Rebuilding industrial momentum through chain extension, supplementation, and strengthening: A report on "reducing oil and increasing chemical production" from a major petrochemical town in Northeast China
2024-08-08
Walking in the Hengli Petrochemical Industrial Park on Changxing Island in Dalian is like walking through giant castles made up of storage tanks and pipelines. From oil refining to chemical engineering, various materials are tightly connected through pipelines, and the upstream and downstream processes are interlinked. From a drop of oil to a piece of cloth, we aim to form a full industry chain development model Xu Jin, General Manager of Hengli Petrochemical (Dalian) Chemical Co., Ltd., said that the newly built Hengli New Materials Science and Technology Innovation Park in the park includes projects such as producing 2.6 million tons of functional polyester and 1.6 million tons of high-performance resin annually. It can transform basic chemical products into high-end chemical and new material products, completely connecting the industrial chain from petroleum to fine chemical industry. As one of the seven major petrochemical industry bases in China, Dalian Changxing Island is quite representative in the development of the petrochemical industry in Northeast China. As a pillar industry of the old industrial base, the petrochemical industry in Northeast China has long been plagued by the problem of "large oil head and small chemical tail". There are many bulk raw materials and fuel products such as finished oil, and few high value-added fine chemical products. In carrying out the "three major articles" of structural adjustment, many regions in Northeast China have deeply developed "original brands", continuously promoted the "reduction of oil and increase of chemical production" and "reduction of oil and increase of characteristics" in the petrochemical industry, and reconstructed industrial momentum through chain extension, supplementation, and strengthening, taking solid steps towards high-quality development. More than 60 years ago, Daqing City in Heilongjiang Province was born during the oil war, helping China shake off the label of a "poor oil country" in one fell swoop. So far, it has contributed more than 2.5 billion tons of crude oil to the motherland. Nowadays, this place is vigorously developing deep processing of petroleum, promoting the transformation and upgrading of the "oil city". In the face of increasingly fierce market competition, we must bid farewell to mass market goods and produce products with higher added value Wang Huiyu, the head of the Chemical Department of PetroChina Daqing Petrochemical Company, said that the company's independently developed and produced ABS resin products have strong impact resistance and good toughness, and can be used to produce Class A helmets and other products with higher protection levels. It is expected to be mass-produced before the end of this year. In Jilin City, Jilin Province, the Jilin Petrochemical Refining and Chemical Transformation and Upgrading Project with a total investment of 33.9 billion yuan is being intensively constructed and is planned to be fully put into operation by 2025. This is a representative of the transformation from fuel to chemical products and organic materials, "said Liu Chuang, manager of the transformation and upgrading project management department of China Petroleum Jilin Petrochemical Company. After completion, it can achieve an annual increase of 2.8 million tons of chemical products. Northeast China fully utilizes incremental structural adjustment, continuously increases the proportion of chemical products, and enhances the added value and competitiveness of products. Taking Liaoning as an example, in recent years, the Hengli Petrochemical's 20 million ton integrated refining and petrochemical project has only produced about 20% of the crude oil processing volume, while the 15 million ton Huajin Aramco project under construction is designed to produce 30% of the crude oil processing volume, with chemical products accounting for 70% to 80% of these large projects. One hand to increase efficiency, the other hand to reduce fuel consumption. Northeast China has comprehensively eliminated outdated refining and chemical production capacity. From 2019 to 2020, Liaoning completed the withdrawal of 40 refining enterprises with a capacity of less than 2 million tons, with a total withdrawal of 7.42 million tons of production capacity. Afterwards, it promoted the withdrawal of 3.5 million tons of atmospheric and vacuum distillation units in Liaoning Yuantai and 1.5 million tons of wax refining units in Shenyang. The comprehensive effect of supply side structural reform in the petrochemical industry in Liaoning Province gradually emerged, and refineries gradually developed towards integrated refining and chemical production. With the increasing demand for basic chemical raw materials, many regions in Northeast China are focusing on attracting investment from downstream petrochemical enterprises. 64 fine chemical projects with a total investment of 13.9 billion yuan are being accelerated in Yingkou City, Liaoning Province. A number of key petrochemical and fine chemical projects, such as needle coke and Kexing pharmaceutical intermediates, are being constructed at PetroChina Jinzhou Petrochemical Branch. The Sinochem Yangnong Agricultural Chemicals project with a total investment of nearly 10 billion yuan in Huludao City is under construction... Zou Zhongjia, Director of the Petrochemical Industry Department of Liaoning Provincial Department of Industry and Information Technology, said that some parks in Liaoning Province have shown a trend of gathering fine chemical enterprises. At present, the petrochemical industry chain in Northeast China is gradually extending, the proportion of fine chemicals is steadily increasing, and structural adjustments have achieved significant results. Taking Liaoning as an example, the proportion of refined oil production to crude oil processing has decreased from nearly 60% in 2013 to 46.4% in 2023, which is lower than the national average of 53%; The refinement rate of chemical industry has increased from 42% in the early stage of the 14th Five Year Plan to 46.2% in 2023, exceeding the national average level. Heilongjiang Longjiang Chemical Co., Ltd. located in Daqing City has been operating at full capacity these days, with continuous production. After the first phase of the polycarbonate joint project with an investment of 3.5 billion yuan was put into operation, the company produced over 160000 tons of high-value products such as pure benzene, phenol, and bisphenol in the first half of this year, with a revenue of 1.29 billion yuan. The chemical raw material advantage of Daqing Petrochemical Company, which is located in the upstream of the industry, has driven the agglomeration and development of downstream industries Deng Jun, Deputy General Manager of Heilongjiang Longjiang Chemical Co., Ltd., said that the company is currently planning to invest 3.5 billion yuan to build the polycarbonate phase II project. The new products will directly reach the end of the chemical industry chain and be used to produce high-end automotive lampshades, instrument panels, sunroofs and other products. (New Society)
Edit:He Chuanning Responsible editor:Su Suiyue
Source:Xinhua
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