Liaoyang Petrochemical Company Completes Five Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Liaoyang Petrochemical Company (Liaoning Province), a subsidiary of China's oil giant China National Petroleum Corporation (CNPC), has completed five large projects, including a 200,000-ton-per-annum (TPA) glycol production line, a 200,000-TPA ethylene production line, a 1.2 million-TPA hydro-refining unit, an 800,000-TPA purified terephthalic acid production line and a 300,000-TPA sulfur recovery unit. The last two projects have been completed and brought into full operation earlier than the former three, which workers are now testing.

These five projects are part of the company's ambitious plans to enlarge its sales volume to $6.8 billion and become China's largest manufacturer of arene and its derivatives. The glycol and ethylene projects cost about $188 million and are designed to produce materials for manufacturing polyester while the hydro-refining unit is to supplement the company's 5.5 million-TPA crude oil processing line.

Liaoyang Petrochemical, covering an area of 16 square kilometers and 162 kilometers away from the nearest seaport, was founded in 1972 by introducing complete French manufacturing sets. With decades of production capacity expansion, the company has become one of China's four largest chemical fiber production bases, processing about 10 million TPA of crude oil, much of which comes from Russia. The company boasts three major kinds of business: crude oil processing, ethylene and arene.

China's petrochemical market is expected to grow quickly. Experts say that in 2010, China's oil consumption will rise to 380 million tons from 318 million tons in 2004 and that the demand of gasoline, kerosene and diesel fuel will increase at least 70% from 2000.

China is the second-largest ethylene producer next to the United States. China's ethylene production capacity will rise to 18 million tons per year by 2010, supplying nearly 50% of the country's ethylene demand, which will increase at an annual rate of 8% in the next three years.

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