Petrochemicals fueling Fujian growth
State-of-the-art facilities and more investment opportunities
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.