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China’s petrochemical industry is undergoing a major transformation and restructuring

2021-04-29View Original

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  “During the 14th and 15th Five-Year Plans period, China’s petroleum and chemical industry will enter an era of major transformation and restructuring in its mode of development. The major structural restructuring of industries will be reflected in all aspects of their development, with many of these restructurings featuring disruptive and fundamental changes. The entire industry should accelerate transformation, upgrading, and high-quality development through six strategic initiatives. This is what the reporter learned from the 2021 Petrochemical Industry Development Conference held in Qinzhou, Guangxi, from April 28 to 29.   Li Shousheng, president of the China Petroleum and Chemical Industry Federation, said in his speech that the world is currently undergoing profound changes on a scale not seen in a century; the instability and uncertainty in global economic development have increased further. **Governance models, economic organizational structures, as well as the multipolar pattern of global politics are all facing a series of major transformations and restructurings, and the high-quality development of the industry is confronted with new global challenges. Not only does anti-globalization have a significant impact on the development of the petrochemical industry ; The severe pressure to reduce carbon emissions also poses numerous challenges to the entire industry, including those related to costs, technology, processes, management, and competition from alternative energy sources ; The urgent need to improve the modernization level of industrial and supply chains also brings new requirements for the development of the entire industry.   According to Li Shousheng’s analysis, five new trends are emerging in the industry during the 14th Five-Year Plan period: for instance, a strategic major transformation of the energy sector is on the way ; A major structural restructuring of the chemical industry is imminent ; The low-carbon, green development approach will achieve a \"transformative\" leap forward ; The competitiveness of leading enterprises and industrial parks will be enhanced and reshaped ; “The win-win value chain of the new \"dual-circulation\" framework will shape the future in a new way.   In response, Li Shousheng said that, based on an overall assessment and forecast of the situation during the 14th Five-Year Plan period as well as the actual conditions of the industry’s development, the Petrochemical Federation has formulated guidelines for the industry’s development plan for this period. Through specific strategic measures in six areas, it aims to accelerate the transformation and upgrading of the entire industry as well as its high-quality development. First, it is to drive breakthroughs in technological innovation capabilities first ; Second, improve the modernization level of industrial and supply chains ; Third, fully leverage the exemplary role of low-carbon green transformation ; Fourth, actively build a new pattern of development featuring a \"dual circulation\" approach ; Fifth, it is necessary to earnestly carry out the cultivation and utilization of innovative talents in order to achieve high-quality development ; Sixth, it is to inherit and carry forward the fine traditions of the industry, and foster a robust work style for it in the new era.   Yu Wei, deputy director of the Raw Materials Industry Department at the Ministry of Industry and Information Technology, noted that during the 14th Five-Year Plan period, on the one hand, the domestically large-scale market provides ample opportunities for the development of the petrochemical industry ; On the other hand, the growth rate of demand for the main products of the petrochemical industry during the 14th Five-Year Plan period is expected to slow down, and the production capacity of some major chemical products will reach its limit. Especially as constraints related to resources, energy, and the environment increase, **the requirements for achieving carbon peak and carbon neutrality, along with the public’s demand for safe production, all impose higher demands on industry development. To promote the high-quality development of the industry, the Department of Raw Materials Industry will carry out five key tasks this year. First, continue to advance the relocation and renovation of hazardous chemicals enterprises ; Second, efforts will be made to promote the standardized development of chemical industrial parks. This year, guidance will be provided on the assessment and evaluation of such parks, and work will be carried out on compiling guidelines for their development and construction, in order to offer a basis for their high-quality growth ; Third, promote the development of key chemical new materials ; Fourth, advance the digital transformation of the petrochemical industry by exploring approaches to its deep integration with the industrial Internet ; Fifth, conduct research on pathways to carbon peak.   **Dai Fei, head of the Petrochemical Section in the Industry Development Department of the National Development and Reform Commission, said that during the 14th Five-Year Plan period, the petrochemical industry faces both opportunities and challenges. The entire industry must focus on technological innovation to enhance its core competitiveness, make efforts to address existing weaknesses, promote the development of new chemical materials, and accelerate the industrialization as well as widespread use of products that are not currently available in China ; Second, attention should be paid to energy conservation and consumption reduction to achieve green and low-carbon development. In line with the goals of reaching carbon peak and carbon neutrality, the National Development and Reform Commission is working on formulating implementation plans for reducing carbon emissions in the petrochemical industry. It will adopt measures tailored to different sectors, and by establishing higher standards for green development in this industry, it aims to drive the entire sector toward greater levels of green and low-carbon development ; Third, emphasis must be placed on safe development to strictly prevent risks in production and operation ; Fourth, focus on structural adjustment to raise the level of industrial development. It is necessary to adhere to a problem-oriented approach, focus on optimizing the layout of industrial and supply chains, and enhance the coordinated development of upstream and downstream sectors in the petrochemical industry. In emerging fields such as high-end chemical new materials and electronic chemicals, it is necessary to break through a number of key technologies and introduce new products in order to enhance the self-sufficiency in high-end chemical new materials.   At the meeting, Sun Weishan, vice president of the China Petroleum and Chemical Industry Federation, released the \"14th Five-Year Plan Development Guidelines for the Petroleum and Chemical Industry.\" These guidelines provide a comprehensive summary of the achievements and existing problems in the industry during the 13th Five-Year Plan period, analyze the new challenges facing the industry in the 14th Five-Year Plan period, and form a basic assessment of the development situation during that period. They outline the overall strategy, development goals, key tasks, and priorities for the industry’s development during the 14th Five-Year Plan period, while also specifying the long-term goals for the industry’s development by 2035.   The meeting also saw the release of plans for scientific and technological innovation in the petrochemical industry during the 14th Five-Year Plan period, as well as plans related to new chemical materials, modern coal chemical processing, and chemical industrial parks. Additionally, the development trends and key aspects of the fine chemicals industry during the 14th Five-Year Plan period were presented.   The delegates attending the meeting said that the content of the conference was highly aligned with **development strategies and the needs of the local petrochemical industry, serving as a guide for the high-quality development of the petroleum and chemical sector during the 14th Five-Year Plan period.   The conference was hosted by the Petrochemical Federation, with over 700 industry professionals in attendance.   The Forum on Carbon Peak and Carbon Neutrality, High-Quality Development of Oil and Gas, Petrochemicals, and Coal Chemicals, as well as the Forum on the Development of Hydrogen Energy and the Inaugural Meeting of the Hydrogen Energy Special Committee will be held tomorrow.   Text: Yu Hong, Wang Lijin ; Photo: Zhang Yu/Photo Source: China Chemical Industry News

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