China's petrochemical industry posted gains last year in a campaign to meet rapidly growing demand.
In the first month of 1992 China's petrochemical output increased 13% from the same time last year.
In January China Petrochemical Corp. (Sinopec) increased ethylene production 11.9% from January 1991 to 151,000 metric tons and produced 157,000 tons of plastics, up 18.4%. Sinopec petrochemical plants produced 24,000 tons of synthetic rubber, 87,000 tons of synthetic fiber monomer, 40,000 tons of synthetic fiber, 281,000 tons of synthetic ammonia, and 430,000 tons of urea in January. Those volumes represented increases of 4.7-19.4%.
In addition, Sinopec's petrochemical/refining, complexes processed more than 2 million b/d of crude and produced more than 1 million b/d of refined products, respective increases of 11.317( and 15.6%.
Spurred by the positive performance, Sinopec is moving ahead with projects included in the remainder of the eighth 5 year plan covering 199195, Beijing China Daily reports.
1991 RESULTS
Sinopec increased petrochemical production value by 8.6% during 1991 to $13.3 billion.
The industry sold $14.2 billion of petrochemical products in 1991, up 22% from 1990, China Daily said. Ethylene production rose 8.4% from 1990's level to a record 1.56 million metric tons/year, 14% above target for the year.
The increase was attributed to installation of new units in the Yanshan Petrochemical Corp. complex at Beijing and the Daqing petrochemical complex each of which produced 310,000 tons/Year of ethylene in 1991.
In addition to domestic production, China's 13 refineries processed 200,000 b/d of crude imported from eight countries, an increase of 96,000 b/d from 1990.
Exports of petrochemical products totaled about $1 billion in 1991, including $251 million worth of products exported directly by Sinopec. During 1990 the value of exports was about $1.42 billion (OGJ, Oct. 14, 1991, p. 26).
The value of technology and equipment imported last year was $400 million, up 1.9% from 1990.
Investment in petrochemical construction totaled $1.3 billion in 1991, and $407 million was allotted for revamps and modernization projects.
Sinopec received $750 million in government loans, export credits, and syndicated loans in 1991 to pay for imported technology and equipment and awarded $28 million in contracts for construction projects and labor to entities from the Soviet Union, Indonesia, Bangladesh, and Hong Kong. Sinopec used loans from the U.K. government to build the first polyethylene plant in Xinjiang Uygur Autonomous Region (OGJ, Sept. 16, 1991, Newsletter).
The company turned over about $3.3 billion to the state last year, about $270,000 more than the target.
Sheng Huaren, president of Sinopec, said most of that increase was in taxes, which rose 10.4% during 1991. Of the country's 36 petrochemical enterprises, at least 23 met tax targets 1-2 months ahead of schedule, Sheng noted.
Sinopec has fixed assets valued at $15 billion and 69 subsidiaries throughout the country.
CONSTRUCTION PLANS
Last month Sinopec International and China National Technical Import & Export Corp. (Cntic) let contract to Italy's Tecnimont SpA to provide $150 million in equipment for the proposed 130,000 ton/year Guangzhou ethylene project (OGJ, Apr. 29, 1991, p. 46). To be complete by yearend 1995, it will be the first ethylene plant in South China.
China will invest $360 million in the project during 1991-95.
Cntic eyes expansion to 220,000 ton/year of ethylene and plans to import equipment for polyethylene and polystyrene plants. Sinopec International will import polypropylene and styrene equipment as the project expands.
Other plans for 1992 include boosting ethylene capacity at Sinopec's Yanshan Petrochemical Corp. complex in Beijing to 450,000 metric tons/year from 300,000 tons/year, making that plant the largest in the country.
Also this year Sinopec plans to import technology and equipment for a 300,000 ton/year ethylene plant in Maoming, Guangdong province.
In addition, Wanxian prefecture in Sichuan province is poised for a $243.3 million government investment in its petrochemical production base the next 4 years. Plans include a 60,000 ton/year polyvinyl chloride plant and two 100,000 ton/year methanol/hydrochloric acid plants.
EXPORTS-IMPORTS OUTLOOK
Deng Wensen, deputy general manager of Sinopec's marketing research department, noted methyl tertiary butyl ether will be a much sought after commodity and could provide a boost to the company's export business.
By yearend 1995 Sinopec expects to have imported technology and equipment needed to build six ethylene plants, three polyethylene plants, and three synthetic ammonia plants, China Daily reported.
"Our import business is growing fast," said Feng Shikai, vice general manager of Sinopec International, which oversees the export and import business for Sinopec.
He expects the export business to pick up speed as well, with growth forecast at more than 10% this year.
Sinopec exports about $1.5 billion/year worth of products, mostly base oils, petroleum coke, paraffin way synthetic rubber, and synthetic resins, all Sinopec produced. At a Sinopec conference early this year, government officials proposed allowing Sinopec international, which handles about one fifth of China's petrochemical exports, be dealt a bigger share of the petrochemical export market.
Further, certain Sinopec subsidiaries are likely to be given more decision making authority in foreign trade affairs.
"We also plan to improve the performance of our overseas offices this year to gain access to more international markets," Feng said.
Sinopec has offices in the U.S., Japan, Hong Kong, Thailand, Germany, and Ecuador, with plans to enter markets in Africa and South America by exporting paraffin wax and petroleum coke.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
