Kramayi Petrochemical Industry Park

Kramayi Petrochemical Industry Park is located in the Kramayi Oilfield, the fourth largest onshore oilfield in China and the largest oilfield in the western region. It bases itself on PetroChina Dushanzi Petrochemical Company Ltd. with a capacity of 10.0 million t/a oil refining and 1.2 million t/a ethylene production and PetroChina Kramayi Petrochemical Company Ltd. with a capacity of 5.0 million t/a oil refining. It has a total planned area of 75.98 km2 and is a major petrochemical industry park in Xinjiang.      In the implementation of the oil strategy of “stabilizing the east and developing the west”, China has already defined Xinjiang as a major oil/gas production, processing and supply base and an important oil resource strategic substitution region. In its several decades' development the Kramayi Oilfield has at all times held the leading place in Xinjiang oil industry and also has a very important position in the energy construction and economic development of China. The construction of China-Kazakhstan crude oil pipeline has provided a golden development opportunity for Kramayi petrochemical industry to effectively use domestic and overseas resources and expand domestic and overseas markets.

Industrial focus

   The total development concept of Kramayi Petrochemical Industry Park is: fully using rich oil/gas resources in the Kramayi Oilfield and the Mid-Asia region, relying on the strong basis of oil refining and chemical production, employing regional advantages in human resources and technology, taking the establishment of a state-class petrochemical basis as the goal, conducting centralized management and rolling construction and developing the park into a modern petrochemical industry park with rational function layout, complete basic facilities, outstanding synergistic effect, prominent industrial feature, strong radiation power and first-rate investment environment.     The near-term industrial focus of Kramayi Petrochemical Industry Park is on the development of the chemical industry based on crude oil and the chemical industry based on natural gas. The basic strategy of the chemical industry based on crude oil includes two aspects. One is to use existing conditions to extend the processing of main products, make the comprehensive utilization of byproducts and develop the production of various assistants. The other is to make breakthroughs in the 1.5 million t/a DCC project and in-depth processing and the 400 000 t/a superflex olefin project and in-depth processing. The basic strategy of the chemical industry based on natural gas is to take the natural gas methanol project as the basis and use advantages in high-grade quartz and salt resources to vigorously develop methanol in-depth processing focused on organosilicon products with high added value.

Matched service

The Kramayi Municipal Government pays great attention to environmental protection. In the initial period for the development and construction of Kramayi Petrochemical Industry Park, environmental protection was put on the important agenda and an integrated concept for environmental protection was proposed. Hazard-free technologies and clean-production processes will be used, natural gas will be taken as clean energy and centralized treatment will be conducted to waste water and refuses. In this way a clean production environment will be created to achieve equilibrium between production and ecology and harmony between development and environment.    By the end of 2004 the municipal government had already put an equity capital of RMB200 million into the park development company. It made an investment of RMB100 million in 2005 for the use in the construction of basic facilities. The municipal government will put another RMB100 million in 2006 and plan to increase the investment according to actual needs. Inside the park, road, water supply, power supply, heat supply, natural gas transmission, sewage discharge and communication projects are being constructed and improved. Outside the park, a 4D-class airport in Kramayi with an investment of RMB300 million is ready for use, Urumqi-Kuitun expressway, Hohhot-Kramayi high-grade highway, 312 national expressway and 217 national expressway are connected with the park to form a convenient highway transportation system, North Xinjiang railway of the Europe-Asia continental bridge passes the park and Kuitun-Kramayi railway across the park will soon start construction.

Market planning

   Besides the two state-class major projects (the 10.0 million t/a oil refining project and the 1.2 million t/a ethylene project in Dushanzi), 8 projects with a total investment of RMB790 million are being constructed in the park today. The first group of projects in the park including the 200 000 t/a methanol project of CNPC Xinjiang Petroleum Management Administration, the 40 000 t/a light hydrocarbon isomerization project of Hua'ao Co., Ltd. (already starting production) and the 20 000 t/a maleic anhydride project of Jinta Co., Ltd. are making smooth progress. The 200 000 t/a methanol project and the 20 000 t/a maleic anhydride project will start production respectively at the beginning of 2006 and at the end of 2006. In Kramayi Chemical Industry Park a 70 000 t/a adipic acid project funded by Tianli High-Tech Co., Ltd. with an investment of RMB900 million has already been approved. It will start construction in 2006 and will be completed and put on stream in 2007. Besides, a group of fine chemical projects have already been launched or will be launched in Kramayi Chemical Industry Park.