[Industry Focus]：The list of key petrochemical projects in Shandong Province was announced in 2024. What is the focus of Shandong's future development?

The Shandong Provincial Government recently announced a list of major projects in 2024, covering 555 implementation projects and 45 preparation projects, with a total of 600 key projects. Among them, there are as many as 84 key projects related to petrochemicals, accounting for 14% of the total projects. As China's largest concentration of local refineries and chemical market trade area, Shandong Province has gathered a large number of petrochemical and related supporting enterprises, and the chemical industry is an important economic pillar.

This data not only reflects the development status of the chemical industry in Shandong Province, but also indicates the future development direction. The list of key projects in 2024 has attracted wide attention within the chemical industry, as they represent the key investment areas and strategic direction of the chemical industry in Shandong Province in the future.

1. Yantai and Dongying lead the petrochemical industry in Shandong Province: regional distribution and prospects of key projects

from the statistics of key petrochemical projects in Shandong Province, we can clearly see that Yantai and Dongying are the regions with the largest number of key projects, each with 12 petrochemical-related key projects, tied for the first place. This is not accidental, as the two regions have deep foundations and strengths in the chemical industry.

Yantai's outstanding performance in the petrochemical field is not an overnight success. In fact, Yantai City also ranks first in the number of key petrochemical projects in Shandong Province in 2022 and 2023. This shows that Yantai has been regarded as a key petrochemical development area for many years, and its future industrial development direction is likely to continue to focus on the petrochemical industry. With the promotion of Yulong Petrochemical's key projects, Yantai is expected to take over the banner of chemical development in Dongying, Weifang and Zibo, leading the future development direction of the chemical industry in Shandong Province.

Then, why is the number of key petrochemical projects in Yantai so large? This is mainly due to several key factors. First of all, Yulong Petrochemical, as the only integrated refining and chemical enterprise in Shandong Province, has a large number of supporting devices, which will naturally drive the growth of related auxiliary projects. Secondly, Yantai has port resources comparable to Qingdao Port, which provides a unique advantage for its development of petrochemical industry. Finally, Yantai is close to Dalian, which helps to form a complementary set with Dalian's petrochemical industry.

Key petrochemical projects in Yantai are: yantai Port West Port Crude Oil Terminal Phase II Supporting Tank Project, Shandong Yulong Petrochemical Co., Ltd. Yulong Island Refining and Chemical Integration Project (Phase I), Wanhua Chemical Group Co., Ltd. Wanhua Yantai Industrial Park High-end Fine Chemicals Integration and Industrial Chain Extension Supporting Project, Wanhua Chemical (Penglai) Co., Ltd. Wanhua (Penglai) High-performance Material Integration Project, Wanhua Chemical Group Co., Ltd. 1.2 million Tons/Year Ethylene and Downstream High-end Polyolefin Project ltd. China Resources Chemical Nylon New Material Industry Upgrade Project, Shandong Nanshan Zhishang Technology Co., Ltd. Annual Output of 80000 Tons of High Performance Differentiated Nylon Filament Project, Shandong Yulong Petrochemical Co., Ltd. Carbon Four Comprehensive Utilization Project, Yantai Far East Fine Chemical Co., Ltd. China Europe New Material Science Park Project, Shandong Dawn Titanium Industry Co., Ltd. Rutile Titanium Dioxide Intelligent Transformation Project.

Dongying key petrochemical projects are: dongying Port 250000-ton Crude Oil Import Berth and Supporting Project, Shandong Zhenhua Petroleum Energy Reserve Co., Ltd. Weifang Crude Oil Reserve Project, Shengli Oilfield 2023 Production and Supporting Facilities Construction Project, Sinopec Dongying Crude Oil Commercial Reserve Project, Shandong Yatong Energy Development Co., Ltd. Raw Oil and Refined Oil Storage Project, Zhenhua Petrochemical Co., Ltd. Propane Dehydrogenation and Propylene Oxide Project, Easily Increase 200000 Tons/Year Electronic New Material Grade Epoxy Resin and Special Resin, lihua Yi Lijin Refining and Chemical Co., Ltd. Special Engineering Resin -50000 Tons/Year ASA Resin Project, Dongying New Sunshine Annual Output of 1320 Tons of Polyimide and Other High Performance Polymer Materials and Special Monomers, 9630 Tons of Special Chemicals Project, Shandong Lanwan New Materials Co., Ltd. 200000 Tons/Year Acrylic Acid and 40000 Tons/Year Acrylate Project, etc.

