Natural gas chemical industry

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How to curb the impulse for reckless chemical industry expansion? 　　Although the 2007 Natural Gas Utilization Policy and recent policy guidelines have made it clear that the development of natural gas-based chemical industries is not encouraged, local authorities in areas where natural gas is abundant still have the urge to expand such industries; it seems that policy guidance is not very effective in this regard. 　　The Natural Gas Utilization Policy explicitly stipulates that the development of urban gas should be promoted as a priority, the use of gas in the chemical industry should be restricted, and the production of methanol from natural gas is prohibited ； The construction of base-load gas power plants in areas where large coal mining bases are located is prohibited ； It is prohibited to build LNG projects using natural gas produced from large and medium-sized gas fields as raw material. The policy also suppresses demand for industrial gas by raising its price, reduces the proportion of natural gas used in the chemical industry, as an industrial fuel, and for power generation, thereby promoting a more comprehensive and cleaner use of energy. 　　This trend has led to a significant contraction in the natural gas-based chemical industry, with most such companies seeking to shift to coal-based chemical production. In October of this year, Sichuan Province issued the \"Sichuan Province Petrochemical Industry Adjustment and Revitalization Action Plan (2009–2011)\", which specifies that natural gas chemistry and petrochemistry will be taken as key areas for development. Approximately 82.5 billion yuan will be invested in 137 projects aimed at establishing the largest natural gas chemistry industry base in the country. Wu Shen Banner in Inner Mongolia takes advantage of the resource potential of the Sulige integrated gas field, aiming to establish itself as the largest natural gas chemical industry base in western China by the end of the 11th Five-Year Plan period, with an output value exceeding 10 billion yuan. 　　Analysts point out that **the suppression of natural gas-based chemical industries is driven by considerations related to the use of energy resources and the shortage of natural gas. For local areas, exporting natural gas does not bring many benefits, whereas developing chemical industries locally can generate profits, create jobs, and boost GDP, yielding tangible advantages; as a result, this tendency is difficult to curb.** 　　“Some new projects dare to start construction without even securing a gas supply; it’s really unclear what will happen if they can’t get gas once the construction is complete. ”A relevant official from CNPC expressed concern over this. 　　This is not unfounded worry. Reporters from China Securities Journal have learned that six large fertilizer manufacturers and 38 smaller fertilizer enterprises in Sichuan and Chongqing have mostly carried out capacity expansion upgrades, resulting in a 25% increase in their gas usage capacity. At the same time, various regions are also attracting investment to establish new ammonia synthesis projects. In 2009, projects such as the construction of a 450,000-ton/year ammonia synthesis plant at Jianfeng, a new 200,000-ton/year ammonia synthesis plant by Sinochem Fuling Chemical, and a new 300,000-ton/year ammonia synthesis plant in Dazhou were under way. For most of these projects, gas supply sources have not been secured yet; once they are completed, they will put pressure on the gas supply companies. If the gas supply is insufficient, it will affect the operational capacity of these plants, resulting in a significant reduction in their economic efficiency. 　　Due to insufficient gas supply, many chemical enterprises relying on gas had to suspend production for short periods in the first half of this year due to a gas shortage. Yuntianhua was shut down for nearly 1 month, Lutianhua was also shut down for maintenance for about 2 months, while Chitianhua was closed for as long as 74 days.