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新闻详情
Grasp New Trend of Development Contribute to Realize the Transformation and Development of China's Petrochemical Industry
Source: | Author:sinogng | Publish time: 2018-01-03 | 1824 Views | Share:

Ganergy Heavy Industry Group (GNG Group) makes plan for Jinzhou’s 2 million tons Ethane Cracking Ethylene project
- American Ethane Company’s another contract signed in China


On Dec. 20th, 2017, the signing ceremony of the 2 million tons ethane project between Ganergy Heavy Industry Group (GNG Group) and American Ethane Company was held in Sheraton hotel in Jinzhou City. The participants from Jinzhou government are Wang Mingyu, the municipal  party  secretary of Jinzhou City; Wang Dejia, the mayor of Jinzhou City; An Jinxiang, the deputy mayor of Jinzhou City and other governmental leaders; the participants from American Ethane Company include President Andrey, CEO John; the participants from GNG Group include President Wang Zhengquan, General Manager Li Wenliang, Deputy General Manager Chen Hong, Director of Legal Department Liu Gang, Assistant to President Zhang Hao, and General Manager Assistant Jia Weiqian. News media such as Jinzhou local news media and Liaoning television station were on the spot to make interviews.


According to Xu Yuzheng, the deputy general manager of American Ethane Company Asia Pacific, their company will supply 2.6 million tons of ethane to the project annually under the contract, and will participate in the investment in the 2 million tons ethane cracking ethylene project programmed by Jinzhou government. This long-term contract will be based on the mode of "local ethane market transaction price in America + liquidation cost + shipping fee" to deal, calculated according to the current U.S. ethane price, the contract amount is more than $20 billion. American Ethane Company has built an ethane export terminal of 10 million tons/year in Gulf of Mexico; it contains the collection, storage, pipeline, liquefaction plants of ethane, the dock and the large ethane carrier VLEC, it will deliver the goods in China’s coastal ports on CIF basis.


After the shale gas revolution, the supply of ethane in the United States increased substantially, and the export to Asia has become an inevitable trend. Taking American ethane to China not only conforms to the strategy of American energy development and export, but also conforms to the green and clean transformation trend of China's petrochemical industry. Compared with the traditional naphtha-to-ethylene technology, the ethane cracking ethylene project has the advantages of short technological process, small occupation, small investment in device area and high conversion rate, etc.


On Nov. 9th, 2017, American Ethane Company signed trading contract on importing American ethane with Nanshan Group with the joint witness of Xi Jinping, President of the People's Republic of China and Donald John Trump, President of the United States of America. This is the first contract for China to import ethane from America. On Dec.20th, American Ethane Company signed ethane supply agreement with GNG Group in Jinzhou City, Jinzhou City will make plan for the 2 million tons ethane cracking ethylene project. This is another big contract American Ethane Company signed in China. American Ethane Company will provide long-term stable ethane supply for China, which will bring more profit margins for the enterprises making ethylene by chemical engineering, and its related industries will bring revolutionary change to ethylene and downstream industry of China.


Mr. Li Wenliang, general manager of GNG Group signed the contract with John, CEO of American Ethane Company and the signing ceremony was witnessed by the leaders of Jinzhou City and all the people presented. After the signing of the contract, Li Wenliang said that GNG Group was established in 1956, a large enterprise producing oil drilling equipment in China. GNG consists of lots of subsidiaries and foreign branch offices, with a registered capital of RMB 3.8 billion, and more than 16,500 employees in total. Four major business segments include: machinery manufacture, drilling engineering, energy development and financing service.


After more than 60 years of development, the comprehensive strength and international competitiveness of GNG Group have been strengthened. Innovation will drive development in the future and innovation and transformation will become the main theme of the development of GNG Group’s industry. The enterprise will accelerate the transformation of development mode, vigorously promote industrial optimization and upgrading, make great efforts to promote the in-depth integration of information and petrochemical industries, transform and upgrade by using advanced technology, adjust the industrial structure, improve product quality and increase the proportion of high-end petrochemical products. At the same time, GNG Group will cultivate their own world-class petrochemical enterprises with international competitiveness and famous brands, so as to enhance the group's whole competitiveness, promote the development of China from a petrochemical production country to a petrochemical powerful nation, and make contributions to build China as a moderately prosperous society.


At the end of the meeting, Mr. Wang Zhengquan made a speech, he said “GNG Group will cherish this valuable opportunity, which means we will actively bring in foreign enterprises for the cooperation of deep processing of the above products, by utilization the imported high purity ethane and world-class production technology and equipment.


The world economic situation is changing continually currently, the toughness of economic growth in the next 5 years will strengthen, the increasing speed of GDP all over the world will raise faster than that in several years ago, America is still expected to be the “forerunner” of OECD countries, the economy in Euro zone will revive gradually. Emerging economies will still be the major increasing power of the whole world economy, especially, China, India, Middle East, Africa and other countries and regions. In general, the supplying of oil and gas all over the world will still keep easing in the next 5 years. The great mass of increment will be the contribution of American tight oil, Canadian oil sand and Brazilian oil resource of deep ocean, but their growing rate is slower than that 2 years ago. With the increase of pressure for environmental protection and the advancement of technology, the low carbon trend of global energy consumption is obvious increasingly, and gas will be the bridge which will change the global energy from high carbon to low carbon.


Petrochemical industry is the base and pillar industry of Chinese national economy. After more than half a century’s development, China has established a relative complete petrochemical industry system, the industry scale is among the rank of major oil countries, and Petrochemical industry has become the important components of national comprehensive strength and competitive power. The prime operating revenue of petrochemical industry is 13.02 trillion Yuan in 2014, and is ranked second in the world.


In today’s world, green development and low carbon development have become the development trend of international companies, are also the major actions for each country’s government to change the mode of development and build strategic emerging industries. Chinese government pays high attention to ecological civilization construction, revises and introduces stricter environmental protection law, and has stricter and stricter standard and requirement for pollution discharge and carbon emission. All these are strongly associated with petrochemical industry, and will surely bring great influence and challenge to industry development.


Compared with the traditional naphtha-to-ethylene technology, the ethane cracking ethylene project has the advantages of short technological process, small occupation, small investment in device area and high conversion rate, etc. These advantages meet the requirement of green and clean transition trend of Chinese petrochemical industry, and will contribute to realize the transformation and development of China's petrochemical industry.

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