Market Survey on Ethylene Industry in China
--- A preliminary research
Released
Date: June 2006
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Researched
& Prepared by:
Guangzhou
CCM Chemicals Co., Ltd.
Guangzhou,
P. R. China
Updated
in October 2002
Copyright by Guangzhou CCM Chemicals Co., Ltd.
(P. R. China)
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Content
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- X-1. Yangzi |
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- X-2 Yanshan |
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- X-3 SINOPEC Shanghai |
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- X-4 Qilu |
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- X-5 Maoming |
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- X-6 Guangzhou
Ethylene |
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- X-7 Tianjin |
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- X-8 Zhongyuan |
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- X-9 Dushanzi |
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- X-10 Fushun |
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- X-11 Jilin |
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- X-12 Lanzhou |
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- X-13 Liaoyang |
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- X-14 Daqing |
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- X-15 Panjin |
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- X-16 Beijing Dongfang |
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XI-2 BP Amoco-Shanghai |
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XI-3 Yangzi-BASF |
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…… (Omitted)
The aim of
this report is:
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To
outline the Chinese ethylene market from aspects of production, import,
derivative, policy, etc.
-
To
summarize the situation of major Chinese manufacturers
-
To
provide assistance to understanding the Chinese market
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By
2002 there are 18 ethylene processes in China. The total capacity is
5,636KT/year.
-
The
actual production of ethylene in 2000 and 2001 is 4,352KT and 4,698KT,
respectively.
-
The
demand for ethylene in 2001 is calculated to be 12,901KT. The major end use
sections and demand areas are PE, PVC and ethyl glycol.
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Three
largest ethylene joint ventures have been activated since 2001. They are Shell-Southern
Sear Project, BP-Amoco-Shanghai Project and Exxon-Mobil-Aramco Fujian Project.
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In
the following 4 years the ethylene capacity in China will increase by
5,534KT/year, 3,700KT/year from the newly JVs and 1,834KT/year from the
existing Chinese producers.
-
By
2005 the ethylene capacity in China will be 11,170KT/year while the demand for
ethylene at that time is estimated to be 18,500KT/year.
I. Production History of Ethylene in
China
The
ethylene industry in China started in the end of 1950s. The original scale was
quite small.
Entering
1970s, China began to introduce several large-scale ethylene processes from
overseas. In the end of 1970s, Beijing Yanshan, Shanghai Golden and Liaoyang
Petrochemicals introduced ethylene production technologies from overseas. This
symbolized the mass ethylene production in China.
In the end
of 1980s, China introduced four ethylene processes. They are Daqing, Qilu,
Yangzhi and Shanghai. The installment of these processes made the ethylene
industry grew fast in China.
In the
early 1990s, Jilin and Maoming each introduced 300KT/year ethylene process. In
the same time some medium and small-scale ethylene processes had been
installed. The capacity of these processes are 100~150KT/year. These processes
include Beijing Dongfang, Tianjin United, Xinjiang Dushanzi, Zhongyuan and
Guangzhou Ethylene.
Table I-1
Ethylene production from 1970-1996 (Unit: KT)
|
Year |
Capacity |
Production |
GDP increment (%) |
|
1970 |
Less
than 70 |
30.3 |
N/A |
|
1979 |
N/A |
434.9 |
N/A |
|
1980 |
610 |
489.9 |
N/A |
|
1981 |
N/A |
505.8 |
N/A |
|
1982 |
N/A |
564.9 |
N/A |
|
1983 |
N/A |
653.7 |
N/A |
|
1985 |
720 |
652.1 |
N/A |
|
1986 |
1,020 |
659.2 |
N/A |
|
1987 |
1,612 |
937.2 |
N/A |
|
1988 |
1,635 |
1232.1 |
N/A |
|
1989 |
1,907 |
1395.7 |
N/A |
|
1990 |
2,092 |
1571.6 |
N/A |
|
1991 |
2,200 |
1760.6 |
9.2 |
|
1992 |
2,211 |
2003.4 |
13.6 |
|
1993 |
2,231 |
2027.2 |
13.5 |
|
1994 |
2,362 |
2129 |
11.8 |
|
1995 |
2,951 |
2392.3 |
10.2 |
|
1996 |
3,711 |
3034.4 |
9.7 |
By 1996,
the production capacity of ethylene in China reached to 3,711KT/year, listed
next only to Japan in Asia.
