2016’s Top Ten News Items on China’s Petrochemical Industry

China Chemical Reporter (CCR) has selected the top ten petrochemical news stories for 2016:

1. Sinopec Group’s project on development & application of aromatics technologies won the special-class award of the National Science and Technology Progress Award

On January 8, 2016 a project regarding development and application of high-efficient environment-friendly aromatics technologies won the special-class award of the National Science and Technology Progress Award. The project was submitted by Sinopec Group, and makes China the third country to possess such techniques, after the U.S. and France.

2. ChemChina plans to purchase Switzerland’s Syngenta

On February 3, 2016 China National Chemical Corporation (ChemChina) announced that it would purchase Syngenta, a Swiss producer of agrochemicals and seeds, for US$43 billion. It would be China’s largest overseas acquisition.

3. China announced intent to strictly control initiation of new petrochemical and coal chemical projects in upper-middle reaches of Yangtze River

On February 23, 2016, the National Development and Reform Commission (NDRC) and the Ministry of Environmental Protection issued the Guiding Opinions on Strengthening Prevention and Control of Environmental Pollution in the Yangtze River Valley. The document makes explicit reference to strictly controlling the number of new petrochemical and coal chemical projects in the upper and middle reaches of the Yangtze River.

4. 16 independent refineries cooperated to increase clout in purchasing foreign crude oil

On February 29, 2016 sixteen enterprises possessing or applying for qualification to import & use crude oil established China (Independent Refineries) Oil Purchase Alliance, which is to gradually establish a platform striving for centralized purchases of overseas crude oil, collective negotiations, uniform prices, centralized settlement and utilization based on respective quotas.

5. China’s first mixed cracking treatment (MCT) unit started up

China’s first MCT unit was put into operation, marking that China has mastered the world’s leading heavy oil processing technologies, as announced by Beijing Sanju Environmental Protection & New Materials Co., Ltd. (Beijing Sanju) on April 15, 2016. The unit was jointly developed by Beijing Sanju and Beijing Huashi United Energy Technology and Development Co., Ltd.

6. China led formulation of international criteria on controlled-release fertilizers

On April 15, 2016, Fertilizers and Soil Conditioners – Controlled-release Fertilizer –  General Requirements (ISO 18644) was implemented. This is the first time that China guided the enactment of international standards regarding fertilizer products.

7. A number of chemical industrial parks were criticized because of pollution issues

Domestic environmental regulations became more stringent in 2016. Due to pollution issues, the Central Environmental Protection Inspectorate criticized many chemical industrial parks, like Guanyun Lingang Industrial Park (Lianyungang city, Jiangsu province), Guannan Chemical Industrial Park (Lianyungang city, Jiangsu province), Yifeng Industrial Park (Yichun city, Jiangxi province), Jingdezhen Leping Industrial Park (Jiangxi province) and Wannian Fengchao Industrial Park (Shangrao city, Jiangxi province).

8. China’s first large outdoor tire proving ground came into play

On October 18, 2016, Linglong Group put the Sino Asia Tire Proving Ground into operation in Zhaoyuan city, Shandong province. With an investment of RMB1.13 billion, it is the first large outdoor tire proving ground in China.

9. East section of the third West-East Gas Pipeline completed

On December 12, 2016 natural gas from the Central Asia and Tarim gas fields was transmitted to Fuzhou city, Fujian province, marking the completion of the eastern section of the third West-East Gas Pipeline.

10. Shenhua Ningxia Coal Industry Group Co., Ltd. (SNC) put coal to liquid (CTL) project on stream

On December 28, 2016 SNC’s 4 million t/a CTL (indirect liquefaction of coal to oil) project went on line. With SNC-held intellectual property rights, the project is the largest of its kind in the world in terms of both investment and capacity.