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China ramps up ethylene output, aka ‘industrial gold’, amid Iran war disruptions
PetroChina’s Xinjiang hub shifts output to the western interior region to rebalance coastal-heavy sector and hit green goals as Middle East conflict flares
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China is increasing production of ethylene, a petroleum derivative, in its oil-and-gas-rich west, with new facilities designed to meet carbon emission reduction targets, as conflict in the Middle East sparks concerns over supply chain vulnerabilities.
PetroChina subsidiary Dushanzi Petrochemical brought an ethylene production line online in the Xinjiang Uygur autonomous region on Thursday, expanding its annual production capacity by 1.2 million tonnes, PetroChina said in a statement. It said the expansion would raise Dushanzi’s annual production capacity in the region to 3 million tonnes, making it the largest ethylene production hub in central and western China.
“This will reshape the long-standing east-west geographic imbalance of domestic ethylene capacity, while enhancing the resilience and security of energy and chemical supply chains,” said PetroChina, the listed arm of state-owned China National Petroleum Corporation.
Ethylene, which has been dubbed “industrial gold” in China, is critical to the production of modern industrial goods, spanning everything from everyday plastics to synthetic fibres and advanced materials.
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