Ethylene Glycol Production Patterns – Recent Changes in China

By Zhang Yueli, China National Chemical Information Centre

China consumed about 12.87 million tons of ethylene glycol (EG) in 2014, 95% of which was used to make polyester. Domestic production of EG cannot keep up with demand. Thus EG imports reached 8.45 million tons in 2014, the highest in history.
The production of EG in China has been based mainly on the petro ethylene method for many years. With progress in EG production processes and expansion of production capacity, the production pattern of EG is changing here. The proportion of EG capacity employing the petro ethylene method had decreased to 72% by the end of 2014, and it is expected to contract continually in the next five years.

Raw material diversity

There were 24 main Chinese EG manufacturers in 2014, with a total output of 5.522 million tons. Petro ethylene capacity was 3.972 million tons, 72% of the overall capacity. Syngas-to-EG (including coal-to-EG) capacity was 1.05 million tons, 19% of the total. MTO to EG capacity was 0.5 million tons, 9% of the total.
State-owned petrochemical enterprises still produce most of China’s EG. Sinopec owns ten EG makers, including joint venture BASF-YPC Company Limited and Sinopec SABIC Tianjin Petrochemical Company Limited – the total capacity of these ten is 2.843 million tons, about 51% of the nation’s capacity. China National Petroleum Corporation (CNPC) owns five EG producers, with a combined capacity of 0.829 million tons, about 15% of the total. China National Offshore Oil Corporation (CNOOC) owns one EG enterprise with 0.35 million tons capacity, which is 6% of the total. Besides all of the above, the total capacity of other enterprises is 1.5 million tons, constituting a not inconsiderable 27% of the total. Table 1 shows China’s major EG producers and their capacity in 2014.
Since 2012, the pattern of EG production in China has changed considerably. For example, the proportion of total capacity under Sinopec’s management decreased from 70% in 2012 to 52% in 2014. The proportions of China’s EG capacity now operated by diversified producers are shown in Figure 1.
China’s EG capacity and output grew in a sustainable mode from 2002 to 2014. In 2014, EG output reached 4.43 million tons, and the average operating rate was 80%; both numbers are higher than those of 2013. The EG production situation from 2002 to 2014 is presented in Figure 2.

Table 1    China’s major EG producers in 2014

Company    Capacity (kt)                          Remarks
Sinopec    Sinopec Shanghai Petrochemical Company Limited    605    Petro Ethylene Method
    Zhenhai Refining and Chemical Branch Company    550    Petro Ethylene Method
    Yangzi Petrochemical Company    300    Petro Ethylene Method
    Maoming Petrochemical Company    105    Petro Ethylene Method
    Beijing Yanshan Petrochemical Company    80    Petro Ethylene Method
    Tianjin Petrochemical Company    63    Petro Ethylene Method
    SABIC Tianjin Petrochemical Company Limited    360    Petro Ethylene Method
    BASF-YPC Company Limited (Nanjing)    300    Petro Ethylene Method
    Sinopec Wuhan Branch Company    280    Petro Ethylene Method
    Sinopec Hubei Chemical Fertilizer Branch Company    200    Syngas to EG
    Sinopec Total    2843    
CNPC    Liaoyang Petrochemical Branch Company    200    Petro Ethylene Method
    Jilin Petrochemical Branch Company    159    Petro Ethylene Method
    Fushun Petrochemical Branch Company    60    Petro Ethylene Method
    Xinjiang Dushanzi Petrochemical Branch Company    50    Petro Ethylene Method
    Sichuan Petrochemical Company Limited    360    Petro Ethylene Method
    CNPC Total    829    
CNOOC    CNOOC and Shell Petrochemical Company Limited    350    Petro Ethylene Method
    CNOOC Total    350    
Others    Liaoning North Chemical Industry Company Limited    150    Petro Ethylene Method
    Tongliao Gold Coal Company Limited    150    Coal to EG
    Xinxiang Yongjin Chemical Company Limited    200    Coal to EG
    Anyang Yongjin Chemical Company Limited    200    Coal to EG
    Puyang Yongjin Chemical Company Limited    200    Coal to EG
    Ningbo Fund Energy Company Limited    500    MTO to EG
    Xinjiang Tianye Group Company Limited    50    Syngas to EG
    Shandong Hualu Hengsheng Group Company Limited    50    Syngas to EG
    Others Total    1500    
Total    5522    



EG imports grow

In China, the demand for EG has exceeded the supply for a long time. The import volume was 2.15 million tons in 2002, and rose to 8.45 million tons in 2014. This means that the growth of EG imports is both sustained and rapid. The changes in the import volume and import value of EG from 2002 to 2014 in China are presented in Figure 3.

EG capacity will increase continually

Only a few new EG plants employing petro ethylene technology are to be constructed in the next few years. They include plants of Fujian Refining and Petrochemical Company Limited, China Sanjiang Fine Chemicals Company Limited, Far Eastern Petrochemical (Yangzhou) Company Limited, Zhongke Joint Venture Guangdong Refining and Chemical Integrated Project, Sino-foreign Joint Venture Zhejiang Donghai Refining and Chemical Integrated Project and Sinopec Hainan Refining and Chemical Company Limited, with about 2.8 million tons capacity in total. In addition, many proposed syngas-based projects are underway or planned for construction. More than 5.5 million tons of syngas-based EG capacity will be put into production here in 2015-2016.
In 2015, new production capacity of EG is forecast to reach 4.27 million tons, 1.20 million tons of which employs the petro ethylene method, while 3.07 million tons is syngas based. With the growth of domestic capacity to make EG, China’s dependence on foreign EG is expected to decline.