On August 16, renowned ethylene expert and chief designer of Sinopec Engineering Construction Company, Wang Songhan, once again highlighted the drawbacks of the overly fragmented domestic ethylene projects. He pointed out that this decentralization leads to increased overall investment, repeated waste of public infrastructure, and heightened environmental risks.
According to Wang, excluding Taiwan, Hong Kong, and Macao, 12 provinces and cities in mainland China currently have ethylene facilities, accounting for 39% of all provinces. Additionally, 19 more provinces are planning or have proposed new projects, collectively making up over 60% of the country. These projects are spread across coastal areas in the east, Xinjiang in the west, Heilongjiang in the north, Guangdong in the south, and central regions like Chongqing, Hubei, and Shaanxi. Even within Liaoning, installations are scattered across multiple cities such as Liaoyang, Panjin, Fushun, and Dalian.
The disadvantages of this dispersed layout are clear. First, it increases capital expenditure. For instance, Shanghai Secco’s 900,000-ton ethylene project built in a chemical industrial zone benefits from shared public infrastructure, costing about 249 million yuan per 10,000 tons. In contrast, an 800,000-ton project with separate utilities costs 213 million yuan more per 10,000 tons.
Second, it causes redundant investments in public works. In the U.S., utilities like storage tanks and docks account for about 20% of total project costs, while in China, this figure ranges from 40% to 50%, meaning 20% is duplicated.
Third, it raises pollution risks. With nearly all major Chinese ports hosting refineries, oil leakage and seepage pose significant environmental challenges.
Wang suggested that inland old industrial bases should not be prioritized due to limited local markets and high transportation costs for exports. Drawing on international examples, he recommended focusing new ethylene projects along the eastern coast, particularly in the Luzhou Bay, Hangzhou Bay, and Bohai Rim areas. Developing large-scale vinyl sites in these strategic locations should guide China’s future ethylene growth.
Recent years have seen substantial investment in large-scale ethylene projects. If all reported projects are approved, China's ethylene production capacity could reach 10 million tons per year by 2010, with plans to expand to nearly 20 million tons annually.
Internationally, ethylene plants are typically concentrated in key regions. The U.S. has 45 plants, with 29 located in Texas’s Gulf Coast, accounting for 68% of national output. Los Angeles has 12 units, contributing 24%. Germany’s 21 units are mostly in Wessling, while Belgium’s four are all in Antwerp. Japan’s plants are clustered around Tokyo Bay, and Singapore’s are concentrated on Jurong Island. South Korea’s are mainly in Ulsan. Developed countries generally locate their ethylene facilities near ports and oil hubs, forming stable industrial bases.
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