HAIKOU, June 16. /TASS/. The Chinese company Hainan Refining and Chemical, a subsidiary of Sinopec oil and gas corporation, intends to expand its refining infrastructure in southern Hainan., according to the China Daily.
As part of the Chinese government free trade port project, Hainan Refining and Chemical plans to increase ethylene production capacity to meet domestic and international demand for this refined product. After the creation of the new infrastructure and modernization of the old one, the company expects to increase ethylene production to 1 million tonnes per year. According tothe Sinopec subsidiary's forecast, the new facilities will bring the refining sector more than 100 billion yuan (over $ 14.1 billion).
Hainan Refining and Chemical's 30 petrochemical production plants with storage and transportation infrastructure are located in the Yangpu Economic Development Zone in the northwest of the Hainan province. With an already existing base, the company plans to build ten new chemical production units, and also three oil refineries.
Hainan is one of the Chinese regions where hydrocarbon production is most actively carried out in the offshore area. At the same time, Chinese oil and gas companies are also engaged in industrial processing of primary raw materials on the island, cleaning and transportation of energy, as well as their storage. According to statistics, in the first quarter of 2020, Hainan exported petroleum products worth 4.56 billion yuan ($ 642 million), an increase of 17.7% compared to January-March 2019.
Earlier, the Central Committee of the Communist Party of China and the Сhinese State Council published the “General Program for the Establishment of a Free Port on Hainan,” according to which the island’s administration intends to create an effective system to fulfill a number of important social and economic goals by 2025, and within 10 years to decisively enhance the innovative mechanisms for the region's development.
In April 2018, President Xi Jinping said that the Chinese authorities intend to actively involve Hainan in globalization and to draw foreign investors to the island province. By 2050, according to the authorities, the island should become a unique international cluster with an advanced economy, developed tourism, top-notch scientific, technical and financial potential, and modern medicine. The branches of the best universities and offices of the most powerful corporations in the world will be located on the Island of Hainan.