Wang Jinxiang, deputy director of the State Council’s Western Development Office and the National Development and Reform Commission, recently emphasized that during the "Eleventh Five-Year Plan" period, the western region should prioritize the development of energy and chemical industries. The focus will be on establishing large-scale coal, oil, gas, hydropower, and thermal power bases, while accelerating the development of oil, coal, and natural gas resources. Additionally, key chemical projects such as coal-to-oil, methanol, dimethyl ether, ethylene, and fertilizer production will be prioritized to enhance industrial value. In terms of energy development, the plan includes initially forming oil and gas production bases in regions like Xinjiang, Qinghai, Shaanxi, Gansu, Ningxia, and Sichuan-Chongqing. It also involves building hydropower bases in the upper reaches of the Yangtze River, as well as coal and electricity hubs in northern Shaanxi, Mengxi, Ningxia, and Yungui. In the raw material sector, the production of lead and zinc in Gansu and Yunnan, vanadium and titanium in Sichuan, and rare earths in Inner Mongolia will see significant growth. Meanwhile, Qinghai's 1 million-ton-per-year potash fertilizer project is expected to become a major domestic production base, and Guizhou and Yunnan’s phosphate fertilizer enterprises will boost China’s self-sufficiency in high-concentration fertilizers beyond 50%. During the same period, Shaanxi aims to accelerate the transformation of coal, oil, gas, and salt into chemical products. The province will focus on coal liquefaction, methanol, methanol-to-olefins, petrochemicals, and salt chemicals, with the goal of increasing added value. By 2010, the Northern Shaanxi Energy and Chemical Industry Base is expected to have an annual capacity of 15 million tons of crude oil, 15 million tons of refined oil, 10 billion cubic meters of natural gas, 200 million tons of raw coal, 6 million tons of methanol, and 4 million tons of coal-based oil, solidifying its role as a crucial energy hub in China. Gansu plans to leverage the West-East Gas Pipeline project to upgrade its petrochemical industry. By 2010, it aims to achieve a crude oil processing capacity of 20 million tons per year, 700,000 tons of ethylene, 1.13 million tons of polyolefins, and 265,000 tons of synthetic rubber. Lanzhou is set to become a key oil production and distribution center in the west, as well as a leading base for lubricants, synthetic resins, and synthetic rubber. Ningxia is also focusing on expanding its energy and chemical industry, especially around the Ningdong base. It plans to build a coal indirect liquefaction project with a total capacity of 8 million tons per year (with an initial phase of 3.2 million tons), a coal-based dimethyl ether project of 830,000 tons per year, and a coal chemical project producing 1.8 million tons of coal-based methanol and olefin polymers. These initiatives are part of a broader strategy to drive economic growth and industrial modernization in the western region.

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