Ethylene is a cornerstone of the petrochemical industry, serving as a fundamental raw material for producing ethylene, propylene, butadiene, and aromatic compounds. The scale of ethylene production is widely recognized as a key indicator of a nation's petrochemical development level. Over the past four decades, China has made significant progress in its ethylene industry, ranking fourth globally and entering the league of major petrochemical nations. Despite this achievement, there are still gaps in the rationality and efficiency of plant size and layout.
For example, how to build large-scale ethylene plants under current technological and national conditions remains a challenge. What technical obstacles exist? How can China's ethylene industry become more efficient and cost-effective? These questions have drawn considerable attention from both government agencies and industry professionals.
Currently, China’s ethylene industry is spread across various provinces and cities, with major companies leading the way. This fragmented approach leads to inefficiencies in public utilities, infrastructure, and environmental management. It also increases investment costs and weakens international competitiveness.
China has 31 provinces, municipalities, and autonomous regions (excluding Taiwan, Hong Kong, and Macao). Out of these, 12 already have ethylene facilities, covering about 39% of the country’s administrative area. With new projects planned, more than half of the regions may soon develop their own ethylene industries. Some provinces even have multiple facilities, such as Liaoning, which already operates three petrochemical bases and plans to add another in Dalian. This scattered layout raises concerns about resource allocation and sustainability.
In contrast, global ethylene production is highly concentrated. In the U.S., for instance, most ethylene plants are located in Texas and Los Angeles, where over 60% of the total units are found. This concentration allows for better utilization of shared infrastructure, lower costs, and greater efficiency.
The concept of centralized petrochemical complexes—where ethylene plants are built alongside post-processing facilities, utilities, and living spaces—offers numerous benefits. Such setups reduce overall investment by leveraging existing infrastructure. For example, a new 440kt/a ethylene plant in China could save around 840 million yuan by relying on the existing 380kt/a facility, cutting construction costs by 21%.
In areas with good market access, reliable raw materials, and well-developed infrastructure, centralized layouts offer advantages like shared transportation, utility systems, and storage facilities. They also promote economies of scale, better waste management, and reduced pollution.
To improve the industry, the author recommends a more concentrated layout. Existing plants should be restructured, and new projects should be strategically placed to form large, centralized industrial bases—similar to those in Antwerp or Mexico’s coastal regions. State-led bidding processes should determine optimal locations, reducing local competition and ensuring efficient planning.
Finally, the article emphasizes the need for coordinated planning and strict adherence to state-approved layouts. By focusing on large-scale, integrated projects, China can build a more competitive and sustainable petrochemical industry.
The author is a renowned expert in ethylene technology, a member of the China International Engineering Consulting Company's Expert Committee, and a former chief designer at China Petrochemical Engineering Construction Company.
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