China’s petrochemical stimulus plan to focus on refining and chemicals

Citation

(2009), "China’s petrochemical stimulus plan to focus on refining and chemicals", Pigment & Resin Technology, Vol. 38 No. 4. https://doi.org/10.1108/prt.2009.12938dab.020

China’s petrochemical stimulus plan to focus on refining and chemicals

Article Type: Industry news From: Pigment & Resin Technology, Volume 38, Issue 4

China’s upcoming stimulus package for the petrochemical sector will likely focus on oil refining and chemical industries, while oil and gas exploration will not be touched upon.

The package will more likely dedicate to the overall development of the sector in the next three years with emphasis on industrial restructuring and optimization of product mix, said sources with China Petroleum and Chemical Industry Association (CPCIA).

In terms of chemical industry, the stimulus package would stress adjustment and upgrading of industrial structure, support development of high-end chemical products, and encourage manufacturers to make high-tech and high-value-added products which could replace import ones, said the sources.

The package might also include plans for establishing a reserve system for petrochemical products, such as fertilizer reserve during agricultural off-peak seasons and commercial reserves of refined oil, said sources with CPCIA.

China’s petrochemical sector saw profit drop by 10 percent last year, totaling 499 billion yuan (73.06 billion US dollars), said the CPCIA report.

China’s refining capacity reached 342 million tons last year, and will increase 40 million tons in 2009, according to the Economic and Development Research Institute under China Petroleum and Chemical Corporation (Sinopec), China’s largest oil refiner.