Petro­chem­i­cals fu­el­ing Fujian growth

State-of-the-art fa­cil­i­ties and more in­vest­ment op­por­tu­ni­ties

China Daily (Hong Kong) - - FUJIAN SPECIAL - By ZHUAN TI zhuanti@chi­

As the au­thor­i­ties in Fujian prov­ince roll out a range of ini­tia­tives to aid growth in the petro­chem­i­cal in­dus­try, more op­por­tu­ni­ties have been cre­ated for in­vest­ment in the pil­lar of the lo­cal econ­omy.

Quanzhou, a busi­ness hub in the prov­ince, re­cently at­tracted a group of petro­chem­i­cal projects in a key move to­ward the city’s goal of build­ing a su­per-large petro­chem­i­cal center, lo­cal of­fi­cials said.

The 20 projects signed in late Novem­ber have a com­bined in­vest­ment value of 30.8 bil­lion yuan ($5.1 bil­lion) and cover a wide ar­ray of sec­tors from chem­i­cals and syn­thetic resins to ar­ti­fi­cial rub­ber and tex­tiles made of chem­i­cal fibers.

They are es­ti­mated to gen­er­ate nearly 57.27 bil­lion yuan in com­bined an­nual out­put value and 3.1 bil­lion yuan in taxes af­ter they are put into op­er­a­tion.

Most of the projects will be built at a petro­chem­i­cal in­dus­trial park in the city’s Quan­gang dis­trict.

With a planned area of 29.6 square kilo­me­ters, about 13 sq km of it now de­vel­oped, the park is al­ready home to 28 com­pa­nies.

They gen­er­ated 76.7 bil­lion yuan in pro­duc­tion value last year, around 35 per­cent of the prov­ince’s to­tal in petro­chem­i­cals.

Yan Zhao­hui, deputy Party chief of the dis­trict, said Quan­gang has a solid in­dus­trial foun­da­tion, a con­ve­nient trans­porta­tion net­work, ef­fi­cient ad­min­is­tra­tive ser­vices, sound pub­lic fa­cil­i­ties con­ducive to the petro­chem­i­cal in­dus­try, and a friendly en­vi­ron­ment, all al­lur­ing to in­vestors.

The goal for Quan­gang, a key na­tional oil re­fin­ing center that faces the Meizhou Gulf, is to draw 60 petro­chem­i­cal projects by 2020.

To­gether they would then have an­nual pro­duc­tion ca­pac­ity of 26 mil­lion tons of re­fined oil and 2.1 mil­lion tons of eth­yl­ene widely used in chem­i­cal in­dus­try, said Yan, adding the dis­trict would then sur­pass 250 bil­lion yuan in petro­chem­i­cal pro­duc­tion value.

The Quan­gang park ranked sixth among the top 20 chem­i­cal zones na­tion­wide last year.

Another high­lighted petro­chem­i­cal in­dus­trial park in the city is a 33.8 sq km Quan­hui park on a deep-wa­ter har­bor in the Meizhou Gulf. It has var­i­ous zones for man­age­ment, pro­duc­tion, busi­nesses, ware­hous­ing, lo­gis­tics and pub­lic fa­cil­i­ties.

SinoChem Group has in­vested heav­ily in a 12-mil­lion-ton petro­chem­i­cal project in the park, which will at­tract more in­vestors from re­lated busi­nesses, ac­cord­ing to the park’s ad­min­is­tra­tive com­mit­tee.

Another com­pany has al­ready joined in. An eth­yl­ene fa­cil­ity de­signed to pro­duce 1 mil­lion tons an­nu­ally is now un­der con­struc­tion at the park.

An­chored by the mas­sive SinoChem project, the park fo­cuses on re­fin­ing crude oil, pro­duc­ing olefins and fur­ther pro­cess­ing petro­chem­i­cals for down­stream sec­tors along the in­dus­trial chain, lo­cal of­fi­cials said.

It aims to be­come a na­tional petro­chem­i­cal in­dus­trial center with an edge in the in­ter­na­tional mar­ket, they added.

Sup­ple­ment­ing the Quan­hui park is the Gulei Port eco­nomic de­vel­op­ment zone in nearby Zhangzhou.

On the Gulei Penin­sula, the zone has a planned area of 278 sq km, one­fifth of it al­lo­cated pro­duc­tion fa­cil­i­ties

signed by Quan­gang in­dus­trial park

now in op­er­a­tion in Quan­gang dis­trict

planned area of the Quan­hui park of crude oil will be pro­cessed at the

Gulei eco­nomic zone in­dus­trial out­put value by Fujian’s petro­chem­i­cal in­dus­try last year for Sinopec, one of the na­tion’s petro­chem­i­cal gi­ants.

