Big news! Dongying Port designates key areas for the development of the petrochemical industry!

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Quality over quantity; only high-end projects are accepted. The Dongying Port Economic Development Zone held a investment promotion event in Shanghai recently, and released the \"Key Points for the Development of High-End Petrochemical Industries in the Dongying Port Economic Development Zone and Investment Promotion Plan\" (hereinafter referred to as the \"Plan\"). Thus, the strategy for developing a high-end petrochemical industry base in this area was established: using the crude oil processing capacity of existing local refineries as the \"starting point,\" and adding new large-scale projects to complete the \"mid-stage\" and \"end-stage\" components of the industry, in order to accelerate the creation of an industrial chain that goes from the starting point through the mid-stage to the end stage. At the same time, adhering to the principle of \"preferring quality over quantity and ensuring high standards in development,\" efforts are made to attract investment by targeting large-scale integrated refining and chemical production facilities, as well as projects related to ethylene, propylene, aromatics, and butane derivatives. By bringing in key projects, these industrial chains are continuously improved, with the goal of creating a high-end petrochemical industry base with international influence. With a high-end petrochemical base as its core, \"the petrochemical industry accounts for half of Dongying’s industrial output. Building a high-end petrochemical base in northern Shandong is a major decision made by the Shandong Provincial Party Committee and the provincial government, while developing this core area constitutes the ‘top priority project’ for Dongying’s transition to new forms of economic development.\" On March 6, Li Kuanduan, a deputy to the National People’s Congress and Secretary of the Dongying Municipal Party Committee, said that Shandong Province’s plan to develop a high-end petrochemical industry base in northern Shandong presents an important opportunity for Dongying to transform its existing industrial capabilities and foster new ones, while also placing significant responsibilities on Dongying. Li Kuanduan explained that today, Dongying has become one of the regions in China with the most concentrated petrochemical industry. The city’s annual processing capacity for crude oil is 72.2 million tons, accounting for 36% of Shandong Province’s total and 10% of China’s total. The \"Development Plan for the High-End Petrochemical Industry Base in Northern Shandong Province\" specifies that Dongying’s role is to serve as an integrated refining and chemical processing area. By leveraging its advantages in terms of ports and the existing petrochemical industry infrastructure, it is intended to develop refining and chemical processing projects with a capacity of tens of millions of tons, in line with international first-class standards. On November 21, 2018, Dongying City ** issued the \"Implementation Plan for the Major Project on Transforming Old and New Economic Drivers in Dongying City.\" This plan emphasizes the development of a high-end petrochemical industry base, aiming to expand and optimize industrial chains focused on the comprehensive utilization of aromatics and olefins, as well as new chemical materials. It also calls for the improvement of supporting infrastructure such as ports, networks, and industrial zones, with the goal of achieving integrated and coordinated development within these areas, as well as cluster-based growth. The aim is to make Dongying a key player in the development of high-end chemicals in the province and in the creation of a high-end petrochemical industry base in northern Shandong. In accordance with the latest arrangements in Dongying City, the Dongying Port Economic Development Zone, which has been recognized at the provincial level, will develop in coordination with the Hekou Blue Economy Industrial Park and the Lijin Coastal New Area. In line with the overall strategy of \"integration of port areas and a trinity approach,\" the three areas complement each other’s strengths, enhance and complete industrial chains, and develop in a differentiated manner. As a result, the industrial layout is more rational, and there is greater potential for development within these parks. Thanks to its location in the heart of oil fields and access to port resources, the Dongying Port Economic Development Zone is held in high regard. Yang Tongxian, director of the Management Committee of Dongying Port Economic Development Zone, said that in line with the goal of establishing a first-class domestic demonstration base for a green, circular, high-end petrochemical industry, the zone adheres to planning guidance and accelerates the implementation of a number of major projects. While optimizing the traditional petrochemical industry, it focuses on developing new chemical materials and high-end chemicals, thereby creating a high-end chemical industry cluster with a wide range of products and a leading scale. “A clear direction has been set through multiple initiatives. According to available data, the Dongying Port Economic Development Zone currently hosts 4 petrochemical enterprises: Wanda Tianhong with a production capacity of 5 million tons, United Petrochemicals with 5 million tons, Yatong Petrochemicals with 5.3 million tons, and Haikere Lin with 2.8 million tons. In accordance with the Plan, the region encourages refining and chemical enterprises to carry out upgrades and renovations, by installing new units for distillate hydrogenation, wax oil/heavy oil hydrocracking, naphtha hydrogenation, and heavy naphtha hydrocracking. By 2020, the region’s processing capacity is set to reach 20 million tons, providing a solid supply of raw materials for continuous reforming and combined aromatics production. It supports United Petrochemicals in expanding its oil processing capacity, raising the region’s total primary processing capacity to 25 million tons. In line with the provincial plan for the refining and chemical industry, which aims to consolidate large-scale operations while phasing out smaller ones, efforts will be made to collaborate with central state-owned enterprises as well as top 500 global chemical companies in order to introduce large-scale integrated refining and chemical projects with a capacity of over 15 million tons at an appropriate time. On this basis, the comprehensive utilization of ethylene and aromatic hydrocarbon raw materials is coordinated in accordance with the principle of \"using ethylene when appropriate and using aromatics when appropriate.