AchemAsia 2013 – Opening Press Conference, 13 May 2013


Progress of the Petrochemical and Coal Chemical Industry in China

Yang Yuanyi

Vice President and General Secretary of CIESC


Press Release at ACHEMASIA' 2013

May 13, 2013


The 9th International Exhibition and Conference on Chemical Engineering and Biotechnology (ACHEMASIA 2013) sees its grand opening today. It is a festive occasion for both the businesses and the people, from China and overseas, working in the petroleum and chemical industry.

China's petroleum and chemical industry has made a great advance in 2012, with crude oil processing volume of 468 million tons at an annual growth rate of 3.7%, refined oil production of 282 million tons at an annual growth rate of 5.5%. China produced 207 million tons of crude oil, and imported 271 million tons in 2012, making its import dependency 57%.

In 2012, China achieved a production of 14.87 million tons of ethylene, 52.13 million tons of synthetic resin, 34.5 million tons of synthetic fiber, and 3.79 million tons of synthetic rubber. Meanwhile, the overall energy consumption and water consumption in refinery and ethylene production continue to drop. For example, Zhenhai Refinery achieved a new level of overall energy consumption for refinery in November 2012, which is 43 kg standard oil per ton, and a low overall energy consumption for ethylene production in 2012, which is 543.9 kg standard oil per ton, ranking among the most advanced in the world.

The country has also speeded up its upgrading of cleaner refined oil. Since the July of 2010, the industry has been required nationwide to produce and offer gasoline with sulfur content less than 150 ppm. In May 2012, the gasoline and diesel produced and supplied for Beijing market was upgraded to the even cleaner Beijing V Standard, which is less than 10 ppm sulfur.

The development of bio fuel is also in the fast lane. China's annual fuel ethanol production has been more than 1.8 million tons consecutively for several years, third only to US and Brazil. Several bio diesel commercial plants have been started up. The production technology for bio aviation kerosene has been developed by Sinopec. The successful trial flying of China Eastern Airlines' Airbus 320 fueled with the bio aviation kerosene supplied by Sinopec on April 24 this year, demonstrates that China is able to supply its self-developed bio aviation kerosene to commercial passenger planes.

China's coal chemistry also leads the world. After the start-up of coal-to-olefin projects in Shenhua Baotou, Datang Duolun, Shenhua Ningmei, and Sinopec Puyang, the Ningbo Heyuan Project started up in February 2013 is the latest one, making the commercial coal-to-olefin (both MTO and MTP) plants 5 total, with an annual total olefin capacity of 2.3 million tons.

Also worth mentioning is that Sinopec has independently developed and constructed a 200 KTA MTX (toluene methanol methylation to xylene) plant in Yangzi Petrochemical. Its successful start-up in December 2012 paved a new route for rich xylene by methanol route.

The related Chinese enterprises also give priority to the capture and storage of carbon dioxide (CCS) to solve the increasing problem of CO2 emission caused by coal to oil and coal chemistry. Sinopec has offered its own technology and built CO2 capture and purification facilities for Shenli Power Plant, China Resources Shanghai, and China Resources Beijing. The 100 KTA CCS project in Shenhua Erdos Coal to Oil Branch Company was commissioned in February 2013, already enabling the total capture and storage of over 60 thousand tons of CO2.

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