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In January this year, two sets of new ethylene plants were put into operation in China. Tianjin Petrochemical's 1 million-ton/year ethylene and auxiliary project, Huajin Tongda Chemical Company's 450,000-ton/year ethylene project in Panjin, Liaoning Province, commenced production on January 16 and January respectively. After the two projects were put into production, China's ethylene production capacity reached 13.23 million tons per year, an increase of 35% from three years ago.
This year, there are 1.64 million tons/year of ethylene projects in operation in China, including Zhenhai Refining and Chemicals' 1 million tons/year ethylene project and Shenhua Baotou Coal Chemical Company's 300,000 tons/year coal-to-olefins project. Shenhua Baotou Coal Chemicals' 300,000-ton/year olefin plant is the world's first coal-to-olefin plant.
In 2011, China will add 1.18 million tons of ethylene per year. Fushun Petrochemical’s 800,000-ton/year cracker will be put into operation in the first half of 2011. Sichuan Petrochemical’s 800,000-ton/year cracker will be put into operation by the end of 2011. Lanzhou Petrochemical will expand its cracker capacity from 710,000 tons/year in 2011. 920,000 tons/year. In 2013, China will add 2.4 million tons/year of ethylene production capacity, including Wuhan Petrochemical's 800,000 tons/year new cracker. Daqing Petrochemical will increase its ethylene production capacity from 600,000 tons/year to 1,200,000 tons/year.
CNOOC is expected to start the second phase of this year's project, including a 10 million tons/year refinery and a 1 million tons/year ethylene cracker. The project was delayed due to the financial crisis. According to a person familiar with the company, "The feasibility of the second phase of the project is undergoing a final evaluation and some basic work has begun."
Another major potential ethylene project in China is the $10 billion coal chemical joint venture project of Shenhua Group and Dow Chemical in Yulin, Shaanxi Province. It plans to start production in 2016 and will add 500,000 tons/year of ethylene production capacity. The feasibility study report for this project is nearing completion.
A senior person from the China Petroleum and Chemical Industry Planning Institute stated: “2009-2013 will be the peak period for the expansion of ethylene production capacity in China. Since then, the central government’s macro-control has slowed the expansion of energy. China will be new in 2009-2013. Increase the ethylene production capacity by about 9 million tons/year, which is close to double the current production capacity.After the peak of energy expansion in this round, China will reduce its dependence on imports of downstream ethylene products. The dependence on imports will fall to 40%, and may even drop to 35%. In 2009, 44% of ethylene downstream products in China were imported."
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China's ethylene production capacity has entered a high-speed expansion track
According to industry sources, due to the strong economic growth in China, China's ethylene production capacity will increase by 44% in the next three years to 19.08 million tons per year. By 2013, there will be 5 sets of new ethylene plants that will be put into operation one after another. The newly added ethylene capacity will be 5.85 million tons per year.