The Gulei zone’s goal is to process 50 mil­lion tons of crude oil, pro­duce 5 mil­lion tons of eth­yl­ene and gen­er­ate 5.8 mil­lion tons of xy­lene an­nu­ally by 2030, ac­cord­ing to its de­vel­op­ment blue­print.

It will then be able to in­te­grate re­sources along the in­dus­trial chain and de­velop into an eco- friendly petro­chem­i­cal in­dus­trial clus­ter, the zone’s lead­ers said.

In­vest­ment pri­or­i­ties

The petro­chem­i­cal in­dus­try, which re­quires in­ten­sive re­sources, cap­i­tal and tech­nol­ogy, plays a piv­otal role in the sus­tain­able de­vel­op­ment of the prov­ince’s econ­omy, lo­cal of­fi­cials said.

The sec­tor gen­er­ated more than 90.7 bil­lion yuan in in­dus­trial out­put value in 2012, an in­crease of 17.3 per­cent over 2011.

With an in­creas­ingly strong econ­omy from years of de­vel­op­ment, Fujian has pre­pared for a fur­ther growth in the petro­chem­i­cal in­dus­try.

Ac­cord­ing to a de­vel­op­ment plan for the Western Tai­wan Straits Eco­nomic Zone, of which the prov­ince is a cru­cial com­po­nent, lo­cal au­thor­i­ties are ad­vanc­ing con­struc­tion and ex­pan­sion of petro­chem­i­cal cen­ters at the Meizhou Gulf and Zhangzhou city.

The pro­vin­cial gov­ern­ment has po­si­tioned Fujian as a key coastal petro­chem­i­cal in­dus­trial hub with se­ries of projects in op­er­a­tion. Con­struc­tion on another group of fa­cil­i­ties is now un­der­way.

The gov­ern­ment en­cour­ages in­vest­ment to flow into such pri­or­ity sec­tors as petro­chem­i­cals, chem­i­cals and en­vi­ron­men­tal pro­tec­tion.

The Meizhou Gulf in­dus­trial center and the Gulei eco­nomic zone, as well as the Ningde petro­chem­i­cal in­dus­trial park and the Fuzhou new ma­te­rial zone, ac­com­mo­date the pro­duc­tion of re­fined oil and pro­vi­sion of oil prod­ucts in­clud­ing eth­yl­ene and propy­lene.

De­vel­op­ment of new ma­te­ri­als and fine chem­i­cals will also be fo­cuses of the in­dus­trial parks. Projects in syn­thetic resin, rub­ber and fiber will re­ceive sup­port from gov­ern­ment.

Con­struc­tion of a large petro­chem­i­cal and lo­gis­tics mar­ket is also a pri­or­ity on the agenda.

Au­thor­i­ties are also pro­mot­ing low- carbon in­dus­tries, call­ing on lo­cal busi­nesses to re­place oil with coal-based fu­els by us­ing in­no­va­tive tech­nolo­gies.

The pro­vin­cial gov­ern­ment supports tra­di­tional man­u­fac­tur­ers to in­no­vate tech­nolo­gies and up­grade their prod­ucts.

Fer­til­izer mak­ers are urged to adopt new tech­nolo­gies, ma­chines and pro­duc­tion meth­ods to im­prove ef­fi­ciency and re­duce costs.

The gov­ern­ment is pro­mot­ing the de­vel­op­ment of high-per­for­mance, low-tox­i­c­ity pes­ti­cides and her­bi­cides, as well as “green” and safe ad­di­tives in food and feed.

Other fine chem­i­cals that the gov­ern­ment en­cour­ages in­clude syn­thetic ad­he­sives, sur­fac­tants and phar­ma­ceu­ti­cal in­ter­me­di­ates.

Lo­cal au­thor­i­ties have placed a value high on R&D in the re­cy­cling of carbon diox­ide and solid wastes to turn them into new re­sources.

For man­u­fac­tur­ers of phos­phates, fer­til­iz­ers and acety­lene, a pri­or­ity is to treat phos­pho­rous and al­kali residues as well as car­bide slag to re­duce harm­ful ef­fects on the en­vi­ron­ment and im­prove ef­fi­ciency in use of re­sources.


The 12-mil­lion-ton re­fin­ing oil project by SinoChem Group un­der con­struc­tion at the Quan­hui petro­chem­i­cal in­dus­trial park.


Work­ers build a chem­i­cal plant in Gulei.

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