Maoming Petrochemical to expand ethylene production

15-Feb-05

Keeping in view the robust growth coupled with rising demand for petrochemicals, China needs to add domestic production facilities. Chinese ethylene consumption in 2004 is expected at 15 million tons, but the country can produce 6.5 million tons of ethylene, only about 43% of the countrys total consumption,. The rest has to be imported. China will produce 8.5 million tons of ethylene next year, but the production still falls short of market demand. To keep up with the increasing demand, the recently started Maoming Petrochemical Corporation in south China's Guangdong Province, has commenced expansion of its existing ethylene facility at an estimated investment outlay of 6 billion yuan (US$725 million). The project, expected to commence production in Sept 2006, includes : An ethylene unit with production capacity of 640,000 tpa An high density polyethylene (HDPE) unit with production capacity of 350,000 tpa A polypropylene (PP) unit with production of 300,000 tpa The facility will also include a unit with an annual production of 250,000 tons of high pressure polyethylene and two 410-ton/hour oil-burning boilers. Upon the completion of the project, Maoming Petrochemcial will expand its annual ethylene production capacity to 1 million tons as against 360,000 tons at present and its annual synthetic resin production capacity to 1 million tons as against 440,000 tons at present.