Larger scale, bigger--Reflections on several issues of China's ethylene industry (II)

Only with scale can there be benefits. This is a consensus reached by various countries in the development of ethylene.
The largest ethylene plant that has been commercialized in the world today is Canada's 1.3 million-ton/year ethylene plant, which was put into operation in 2000. The plant is designed from American companies using ethane, propane, and NGL as raw materials. The largest ethylene plant with naphtha and light diesel as raw materials is the 1.2 million-ton/year ethylene plant located in Texas, USA, which was completed in 1999. In addition, the third set of ethylene units announced by Formosa Plastics of Taiwan, with naphtha as raw material, has a scale of 1.2 million tons/year and is currently undergoing basic design. By the end of 2005, it is expected to start production.
The vast majority of ethylene plants in the world that have been put into production in the last two years are over 600,000 tons/year. Among them, Iran has the largest number of constructions and the largest scale, with the largest scale reaching 1.4 million tons/year. In general, ethylene plants that have been commercialized have a maximum capacity of 1.3 million tons/year using light hydrocarbons as raw materials, and a maximum of 1.2 million tons/year with liquids as raw materials. The largest scale of ethylene plants under construction or proposed is 1.4 million tons/year.
There is no doubt that choosing to build a large-scale ethylene plant can give full play to the advantages of the economic scale of the plant. According to statistics, the cost of ethylene has decreased significantly with the increase in the size of the equipment. The 1 million tons/year ethylene can reduce the cost by about 25% compared with the 500,000 tons/year ethylene unit. The 1.5 million tons/year ethylene can reduce the cost by about 40% compared with the 500,000 tons/year ethylene. The 1.5 million tons/year ethylene and 1 million tons/year ethylene can reduce the cost by about 15%.
Therefore, the scale of ethylene plants in China must take a large-scale development path. This is not only a concentrated reflection of the development law of the ethylene industry, but also an inevitable trend of the development of modern science and technology. At the same time, the advantages and benefits brought by large-scale production are also the main internal determinants of market competitiveness. Therefore, we must not put the cart before the horse and consider what the “moderate” size of the local resources and market conditions are, and ignore the factors of scale effect. We must proceed in accordance with the economic laws and requirements for effectively improving international competitiveness, create necessary conditions, and achieve large-scale ethylene production. In this regard, Korea, Taiwan, Singapore, and even Thailand, Indonesia, India and other countries can learn from their experiences.
China's ethylene industry began in the late 1950s and early 1960s with the introduction of the first square box cracking furnace and later-stage sand cracking furnace ethylene plant from the former Soviet Union. In the 1970s, five sets of 300,000 t/y tubular pyrolysis furnace ethylene plants were introduced. From the 1980s to the early 1990s, several sets of small ethylene plants with a scale of 120,000 to 160,000 tons/year were introduced. In the early 1990s, two sets of 300,000 tons/year ethylene units were introduced in Maoming and Jilin. At the same time, a batch of 300,000 tons/year ethylene plants and small ethylene plants were also transformed. At present, there are 18 ethylene production enterprises across the country, with 20 sets of ethylene units. In 2004, the total output was 6.12 million tons.
According to preliminary analysis, it is feasible for China to build an ethylene plant of 1.3 million to 1.5 million tons per year. On the one hand, due to the fact that many ethylene plants with a capacity of 1 million tons/year or more have been used in liquid production as feedstocks; on the other hand, through the preliminary exploration of large-scale ethylene plant equipment, technological progress and experience Accumulation and large-scale ethylene plants can be solved.
The author proposes that in the future, the scale of newly installed ethylene plants in China should be in the range of 800,000 to 1.3 million tons per year, and conditions may be larger. We must not engage in ethylene plants below the 800,000 tons/year scale. Otherwise, the construction will be too small. We must also reconstruct energy expansion, delay time and ergonomics, and it is not conducive to the healthy and sustainable development of China's ethylene industry. For those small-scale, high energy consumption, backward technology, poor economic efficiency, no hope for the transformation of small devices should be closed. It is necessary to proceed according to the laws of economic development and the requirements for enhancing international competitiveness, create necessary conditions, achieve large-scale ethylene plants, promote the rapid, healthy and sustainable development of China's petrochemical industry, and effectively improve its international competitiveness.
The author of this article is a well-known ethylene expert in China, a member of the Expert Committee of China International Engineering Consulting Company, a member of the first Beijing Municipal Committee of Experts, and the chief designer of China Petrochemical Engineering Construction Company.

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