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 a key indicator of a country’s development in the petrochemical sector. Over four decades, China has risen to the fourth-largest producer globally, entering the ranks of major petrochemical nations with significant experience. However, challenges remain in terms of plant size, layout, and efficiency. Questions such as how to build large-scale ethylene facilities under current technological and national conditions, what technical barriers exist, and how to make the industry more rational and cost-effective are now central concerns for policymakers and industry experts. Currently, China's ethylene industry is spread across major companies, provinces, and cities. This decentralized model leads to fragmented infrastructure, making it difficult to achieve economies of scale in utilities, public services, and environmental management. It also increases investment costs and weakens international competitiveness. With 31 provincial-level administrative regions (excluding Taiwan, Hong Kong, and Macao), 12 of them already have active ethylene industries, accounting for 39% of the total area. Plans are underway for several more regions to enter the market, potentially leading to over half of China’s administrative areas hosting ethylene projects. Some provinces, like Liaoning, already operate multiple ethylene bases, and are preparing for additional large-scale plants, raising concerns about redundancy and inefficiency. In contrast, global ethylene production is highly concentrated. In the U.S., for instance, nearly 60% of ethylene plants are located in Texas, with the Gulf Coast region producing almost 68% of the nation’s ethylene. Los Angeles alone hosts 12 units, contributing 24% of total production. This concentration allows for shared infrastructure, reduced costs, and better coordination. A centralized approach to ethylene development—integrating production, processing, and supporting facilities—can significantly reduce investment. For example, when expanding an existing 380kt/a ethylene plant with a new 440kt/a unit, substantial savings can be achieved by leveraging existing infrastructure. This includes transportation, utilities, and power supply, resulting in a 21% reduction in construction costs. Centralized layouts also allow for shared storage, maintenance, and environmental facilities, leading to more efficient use of resources and reduced pollution. To improve efficiency, the author recommends concentrating ethylene facilities in specific regions, particularly along coastal areas. This would involve reorganizing existing projects and guiding new developments through competitive bidding. Major oil and petrochemical companies should be responsible for selecting optimal locations, reducing local competition and promoting long-term planning. State authorities must also oversee the industry’s development, ensuring that new projects align with national strategies and contribute to the formation of large-scale petrochemical hubs. The author, a renowned Chinese ethylene expert and chief designer at China Petrochemical Engineering Construction Company, emphasizes the need for strategic, coordinated growth in the sector to ensure sustainability and global competitiveness.

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