The petrochemical industry is a new enterprise of the 20th century. Its intermediate products can meet needs of the steel, catalytic chemistry, synthetic fibre and plastics industries, and also promote their development. It has already become one of the basic national industries of the Republic of China. To bring about an integrated development of the petrochemical industry, the government has made large investment in "upstream" and "down stream" projects, which will establish a complete production line, from the supply of raw materials to the processing of products.
The basic raw materials of the petrochemical industry are grouped into three categories: 1. Alkanes (methane, ethane) 2. Olefins (ethylene, propylene, butadiene) 3. Aromatics (benzene, toluene, xylene). At present, the Chinese Petroleum Corporation is responsible for the supply of raw materials, while the private investors take care of the "downstream" projects. Part of the intermediate products are also currently produced by both state-owned and private enterprises. Among state-owned operations are the DMT plant of the China Petrochemical Development Corporation and the caprolactam plant of the Chung-Tai Chemical Industries Corporation.
The Chinese Petroleum Corporation set up the first naphtha cracker at the Kaohsiung Refinery in 1968 to provide the basic raw materials for the "upstream" projects of the petrochemical industry. It produces 54,000 metric tons of ethylene annually. Later, to meet the need of the growing industry, the second naphtha cracker was completed in 1975. It produces ethylene, propylene and butadiene as raw materials. However, these products were still not sufficient for the domestic market. CPC began construction of the third naphtha cracker at the Lin Yuan petrochemical complex in April of 1974. The first stage is near completion. Part of it will start operation early next year.
Dimethyl terephthalate plant
laboratory of the Chinese Petroleum Corporation
The third naphtha cracker under construction
Control room of CPC's Kaohsiung Refinery
Recently-completed second naphtha cracker
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