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Petrochemical Industry

PETROCHEMICAL IN CHINA

PETROCHEMICAL IN SICHUAN AND CHENGDU

MAJOR PLAYERS IN CHENGDU

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PETROCHEMICAL IN CHINA

In 2006, file value of the petrochemical industry output soared by 26.7% to reach RM3 4.2 trillion and the value-added of industrial output surged by 23.6% to attain RMB 1.2 trillion. Its total profits increased by 18.3% to reach RMB 437.7 billion and fixed asset investments surged by 28.3% to reach RMB 519.5 billion. The total value of imports and exports soared by 20.7% to hit USffi245.73 billion.

In 2006, the domestic demand for refined oil products maintained a moderate growth. According to statistics from China Petroleum Chemical Co., domestic consumption of refined oil products Inclusive of gasoline, diesel and kerosene including jet fuel) in 2006 was 174.4 mill on tons, up by 6.1% compared with 2005. Due to the tight control over the domestic prices, there was a significant spread between domestic and international prices of refined oil products, thereby causing a dramatic reduction in the refined products supplied by local refineries. International oil prices dropped in the fourth quarter of 2006. As a result, the local refineries resumed production and light supply of refined productions was slightly alleviated.

In 2006, domestic demand for chemicals showed steady growth. The consumption of synthetic resins, synthetic fibers and synthetic rubbers Increased by 7.8% over the last year. Domestic ethylene equivalent consumption also rose by 4.3% over the previous year. Domestic chemical prices followed a similar trend as that of the international market with an increase in overall prices.

By the end of 2005, China issued a new pricing regulation for natural gas and increased the ex-factory price of natural gas. In 2006, domestic supply of natural gas failed to meet demand, driving up oil prices significantly. However, this new pricing measure was able to muffle the runaway increase in demand for natural gas to some extent.

By the end of 2006, China’s petrochemical industry had aggregate assets of RMB 3.21 trillion, representing 19.9% growth compared with last year. The total petrochemical assets in Sichuan Province soared by 25.2% to reach roughly RMB 103.66 billion, ranking 12th among the 31 provinces and municipalities. The total assets in the Sichuan province grew faster than the national average, evident when one compares its growth of by 25.2% to the national average of 19.9%.

Figure 14.1: Regional Distribution of Total Assets End -2006 (RMB billion)

The total revenue in China’s petrochemical industry soared by 27.2% to attain RMB 2.16 trillion in 2006. Sichuan Province realized approximately RMB 63.6 billion in revenue in the petrochemical industry, ranking th9 among all the provinces and municipalities. Shandong and Jiangsu Province dominated the market in terms of total revenue, representing about 38.86% of the total market share.

Figure 14.2: Regional Distribution of Total Revenues as of End-2006 (RMB billion)

In 2006, China’s overall petrochemical industry made a profit of RMB 437.7 billion, 18.3% up compared with the previous year. The net profit in Sichuan province surged 61.5% to achieve RMB 7.2 billion, ranking 12th across the country.