The Chinese petrochemical industry is at a pivotpoint in its development as the 11th Five-Year Plan period unfolds. The enormous potential of China’s petrochemical market will keep attracting the notice of investors at home and abroad. Meanwhile, the industry is likely to see intensified competition, increased resource shortages and greater risk from big fluctuations in the global oil price. To determine the influence of global economic and oil price trends on China’s petrochemical industry, sharpen the industry’s competitive edge and help it better address the critical issues it faces, International Petroleum Economics Monthly, together with ARA, convened the 2006 China Petrochemical Industry Forum on November 14 and 15, 2006, in Beijing. Over 80 domestic and foreign experts attended the forum. Insiders from Thailand, India, the USA, Canada and Hong Kong exchanged views with Chinese petrochemical experts on the development climate and challenges faced by the Chinese and Asia- Pacific petrochemical industry. Petrochemical businesses from the Yangtze River delta area and northeast industrial bases briefed the forum on their projects. And global petrochemical giants attending the forum shared their experience in launching and managing big petrochemical projects in China. The article reports on the climate and possible path for development of China’s petrochemical industry, and how Chinese petrochemical businesses can improve management and sharpen their competitive edge.
The continued spike in the global oil price turns alternative sourcesof energy, clean energy in particular, into a growing interest to the public. As environmentally friendly energy, natural gas attracts increasing attention. The LNG industry is still in its infancy in China. The Guangdong LNG project, the first LNG project ever undertaken in China, was brought into operation on June 28, 2006. However, the market conditions faced by other LNG projects to be launched have changed a lot since the Guandong project was negotiated. The global LNG market has changed from a buyer’s to seller’s market since 2005, with the LNG price continuing its upward spiral. Under the pressure of the shrinking LNG supply and soaring price, the Chinese LNG industry must make a strategic decision on where to go and how. It is for the purpose of pointing out the way forward for the industry that we, jointly with ARA, convened the International LNG DevelopmentForum, China, 2006 in Beijing from July 25 to 26, 2006. The forum examined LNG market demand and supply and the medium- and long-term trends of development in the LNG price in the Asia Pacific region and the whole world at large, and studied the practices of China’s neighboring countries in LNG development in the hope of providing focused experience for the Chinese LNG industry. Highlighting the need to keep up with the latest trends of development, in line with the specific national conditions of China, consistent with market demand, and with a view toward multi-party involvement and unified planning, improvement of targeted policies and diversity in LNG development, the forum calls on the Chinese LNG industry to make the right strategic proposals and capitalize on the opportunities available to achieve steady, sustained, sound and rapid development.
