HAIKOU /China/, Nov. 11. /TASS/. South China's Hainan province has in recent years become a popular investment destination for companies engaged in hydrocarbon production and processing due to its optimal business environment and successful economic growth. Liao Qiang, head of the Hainan Oil, Gas and Chemical Industry Association, said.
"Hainan has created an ideal environment for the development of the oil and chemical industry," he stressed, speaking at the 7th World Oil and Gas Equipment Exhibition, which opened this week in Haikou. As the head of the association specified, the island "has become the new ideal place for innovations and investors from all over the world."
According to Liao Qiang, China National Offshore Oil Corporation is developing five major fields near Hainan: in the waters to the northeast (Wenchang), south (Lingshui and Sanya) and west of the island (Ledong and Dongfang). The company supplies the gas produced there not only for its own needs in the region, but also to neighboring Guangdong Province and also to Hong Kong.
The head of the association added that Hainan's oil and gas projects also involve foreign companies engaged in their technical maintenance. In particular, these are the BP (UK), Baker Hughes (US) and Raffles (Singapore). Since the beginning of the year, the combined gross output of their Hainan units totaled 4 billion yuan (more than $550 million), increasing almost four-fold year-on-year.
According to statistics, as at the end of 2021 Hainan's oil, gas and petrochemical sector had 57 major companies, each with an annual profit of over 20 million yuan or $3 million, including two companies engaged in hydrocarbon production, seven in coking, oil refining and nuclear fuel production, twelve in gas processing and supply, nineteen in chemical products manufacturing, seventeen in rubber and plastic products and five in power generation from natural gas.
Hainan plays an important role in the development of hydrocarbon reserves in the South China Sea by PRC companies. According to the government plan for the 14th Five-Year Plan (2021-2025) the province will increase oil production by 300 thousand tonnes and gas production by 3 billion cubic meters. The gas fields adjacent to the island will supply 9-13 billion cubic meters annually.