\" Building an aromatic hydrocarbons industry chain based on the Dongying Weilian Aromatic Hydrocarbons project: first, using p-xylene as a raw material, developing projects for the production of purified terephthalic acid, and further expanding into the production of products such as polyethylene terephthalate ； Second, benzene extends downward into four branches: adipic acid, phenol/propanone, caprolactam, and styrene. Leveraging Mingyu Chemical’s 1.2 million tons per year ethylene production facility and Shandong Dongrun’s 300,000 tons per year MTO plant, a petrochemical industry chain focused on specialty fine chemicals will be developed, along with an acrylic industry chain centered on high-value-added polymers. At the same time, efforts are being made to actively develop the tetraolefin industry chain with high-end synthetic rubber as a key focus. To build an industrial chain featuring a \"strong start and a refined end,\" it is first necessary to strengthen the \"strong start\" part. Currently, a competition to upgrade technologies, improve facilities, and enhance quality is in full swing among the refining and chemical enterprises in the area. Wanda Tianhong has invested 500 million yuan in technological upgrades, while Haikelerin has invested 150 million yuan for such improvements… These technological upgrades will provide strong impetus for improving the quality of refined oil products in the park. Key projects provide support. On February 12, the Dongying Port Economic Development Zone held a meeting to launch the “Project Acceleration Year” initiative, focusing on advancing projects such as Weilian Chemical’s 2 million tons per year p-xylene production facility, Tianhong Chemical’s 450,000 tons per year propane dehydrogenation plant, and Qiheng New Materials’ 330,000 tons per year polymer materials production facility. The prominent aromatic compounds project of Dongying Weilian Chemical Co., Ltd. is considered the \"top project\" for the upgrading of Dongying’s petrochemical industry, and it has been included in this year’s work report of Shandong Province. According to the information published by the Dongying Environmental Protection Bureau, the project is located in the Dongying Port High-End Petrochemicals and New Materials Industrial Park. With a total investment of 11.4 billion yuan, its main construction components include 2×2.2 million tons per year of continuous reforming units, 2×700,000 tons per year of aromatic extraction units, 2×1 million tons per year of PX production units, as well as related supporting facilities. Once completed, it will have the capacity to produce 2 million tons per year of PX, 560,000 tons per year of benzene, and 120,000 tons per year of heavy aromatics. Zhejiang Hengyi Group’s 1.2 million tons per year high-quality caprolactam–polyamide integrated project is a key investment attraction in the Dongying Port Economic Development Zone; as a supporting project, Yatong Petrochemical’s 1.2 million tons per year continuous reforming and hydrocracking facility can supply raw materials to it on-site. Mingyu Chemical’s 1.2 million tons per year ethylene production project will, together with companies such as Tianhong and Weite, form a complete industrial chain that connects crude oil refining in the petrochemical industry with high-end chemical manufacturing, thereby making full use of crude oil. All levels of government in the Dongying urban area regard the implementation of major projects as a top priority in ensuring effective execution. “The p-xylene project should start construction as soon as possible; efforts should be made to enable the caprolactam project to meet the conditions for construction at an early date; and continued follow-up work should be carried out for the ethylene project. ”Guo Shunxian, director of the Dongying Development and Reform Commission, said. In addition, the environmental impact assessment notices have been issued one after another for projects aimed at improving the \"one source, multiple outputs\" industrial chain: Yatong Petrochemical’s 1.2 million tons per year naphtha comprehensive utilization project, Koruol Chemical’s 260,000 tons per year acrylonitrile project, and Qiheng New Materials’ 330,000 tons per year high-performance new materials project. These projects are currently in the process of approval and preliminary preparation. According to the plan, by 2020, the port area will develop an industrial system based on the integration of oil refining, ethylene production, and aromatic compounds, supplemented by the processing of various raw materials. It is aimed to achieve an industrial capacity of 30 million tons per year in oil refining, 2 million tons per year in olefins, and 2 million tons per year in aromatic compounds, thereby placing it among the top eight chemical parks in the country in terms of overall strength. By 2025, a high-end, clean industrial system will be established, with clean energy, organic raw materials, and synthetic materials as its core components, and specialty chemicals and fine chemicals as its distinguishing features. Five major industrial clusters for new chemical materials such as polyolefin resins, polycarbonates, caprolactam, nylon 66, and PET will be developed, creating world-class bases for the chemical and new material industries that will rank among the top five in China’s chemical parks.