263 billion. Henan's output of methanol and polyamide 66 salt were both China's biggest in 2008 - 1.68 million tons and 136 thousand tons respectively.
   The Henan provincial government reported in its new program that this province lacks petroleum reserve but is rich in coal, salt and water. It outperforms other provinces in the technologies of coal-to-methanol, polyamide, and traditional salt chemicals and coal chemicals. The province has made little progress in modern coal chemical know-how and technologies.
   Henan province expects to expand the production capacity of methanol to olefin, monoethylene glycol, PVC, acetic acid, polyamide 66 salt, refining, para-xylene and soda ash in the coming three years and reduce consumption and pollution dramatically.
   With regard to the single-carbon chemical chain, Henan province will construct a 600 000 t/a coal-to-olefin project in its north region and expand the existing 200 000 t/a acetic acid unit of Haohua Junhua Group to 400 000 t/a. All synthetic ammonia units with a capacity of less than 80 000 t/a will be gradually eliminated in this province. Four salt chemical bases will be built and chlorine derivatives will be developed. Before 2012, all diaphragm caustic soda units will be closed.
   Henan province will focus on constructing three petrochemical bases in Luoyang, Puyang and Shangqiu. Luoyang Petrochemical Company of Sinopec Group will complete expansion of the 10 million t/a refinery as soon as possible and start the renovation from 10 million t/a to 16 million t/a after settlement of crude oil supply. The province will actively promote the preparing work of the 10 million t/a refining project in Shangqiu with CNPC's investment and is expected to launch before 2015.

Sichuan Province

Sichuan province has advantages in the reserves of natural gas, sulfur, phosphorus and titanium. The province's feed grade dicalcium phosphate capacity accounts for one third of the national total. Its rutile titanium dioxide production capacity ranks first in China. In 2008 the province's chemical industry recorded sales revenues of RMB97.9 billion, the ninth biggest nationwide, growing 24.95% year over year.
   Although it has abundant reserves of natural gas, the supply deficit in the province reached more than one billion cubic meters in 2008, with a negative impact to its chemical industry. Since September 2008, Sichuan's petrochemical industry has suffered slowed growth in production, softened demand, dramatic market fluctuations, sales difficulties, augmented inventory and tightened cash flow.
   The Sichuan provincial government recently issued a program for its petrochemical industry with a target that the sales revenue will reach RMB157 billion in 2011 and the industrial added value will be RMB71 billion. The program also sets a high standard for new projects. The provincial government aims to develop and strengthen eight industrial chains in 2009-2011. In these three years, 137 projects will be constructed with a total investment of RMB82.5 billion.    
   Ten key projects will come on stream in 2009. The provincial government will also help start construction of CNPC's 10 million t/a refinery and 800 000 t/a ethylene project and the 60 000 t/a butanediol and 46 000 t/a THF projects of Sichuan Chemical Industry Holdings (Group). The 1 000 t/a aramid fiber project of China BlueStar Chenguang Research Institute of Chemical Industry and 5 000 t/a polyphenylene sulfide project of Sichuan Deyang Technology Company will be supported to launch.
    The provincial government will improve the construction and management levels of chemical parks, upgrading the petrochemical industry in the province. Six chemical parks will be emphasized.  


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