As my country’s petrochemical polyester industry is currently promoting the development of refining and chemical integration, the throughput capacity of ports and terminals is crucial. Following Hainan Island, Dalian Changxing Island, and Zhejiang Zhoushan Islands, large chemical fiber companies began to set their sights on Qinzhou, Guangxi for expansion.
On December 18, 2019, the groundbreaking ceremony of the first phase of the Tongkun Beibu Gulf Green Petrochemical Integrated Industrial Base with an annual output of 600,000 tons of styrene project was held in the Sandun Area of Qinzhou Port, Guangxi Zhuang Autonomous Region.
Qinzhou Mayor Tan Pichuang said: “The start of construction of this project marks a new level of integrated refining and chemical development of Qinzhou’s petrochemical industry, laying a solid foundation for the development of a world-class green petrochemical industry base for ASEAN. The solid foundation also marks that the ‘5+2’ major industrial projects proposed by the Qinzhou Municipal Party Committee and Municipal Government have all started construction in 2019. It is hoped that Zhejiang Tongkun Group will increase its horsepower, reverse the construction period, and make every effort to promote the project to be completed and put into operation as soon as possible, and jointly Let’s work together to build a world-class green petrochemical industry base to achieve mutual benefit and win-win results.”
Northern Tongkun Bay Green Petrochemical Integrated Project Starts
Although high-quality companies are different in their own way, some of their characteristics are often similar. These characteristics usually include being able to quickly make sensitive and accurate judgments on the policy dividends that relevant macro policies can bring, being able to accurately grasp the investment hot spots in the industry in which the company is located in the next 5 or even 10 years, and being able to act boldly and resolutely. Seize the opportunity and quickly turn your ideas into reality.
At present, these characteristics are increasingly evident among the big players in the domestic petrochemical polyester market, which has also caused some noteworthy changes in the investment trend in the industry.
On August 27, 2019, the Guangxi Qinzhou Municipal Government and Zhejiang Tongkun Holding Group Co., Ltd. (hereinafter referred to as “Tongkun Group”) signed the “Tongkun Qinzhou Beibu Gulf Green Petrochemical Integrated Industry” in Nanning Base Project Investment Contract”.
According to the investment contract, Tongkun Group will invest approximately 51 billion yuan to build the Beibu Gulf green petrochemical integrated industrial base project in Qinzhou, Guangxi, with an annual output of 2.8 million tons of aromatics and 5 million tons of PTA. The first phase of the project has an annual output of 600,000 tons of styrene with a total investment of 2.5 billion yuan. After the project is fully completed and put into operation, it will achieve an annual output value of approximately 65 billion yuan.
Tongkun Group is one of the leading enterprises in my country’s textile and chemical fiber industry, with an annual production and processing capacity of 6.2 million tons of polymerization and 6.8 million tons of polyester filament. In recent years, Tongkun Group has vertically integrated the entire industry chain of “refining-PTA-polyester-spinning-texturing”, continuously deepening the vertical layout of the entire industry chain, and enhancing the company’s comprehensive strength.
In fact, Tongkun Group has invested in Zhejiang Petrochemical’s 40 million tons annual refining and chemical integration project in 2015. In the first half of 2017, Tongkun Shares acquired 20% of the equity of Zhejiang Petrochemical held by Tongkun Group, and this part was included in the listed company sector. In the PTA sector, Jiaxing Petrochemical, a subsidiary of Tongkun Co., Ltd., first put into production the first phase of the PTA project with an annual output of 1.2 million tons. At the end of 2017, the second phase of the Jiaxing Petrochemical PTA project with an annual output of 2 million tons was also completed and put into operation. At present, its actual annual PTA production capacity has reached 4.2 million tons, and it is mainly self-produced and used, with a self-sufficiency rate of more than 94%. The Tongkun Beibu Gulf Green Petrochemical Integrated Industrial Base Project is an important manifestation of Tongkun Group’s continued deepening of the strategic layout of the entire industry chain and further increase in the refining and chemical field on the basis of its participation in the Zhejiang Petrochemical Refining and Chemical Integration Project. It is also an important manifestation of its expansion in Jiaxing Further expansion of PTA’s annual production capacity based on petrochemical projects.
Judging from the current competitive landscape of the domestic PTA market, Yisheng Petrochemical currently has an annual production capacity of 13.5 million tons of PTA, and there are still new projects with an annual production capacity of 6 million tons under construction. Hengli Petrochemical has formed a production capacity of 6.6 million tons of PTA per year, and there are still two new PTA projects with an annual output of 2.5 million tons, totaling 5 million tons, in progress.
Tongkun Group’s current annual PTA production capacity is approximately 4.2 million tons. In the first half of 2019, it was announced that it will build a new PTA project with an annual output of 5 million tons in Nantong, Jiangsu. In addition, this time it will be deployed in Qinzhou, Guangxi After the two new projects of the PTA project with an annual output of 5 million tons are successfully put into operation, its annual PTA production capacity will rapidly increase to approximately 15 million tons.
