Petrochina Liaoyang Launches a New HDPE Production Plant
- 10-Sep-2021 12:20 PM
- Journalist: Nina Jiang
PetroChina Liaoyang Petrochemical, a listed arm of China’s public sector company China National Petroleum Corporation (CNPC), has planned to commission a new high-density polyethylene (HDPE) production facility of 400 KTPA capacity at Liaoyang in September 2021. PetroChina Company Limited is a Beijing headquartered oil and gas company that enjoys the title of the largest oil and gas producer in Asia.
China has the largest HDPE market share owing to its extensively increasing construction activities and heavy usage of HDPE in piping and plumbing. Globally, the HDPE market in 2020 stood at 45 million tonnes with its consumption in the end-user sectors of transportation, packaging, construction, machinery, and electronics. Its demand in the COVID19 period was hampered due to halts in construction activities, however with rebounding industrial activities and growing popularity of FMCG products among the local masses the HDPE demand is expected to grow with a CAGR of over 5% in the coming 10 years.
HDPE is categorised as a thermoplastic polymer that is produced from the high-temperature cracking of petroleum. Its flexibility, easy processability, translucence, and weather-tolerant properties favour its versatility for use in almost every sector ranging from plumbing and construction, packaging, consumer products, medical equipment. Its recyclability also makes it a viable and eco-friendly petrochemical.
As per ChemAnalyst, the demand for HDPE in China will continue to take great strides on account of intensifying industrial growth, with the only inhibiting factor being the fluctuating prices of crude oil. Despite several capacity additions and expansions in the past few years, China’s local demand for HDPE is contended by heavy imports. The commissioning of a new HDPE plant by PetroChina is a welcome move, that is expected to contribute significantly to fulfilling the local needs and also reduce the high dependency of China on imports.