Detailed rules for the petrochemical revitalization plan are likely to be released at an appropriate time in the near future

Thread Content

The latest updates indicate that since the executive meeting of the State Council reviewed and approved in principle the \"Plan for the Revitalization and Adjustment of the Petrochemical Industry,\" the specific details and accompanying measures are still being finalized at full speed, with their release scheduled for an appropriate time. 　　Plan for the level of expectations “China** introduced revitalization plans for ten industries including the petrochemical sector during the financial crisis, which was very timely and proved to be of great help to petrochemical companies in overcoming difficulties. ”Recently, Michele Volpi, president and CEO of Fulcrum, a manufacturer of specialty chemical products, said that although it is still difficult to assess the impact of the financial crisis on the petrochemical industry at present, China’s plans to revitalize its petrochemical sector offer hope to the industry. Michele Volpi told reporters, “We will absolutely not lay off employees at this time; on the contrary, Folli Follie must take responsibility and increase its investments in China.” ”It is understood that Fule Company’s new Asia-Pacific Regional Technology Center, located in the Zhangjiang High-Tech Park in Shanghai, has been officially launched, and a new chemical plant will be built this year. 　　“Foreign investors can participate in this program by purchasing shares of listed companies, or by investing directly in joint ventures or wholly foreign-owned enterprises in these industries. ”Li Jiangang, a senior lawyer at Leiman Law Firm, said that with China’s adjustment and revitalization plans for 10 key industries, as well as the implementation of policies aimed at boosting domestic demand, many new enterprises will emerge in these industries that are being encouraged and supported. 　　“The detailed regulations on the petrochemical industry will further elaborate on the previous six principles; there should be no major breakthroughs, as they are primarily intended to prepare for the introduction of the 12th Five-Year Plan. ”Lin Boqiang, director of the China Energy Economics Research Center at Xiamen University, said that the introduction of detailed regulations for the petrochemical industry will not have an immediate impact on companies’ ability to cope with the current financial crisis, but it does outline the long-term vision for this industry. 　　Reserves are a priority. “A petroleum reserve policy will be introduced.” ”Lin Boqiang believes. 　　According to available information, China has currently built four strategic crude oil reserve bases in the first phase and has begun storing oil there, while the construction of eight reserve bases in the second phase is also underway. With current international oil prices at around $40 per barrel, once the favorable policies regarding oil reserves outlined in the petrochemical regulations are introduced, it will greatly promote the development of oil reserves in our country. 　　“Now is indeed a great time for oil reserves. ”Lin Boqiang said, “It’s 40 dollars per barrel now, and it will more than double in the future.” ”He believes that since CNPC and Sinopec possess the largest reserves, these two major petrochemical companies will be the biggest beneficiaries once the rules regarding oil reserves are introduced. 　　Apart from the two giants, private oil companies have also seen hope. Recently, Zhao Youshan, president of the Petroleum Distribution Professional Committee of the China Federation of Industry and Commerce, said that when suggesting to the National Development and Reform Commission that the idle oil storage facilities of private oil companies be included in the refined oil reserves, 6 local refineries with a storage capacity of over 200,000 tons were selected as the first batch of candidates, with a total storage capacity of around 2.3 million tons. ““Storing oil with the people” is becoming a reality. 　　Integration in the oil refining sector is inevitable. With the introduction of plans for the petrochemical industry, a wave of mergers and acquisitions led by two major players is bound to occur, and many local oil refineries will face a life-or-death struggle. During **this year**, Zhang Guobao, head of the Energy Bureau, said that China’s refining industry will undergo another round of consolidation as small refineries are phased out or acquired by larger oil refining companies. 　　The plan for the revitalization of the petrochemical industry clearly states that it is necessary to control the total production volume and phase out outdated production capacities; approval should be stopped for coal chemical projects such as those related to coke and calcium carbide that aim solely at expanding production capacity, in order to firmly curb the uncontrolled growth of the coal chemical industry. The integration of the petrochemical industry is bound to trigger a \"war of acquisitions and counter-acquisitions\" between CNPC, Sinopec, CNOOC, and China’s numerous local oil refining companies. 　　It is understood that in Shandong, CNOOC is currently integrating its small refineries located in cities such as Dongying and Weifang ； Sinochem Group has acquired some small refineries in Jinan, while CNPC is in talks with refineries in Binzhou, Shandong. It is undeniable that many refineries across the country are facing difficulties in recent years due to constraints on crude oil supplies; especially with high oil prices, they rely almost entirely on the two giants, CNPC and Sinopec, for their oil supply. Now that oil giants want to bring them on board, this might not be a bad solution for these small local refineries. 　　However, some refineries in certain regions have said they are unwilling to hand over the enterprises they have built with great effort, let alone lose China, their largest energy-consuming market. 　　“Growing stronger and larger is the established strategy; in the future, it is imperative for China’s refining industry to expand on a larger scale. ”An industry insider said that with the introduction of new policies, smaller refineries with weaker capabilities will surely be eliminated by the new market environment. And the coal chemical projects that were launched in large numbers before are also doomed to have no future.