Petrochemical output in China to rise by 22% pa

23-May-05

With several petrochem projects nearing completion, and scheduled to come on stream soon, China's petrochemicals production capacity will see a quantum jump. China's domestic petrochemicals capacity will rise to about 20 million tpa from 6.2 million tons in 2004. Output is estimated to increase by 22% pa until 2010, reducing dependence on imports of petrochemicals. The output of ethylene is thus foreseen to jump up by 22% compared to the growth of 8% in the past 14 years. This capacity increase can be attributed to the various projects scheduled for completion until 2010: * Sinopec and Petrochina have planned capacity expansion: Sinopec plans to invest US$5 billion in two chemical plants after rising demand lifted the company's 2004 profit to a record high. PetroChina, the nation's biggest oil company, has investments plans to the tune of US$3.3 billion for expanding the country's largest petrochemical project. * Several projects await approval. This includes one led by Exxon.