Facts "The state council permitted Tianjin million tons of ethylene refining and chemical integration project to be put into construction;It will be completed and put into operation by the end of 2008; at that time, it can produce 12.00 million tons of petroleum, petrochemical and chemical fiber products each year;it can pull tens of billions of industrial production value and drive the overall upgrading of the traditional chemical industry in our city. "

To build Tianjin One Million Tons of Ethylene Refining and Chemical Integration Project is a long-desired wish for our city. The municipal committee clearly put forward to develop energetically ocean economy, use the coastal comprehensive advantage, focus on our features, and build an industry chain from crude oil exploitation, oil refining, petrochemical industry, to ocean chemical industry and fine petrochemical industry with the building of million tons of Large Ethylene Project as the leading one, so as to improve the aggregation scale and competitive capacity for the petrochemical and chemical industry in Tianjin. Our city is endowed with the natural advantageous conditions to build Large Ethylene Project. As the largest port city in the north of our country, Tianjin is located in the center of Bohai Rim, where the economy is developed, transportation is convenient and the industrial ground is very strong. Tianjin Port has possessed the conditions to load and unload 150 thousand tons of oil ships, plus the ongoing 300 thousand tons of deep water port and the supporting projects for crude oil storage and conveyance, it will establish a crude oil hub with crude oil transportation over 40 million tons in North China. Tianjin is also an important salt chemical base and petrochemical ground in our country, its total scale of chlor-alkali industry is ranked first in our country, and the production capacity of PVC amounts to a million tons. The petrochemical industry has good basis: Tianjin PetroChemical has established strong petrochemical products production capacity including an annual production capacity of oil refining amounting to 5 million tons and ethylene to 200 thousand tons, Aromatic Hydrocarbon 400 thousand tons, polyester 200 thousand tons and etc. It will become one of the crude oil bases at ten million tons level in our country around the year 2010. The building of Large Ethylene Project can not only promote the technical alteration of such traditional industries as Tianjin chlor-alkali and so on, enhance the product structure adjustment so as to improve product competency, but also exert great influence over the overall industrial layout regulation in our city.

Experts said when a country enters a heavy industrialization development stage, the demand for ethylene products will grow dramatically, and the growth rate of the demand for ethylene equivalents is often 1.5 times of that of the GNP in the same period. The production capacity and level of ethylene is also a reflection of a nation’s comprehensive economic strength. As the constant and rapid development of our economy, the domestic petrochemical products cannot meet the demand in the national economic development and the increase of people’s life, and the conflict between supply and demand is very prominent. According to the estimation, in the year 2004, our ethylene production capacity is 6.05 million tons, and the production total amounts to 6.27 million tons; while in the same year, the domestic consumption of ethylene equivalents is 14.50 million tons, and the self-supply rate of domestic-made ethylene fell from 78% in the year 1190 to the current 43%. In the year 2010, our ethylene production capacity can reach 17.00 million tons, and the demand of ethylene equivalents will amount to 27.00 million tons, and the self-supply rate shall rise to 58%. Therefore, there are huge market space for our country to develop ethylene and its lower reach of processing industry.

Next, Tianjin City and Sinopec, in accordance with the requirements of the State, will make good preparation for the opening of the project, gather all of the forces in our city to build Tianjin Large Ethylene Project into a symbolic and demonstration project in China’s petrochemical industry in the new century.