Guangdong to double petrochem output

18-Jun-05

South China's Guangdong province's economy accounts for 12% of the nation's. Guangdong's petrochemical output, which stood at US$24.64 billion in 2003, accounted for 10% of the national total and 9.5% of the total industrial output of the province in that year. Despite this, local production does not meet demand, forcing th eprovince to import about 80% of ethylene equivalent, almost all engineering plastics and 11 million tons of refined oil products from elsewhere in the country and the rest of the world. Demand is expected to continue to surge ahead as the province strives to double GDP by 2010 and quadruple it by 2020. As per the released strategy outlined in the province's petrochemical sector plan until 2010, South China's Guangdong Province plans to more than double petrochemical output by 2010 to meet local demand and build oil reserve facilities. An investment outlay of US$21.96 billion is expected to be made towards the new expansion plan. The province's annual petrochemical industry output is expected to grow to US$87.95 billion in 2010 from the estimated US$36.14 billion this year, The major ethylene projects in the scheme include the expansion of Sinopec's facilities in Maoming and Guangzhou and the CNOOC-Royal Dutch/Shell asset in Huizhou. The province is also seeking approval for a new ethylene project in Shantou, amongst other locations. Ethylene production capacity in Guangdong is expected to grow to 4.4 million tons in 2010 from 1.38 million this year Five oil refining projects have been designated as key elements in the plan, including the expansion and renovation of the complexes of China Petrochemical Corp in Maoming, Guangzhou and Zhanjiang, the one in Huizhou that is currently under construction with the involvement of China National Offshore Oil Corp (CNOOC), and new facilities with total annual capacity of 20 million tons. Refining capacity in the province is expected to top 63 million tons in 2010 from the estimated 28.5 million tons this year.