Status Quo of Ethylene Industry in China

At present, China has 16 ethylene production companies, 18 sets of devices. In 2004, it produced 6.27 million tons of ethylene, ranking third in the world; 15.30 million tons of synthetic resins in five categories, ranking fifth in the world; 1.29 million tons of synthetic rubber, ranking fourth in the world; and 10.43 million tons of five synthetic fibers. Ranked first in the world. In 2005, 7.55 million tons of ethylene was produced. In the past 15 years, China’s ethylene consumption was in a period of rapid growth, with annual average consumption increasing by 16.1%; annual average GDP growth was 9.3%, and elasticity coefficient was 1.7. During the “Eleventh Five-Year Plan” period, ethylene demand continued to grow rapidly.

In recent years, the level of technical equipment in China's ethylene industry has been significantly improved, and large-scale ethylene cracking furnaces, polypropylene, acrylonitrile, catalytic pyrolysis of heavy raw materials, SBS elastomers and other complete sets of technologies have been successfully developed, and some special equipment have been domestically produced. The "three doses" are basically based in China and are at or near the advanced level in the world. The large-scale ethylene project construction was introduced from the complete set, and only the process package and some key equipment were introduced; the general contracting from abroad was transferred to the domestic design, procurement and organization.

According to the “Special Plan for Medium and Long-Term Development of the Ethylene Industry” promulgated by the National Development and Reform Commission on March 16, this year, during the “Eleventh Five-Year Plan” period, China will strictly implement the ethylene industry access system and comprehensively increase the industrial scale, resource utilization, and safety and environmental protection level. The specific measures include: Ethylene project construction must meet the development requirements of industrial layout and “base, large-scale, integrated, and park-based”; in principle, the new ethylene project should rely on the existing large-scale oil refining enterprises to implement integration of oil refining and chemical industry; The single line scale of the project will reach 800,000 tons or more; the ethylene downstream petrochemical plant shall have a world-class economic scale; for the Sino-foreign joint venture ethylene project, the foreign company must possess the main equipment advanced technology or raw material supply capacity, and the Chinese party should be relatively controlled.