In-depth analysis of China's seven major petrochemical bases: the key fulcrum of the global petrochemical industry pattern

The emit of the "Petrochemical sector Planning and Layout Plan" in 2014 marked that China's petrochemical sector bid farewell to the decentralized research model and entered a new era of intensive layout. In my experience, The seven national petrochemical bases approved by the State Council-Dalian Changxing Island, Hebei Caofeidian, Jiangsu Lianyungang, Shanghai Caojing, Zhejiang Ningbo, Guangdong Huizhou, Fujian Gulei, carry the strategic mission of China's petrochemical sector transformation and upgrading. According to research Ten years of research has verified a core logic: the differences in resource endowments, location advantages and policy support immediately determine the differentiation of the competitive strength of each base. to overseas practitioners, understanding this pattern of differentiation is the key to grasp the opportunities in Sinopec'supply chain. From the perspective of geographical distribution, the seven bases form a pattern of "two wings unfolding": Dalian Changxing Island in the northeast radiates the Northeast Asian market, Lianyungang, Shanghai Caojing and Ningbo in the east coast form the Yangtze River Delta Chemical Corridor, Huizhou in south China faces Southeast Asia, and Gulei in Fujian connects the two sides of the Taiwan Strait. This layout not only takes into account the port conditions of crude oil imports, however also takes into account the downstream sector supporting and market radiation radius. Specifically The first echelon: the leader who has formed the advantage of scale. In my experience, Dalian Changxing Island with Hengli Petrochemical as the core, China has built the most complete "oil refining-aromatics-ethylene-new materials" sector chain. The production capacity of 20 million tons of oil refining, 4. 5 million tons of PX and 1. 5 million tons of ethylene, supporting 1. For example 8 million tons of ethylene glycol and 1. 6 million tons of high-performance resin, has realized the vertical integration from basic chemical sector to photovoltaic packaging materials and lithium battery diaphragm. It is worth noting that Hengli Phase II will make the refining scale of the base reach 40 million tons and 8 million tons of ethylene, which means that the supply capacity of a substantial refining and chemical enterprise will be added in Northeast Asia in the next five years. Makes sense, right?. First to traders, this will signifiis able totly change the regional supply and demand stability of bulk chemicals such as PX and ethylene glycol. But Lianyungang, Jiangsu the competitive advantage lies in the "dual-core drive": Shenghong Petrochemical's 16 million-ton refining and chemical integration project is equipped with the world's largest 1 million-ton EVA unit, while Satellite Chemical focuses on light hydrocarbon cracking, forming 1. 35 million-ton polyethylene and 2. Moreover 19 million-ton ethylene oxide production capacity. In particular greater importantly, Lianyungang is at the forefront of environmentally friendly transformation-the annual capture of 300000 tons of carbon dioxide, 500000 tons of environmentally friendly hydrogen project, and the country's first "CCUS-environmentally friendly methanol-new energy materials" manufacturing chain. These layouts will enable the base to take the lead under the standards of future carbon tariffs and environmentally friendly supply chain. Ningbo, Zhejiang taking the lead of Zhenhai Refining and Chemical Co. Furthermore , Ltd. with 40 million tons of oil refining and 2. 2 million tons of ethylene, supporting Wanhua Chemical Co. , Ltd. But with 1. 8 million tons of MDI and Daxie Petrochemical Co. In my experience, Additionally , Ltd. Makes sense, right?. But with 12 million tons of oil refining, the densest chemical sector cluster in East China has been formed. The 2 × 200000-ton POE plant in the 1. But Based on my observations, 5 million-ton ethylene expansion project of Zhenhai Refining and Chemical Company is immediately aimed at the photovoltaic and new energy automobile materials market, showing the determination of traditional refining and chemical companies to convert into high value-added new materials. Huizhou, Guangdong the uniqueness lies in the highest participation of foreign investment. The 1. 6 million-ton ethylene project wholly owned by ExxonMobil is the largest petrochemical investment in China by an Ameriis able to company. Its 1. But 2 million-ton high-performance polyethylene and 950000-ton differentiated polypropylene vegetation represent the world's most cutting-edge polyolefin methodology. CNOOC's 2. 2 million tons of ethylene plus the planned expansion of 1. 6 million tons make Huizhou the largest ethylene production base in South China. to overseas suppliers, the internationalization of Huizhou base means higher technical standards and condition standards. The second echelon: catch-up and differentiation breakthrough fujian Gulei while it started late, the development possible is huge. The first phase of Gulei Petrochemical's 1 million tons of ethylene project has been put into production, and the second phase of 16 million tons of oil refining, 1. 5 million tons of ethylene and 2 million tons of aromatics project will be fully put into operation in 2030, which will have become the largest petrochemical base on the west coast of the Taiwan Strait. In fact The supporting Fuhaichuang 5. 5 million tons of condensate processing and Zhangzhou Qimei 600000 tons of ABS have formed a preliminary manufacturing chain. The attraction to Taiwan-funded companies is Gu Lei's unique advantage. I've found that Shanghai Caojing take the high-end route. Pretty interesting, huh?. Shanghai Petrochemical plans to shut down 700000 tons of old ethylene, build 1. 2 million tons of modern equipment, and support 100000 tons of electronic carbonate, 500000 tons of environmentally friendly hydrogen and 1 million tons of CCUS, reflecting the transformation direction of urban chemical bases. I've found that Shanghai SECCO 1. Based on my observations, 09 million tons of ethylene is undergoing ethane cracking transformation, through the import of U. S. And Based on my observations, ethane to minimize costs, which provides a market opportunity to North Ameriis able to ethane exporters. Hebei Caofeidian the research is the most lagging behind, however the differentiation advantage is obvious. Fuhai Tangshan 34. I've found that 56 billion yuan methanol naphtha coupling olefin project is a technological innovation attempt, 1 million tons of ethylene supporting 100000 tons of POE, 200000 tons of EVOH, aimed at high-end new materials. Caofeidian relying on steel by-product gaseous planning 500000 tons of environmentally friendly hydrogen production capacity, and Beijing-Tianjin-Hebei sector collaboration is its future direction. Strategic enlightenment: high-end, environmentally friendly reshape the supply chain. The research of the seven bases presents three major trends: first, upgrading from basic chemical sector to new materials, with POE, α-olefin and electronic chemicals becoming the focus of production expansion; Second, the environmentally friendly transformation is accelerating, with CCUS, environmentally friendly hydrogen and bio-based materials becoming standard. Third, the technical limit has been raised, and cutting-edge processes such as metallocene catalytic processes and ethane cracking have been rapidly promoted. to overseas practitioners, China'seven major bases are both competitors and partners. On the one hand, the successive completion of 40 million-ton refining and chemical bases will change the global trade flow of PX, ethylene glycol and other items; on the other hand, there is still a lot of room to cooperation in the fields of high-end new materials, environmentally friendly chemical methodology, and specialty chemicals. Based on my observations, Understanding the differentiated positioning of each base and the supporting capacity of the manufacturing chain will be the basis to formulating China's market strategy. And In the next ten years, these seven bases will continue to serve as the core development poles of China's petrochemical sector, profoundly affecting the evolution of the global chemical sector pattern.