During 1990-1999, the average annual growth rate of GDP in China is 10.3%. The annual growth rate of ethylene production is 12.0%; while the annual growth rate of ethylene consumption is 17%. No doubt the Chinese production could not meet the demand so quite large quantity of ethylene derivatives had to be imported in order to close the gap.
II. Production of Ethylene in the
Recent Years
(1997 ~ Nowadays)
II-1 Oversea Situation in the Past Years
For
details information please first refer to table II-1.
Since
1997, China no longer introduced ethylene processes from overseas. The Chinese
people focused on:
-
technical
digestion and improvement,
-
capacity
enlargement. The activities lasted till nowadays,
-
optimization
of the raw materials structure for the ethylene production.
At present
there are total 18 ethylene processes in China. China Petrochemical Corp
(SINOPEC) owns 9 processes while China National Petroleum Corp (CNPC) owns 7
processes. The reset ethylene processes are independent ones. The capacity
nowadays (2002) is 5,636KT/year. The production of ethylene in China is 4,790KT
in 2001, among which SINOPEC shares 60.82% while CNPC shares 31.62%.
Some large
ones like Yanshan, Qilu, Yangzhi, Daqing, has been, or are enlarging the
capacity. While some medium ones like Tianjin, Zhongyuan, Dushanzi have been
improving production technology to lower the production cost.
The
average ethylene yield in 2001 is 31.29%. The total processed naphtha oil is
9,825KT. Other operations parameters like processing loss, material loss,
energy cost, product quality and running stability, are better than that of in
2000.
II-2. Summary
for the Situation in 2001
Sinopec
-
Total
production
In 2001,
the total ethylene production in Sinopec is 2,913.50KT, 1.46% increment over
2000.
-
Ethylene
Yield
The
average ethylene yield in the Sinopec in 2001 is 30.64%, higher than that of in
2000 (30.50%). The ethylene yield from Sinopec Shanghai and Yanshan increased
substantially over 2000.
-
Facility
loss rate
The
average facility loss rate in 2001 is 0.73%, 0.06 percentage point decrement
over 2000. The ethylene loss in Maoming, Qilu and Shanghai 1# has been
controlled within 0.4%.
-
Combustion
& Powder Utility
In 2001
the average utility in Sinopec is
-
Others
In 2001,
the non-planed halt in the ethylene factories have been controlled greatly.
Sinopec Shanghai 1# ethylene line has not non-scheduled halt accident for 3
years. Yangzi and Qilu did not have non-scheduled halt in 2001.
On Dec 6,
2001, the naphtha pipeline from Tianjin Nanjiang Port to Yanshan has put into
commercial usages. It makes it convenient for the optimization of ethylene raw
materials in Northern China.
In 2002
SINOPEC plans to produce 3,320KT of ethylene.
CNPC
In 1999
the total ethylene in CNPC is 1,458KT. By 2001 the total ethylene capacity in
CNPC reaches to 1,550KT/year.
The total
ethylene output in 2001 is 1,571KT, increasing 57KT over 2000.
In 2001
the average ethylene yield in CNPC is 32.39%, increasing 0.19% over 2000.
In 2001,
the manufacturing loss rate during the producing of ethylene is 1.34% (in 1999
it was 1.66%).
In 2000
and 2001 the average utility rate in CNPC is
In 2001
there are totally 11 times of non-scheduled halt in CNPC. Liaoyang halted
twice.
In recent
years, CNPC increase the consumption ratio of light oil (hydrocarbon). In 1998,
the consumption of light hydrocarbon is 52.4% while in 2000 it is 60%.
In 2002
CNPC plans to reach the following target:
-
ethylene
yield: 32%
-
utility:
-
ethylene
loss: 0.9%
