Guangdong should actively improve the petrochemical industry chain

With the commencement of the 20 million tons/year oil refinery project in CNPC Guangdong Jieyang, it means that Guangdong has a total refining capacity of approximately 43.5 million tons. In the future, Guangdong may become a new petrochemical base in China. Industry sources reminded that the petrochemical industry in Guangdong should be alert to structural overcapacity.

Guangdong proposed that by 2015, the province's crude oil processing capacity should reach 100 million tons/year, and the annual output of refined oil products should exceed 50 million tons. At present, there are Maoming Petrochemical 13.5 million tons / year, Zhanjiang Dongxing 5 million tons / year, Guangzhou Petrochemical 13 million tons / year, Huizhou Daya Bay 12 million tons / year and many other refineries, the total refining capacity of about 43.50 million tons.

In addition, Sinopec and CNOOC are also actively building new and expanding oil refining projects, including a Sino-Korean joint venture with a refining capacity of 15 million tons/year, and a CNOOC Huizhou Refinery (Phase II) project.

According to industry sources, while the refinery capacity in Guangdong is doubled, the surplus of refineries and the drop in operating rate may also go hand in hand.

Statistics show that 2013 and 2014 will be the peak period for the nation's new refineries to be put into production, and China will fully enter the stage of excess refining.

The commodity information agency Treasure Island predicts that by 2020, the nation’s refining capacity will exceed 30 million to 40 million tons.

Industry insiders reminded that Guangdong should actively improve the petrochemical industry chain. After refining the source of the petrochemical industry, it needs to develop fine chemical products downstream.

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