2. Shandong Province 2024 Petrochemical Project: New Material Industry Becomes Development Focus

from the distribution of key petrochemical projects in Shandong Province in 2024, new materials and related petrochemical projects occupy an important position. A total of 28 projects, accounting for 33% of the total petrochemical projects, indicating that the new material industry has become an important direction for the development of the petrochemical industry in Shandong Province.

Shandong Province has a wide layout in the field of new materials, covering functional polymer materials, new energy-related new materials and other new material products. The application fields of these new materials are extremely wide, which not only promotes the upgrading of industry, but also meets the diversified needs of social and economic development.

As an important development direction of the current national chemical industry, new materials have the largest number of key projects. Although new materials are the key to China's industrial upgrading, in the absence of national overall planning and policy guidance, new material products developed between provinces inevitably overlap.

Among the product types of major chemical projects in 2024 in Shandong Province, the development direction of new materials mainly focuses on two centers: first, new materials to meet the needs of new energy development, such as positive and negative materials for lithium batteries, new lithium battery separator materials and electrolyte materials; The second is new high-end materials that drive the upgrading of terminal products, such as nylon high-end materials, electronic grade materials and new film materials.

The key projects of Shandong Province in the field of new materials are: qingdao Chengzhi New Material Industrial Park Project (40000 Tons/Year Ultra High Molecular Weight Polyethylene), Shandong Chuangdao New Material Technology Co., Ltd. 10000 Tons/Year Polyurethane Rubber Vulcanizing Agent MOCA, Shandong Yongcheng New Material Co., Ltd. Annual Output 12000 Tons/Year High Performance Carbon Fiber Project, Yi Rui Increase 200000 Tons/Year Electronic Grade Epoxy Resin and Special Resin New Material Project, Shandong Ruilun New Material Technology Co., Ltd. 200000 Tons/Year PS, Ltd. Co., Ltd. 10000 tons/year polyphenylene sulfide (PPS) special materials project, etc.

3. The industry in Shandong Province continues to transform, and the proportion of new energy-related projects is gradually increasing.

From the key petrochemical projects in Shandong Province in 2024, we can clearly see the three main models of the province's petrochemical industry development: industrial chain development model, innovative development model and advantage-maximizing development model.

The industrial chain development model is to rely on the existing industrial chain of chemical enterprises to carry out downstream extension. This model further expands the industrial chain by means of "eating dry and squeezing clean" and "technological upgrading", so as to enhance the competitiveness of enterprises and expand the scope of profits. For example, the special engineering resin -50000 tons/year ASA resin project of lihua yi lijin refining and chemical co., ltd., the annual output of 70000 tons of high-performance new materials project of Shandong yanggu huatai chemical co., ltd. and the 10000 tons/year polyphenylene sulfide (PPS) special material project of Shandong binhua binyang combustion and chemical co., ltd. are all developed based on their own industrial chain raw material supply mode.

The innovative development model is mainly reflected in the product innovation of petrochemical enterprises in Shandong Province in the field of chemicals and new materials. This is the fundamental logic that global leading companies follow for the development of the chemical industry. Only through innovation can companies walk out of their own characteristic paths and achieve real differentiation. Among the key chemical projects in 2024, projects with substantial innovation, such as Wanhua (Penglai) high-performance material integration project of Wanhua Chemical (Penglai) Co., Ltd. and Wanhua Yantai Industrial Park of Wanhua Chemical Group Co., Ltd. High-end fine chemicals integration and industrial chain extension supporting projects are models of product innovation and development.

As an important production base of China's petrochemical enterprises, Shandong Province has a complex industrial chain and a wide range of products. In the future, the development of the petrochemical industry in the province will show a rapid trend, and many projects will be put into production one after another to accelerate the development speed of scale and refinement; it will also face serious homogenization problems, with similar product types and similar development directions. Therefore, the chemical enterprises in Shandong Province need to pay more attention to the changing trend of the competitive environment and look for the differentiated competitive advantages in the subdivision field.