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 also promoting the growth of oil, coal, and natural gas sectors. Additionally, key chemical projects such as coal-to-oil, methanol, dimethyl ether, ethylene, and fertilizer production will be accelerated to enhance industrial value.
In terms of energy development, the plan includes creating initial oil and gas production bases in Xinjiang, Qinghai, Shaanxi, Gansu, Ningxia, and Sichuan-Chongqing. It also aims to develop hydropower in the upper reaches of the Yangtze River and establish coal and electricity bases in northern Shaanxi, Mengxi, Ningxia, and Yungui. In the raw material industry, regions like Gansu and Yunnan will see rapid growth in lead and zinc, while Sichuan will focus on vanadium and titanium, and Inner Mongolia on rare earths. Qinghai’s 1 million-ton-per-year potash fertilizer project is expected to begin operations, becoming a major production base for potash in China. Meanwhile, Guizhou and Yunnan are working to upgrade their phosphate fertilizer enterprises, aiming to increase domestic self-sufficiency in high-concentration phosphate fertilizers to over 50%.
During the "Eleventh Five-Year Plan," Shaanxi is pushing for the transformation of coal, oil, gas, and salt into chemical products. Key areas of focus include coal liquefaction, methanol, methanol-to-olefins, petrochemicals, and salt chemicals. By 2010, the Northern Shaanxi Energy and Chemical Industry Base is expected to reach 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. This will position it as a vital energy hub and a large coal chemical base 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, an ethylene production capacity of 700,000 tons, a downstream polyolefin production capacity of 1.13 million tons, and a synthetic rubber output of 265,000 tons. The province is also building Lanzhou into a key center for oil production and distribution, lubricants, and synthetic resins, as well as the country's largest synthetic rubber production base.
Ningxia is focusing on expanding and strengthening its energy and chemical industry, especially around the Ningdong base. It is developing 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 aim to solidify Ningxia's role in the national energy and chemical landscape.
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