Chen Shiliang, chairman of Zhejiang Tongkun Holding Group Co., Ltd., said that Tongkun Group will adhere to the requirements of high starting point planning, high-standard configuration, high-quality construction, and high-level operation, scientifically arrange the construction progress, and strictly control Quality, complete the construction of the styrene project as soon as possible, promote other projects to be approved for construction as soon as possible, and make greater contributions to the economic and social development of Qinzhou while making the enterprise bigger and stronger.
It is worth mentioning that Qinzhou City’s “5+2” major industrial projects refer to the newly started construction in Qinzhou, 5 industrial projects with investments exceeding 10 billion yuan, and 2 projects with investments ranging from 5 billion yuan to 10 billion yuan. Yuan industrial projects. Among them, among the five industrial projects with investments exceeding 10 billion yuan, there is not only the Tongkun Beibu Gulf Green Petrochemical Integrated Industrial Base Project, but also Hengyi Group’s Hengyi High-end Green Chemical and Chemical Fiber Integrated Base Project.
What is Qinzhou’s support for refining and petrochemical projects?
Judging from the competition in the domestic petrochemical polyester market, large enterprises currently have a soft spot for refining and chemical projects.
Hengli Petrochemical’s 20 million tons annual refining and chemical integration project has been fully put into operation in 2019, achieving a strategic breakthrough for the company in the key production capacity of refining and aromatics. The Hengyi Brunei PMB petrochemical project, in which Hengyi Petrochemical holds 70% shares and the Brunei government holds 30% shares, was also put into production at the end of 2019. The PX product produced by the project��It has begun to be applied in Hainan Yisheng, an important PTA production base.
In May 2015, the National Development and Reform Commission issued the “Petrochemical Industry Planning and Layout Plan”. The “Petrochemical Industry Planning and Layout Plan” proposes that my country will build seven major petrochemical industry bases, including Ningbo in Zhejiang, Changxing Island in Dalian, and Lianyungang base in Jiangsu. In July 2018, the State Council passed the “Petrochemical Industry Planning and Layout Plan”, which requires safety and environmental protection to be given priority, and supports sole proprietorship or holding investment by private and foreign-owned enterprises to promote industrial upgrading.
From the geographical location of project selection, Hengli Refining and Chemical Integration Project is located in Dalian Changxing Island, Zhejiang Petrochemical Project is located in Zhoushan Green Petrochemical Base, Zhejiang, and Hengyi Brunei PMB Petrochemical Project is located in Brunei Darussalam The island of Damora in the Kingdom of Lan. For the transportation of bulk chemical products, sea transportation from ports has obvious advantages such as large transportation volume and low transportation costs. This is also the underlying reason why the above large-scale refining and chemical projects have chosen ports and islands with very important geographical locations.
The selection of Qinzhou for the Tongkun Beibu Gulf green petrochemical integrated industrial base project has caused the industry to turn its attention to Qinzhou, a small southwestern city in Guangxi.
Qinzhou City, Guangxi, located in the southwest, is the center of the Beibu Gulf Economic Zone in the South (Ning), North (Sea), Qin (Prefecture), Fang (City and Port), and is the most convenient access to the sea in the southwest. At the same time, Qinzhou is a land and sea node city in the south channel of the “One Belt and One Road” and an important city in the Beibu Gulf urban agglomeration. Its deep-water seaport is also the Qinzhou Port, a national bonded port.
Currently, Qinzhou is seizing the major development opportunities brought by the New Western Land-Sea Corridor, giving full play to the superimposed advantages and late-mover advantages of many national-level platforms, vigorously developing the seaward economy, and striving to build a hub for the “Belt and Road” Western New Land-Sea Corridor. The city will build a new development pattern of great openness, great channels, great ports, great industries, and great logistics. It is precisely because of its geographical location, port advantages, and such policy background that Qinzhou has become an important place in the southwest that attracts investment from large chemical fiber companies.
According to reports, at present, the petrochemical industry in Qinzhou City has basically formed an industrial structure that uses benzene as the basic raw material and extends to chemical fibers. The Tongkun Beibu Gulf Green Petrochemical Integrated Industrial Base Project will make up for the shortcomings of the local aromatics and PTA industries, realize “partition supply” between industrial projects and collaborative linkage between industrial chains, and promote the high-quality development of Guangxi’s petrochemical industry.
Wang Gebing, Secretary of the Qinzhou Municipal Party Committee and Director of the Standing Committee of the Municipal People’s Congress of the Guangxi Zhuang Autonomous Region, previously stated that with the State Council’s approval of the establishment of the China (Guangxi) Free Trade Pilot Zone, the announcement of the “Western Land-Sea New Corridor Master Plan” and the announcement of the Beiqin Defense integration is accelerating. As the land and sea hub of the new channel, Qinzhou’s high-quality development and high-level opening up are facing multiple overlapping opportunities.
Next, with the successive completion of new projects under Tongkun Group, Guangxi’s strategic fulcrum role in opening up to the ASEAN market will be further highlighted. With the in-depth deployment of several large private chemical fiber companies in the refining and chemical field, the bargaining power and comprehensive competitiveness of my country’s large chemical fiber companies and polyester polyester industry in the global “aromatics-PTA-polyester” industry chain will be further enhanced. Especially with the successive completion of new projects in Budian Qinzhou, it will help my country’s large chemical fiber companies to better expand international markets in countries along the “Belt and Road”.
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