Recently, the NDRC has issued the “Promotion of the Action Plan for Energy Conservation and Carbon Reduction in the Petrochemical and Chemical Industries (2021-2025)”, which proposed to guide the orderly withdrawal of inefficient capacity. According to the action plan, it is required to strictly implement the “Industrial Structure Adjustment Guidance Catalogue” to eliminate the 2 million MT/year and below refinery facilities, the natural gas atmospheric pressure intermittent conversion process for synthetic ammonia, the calcium carbide furnaces with the capacity of less than 12,500 kVA and open calcium carbide furnaces. It is strictly prohibited to build the new 10 million MT/ year below normal pressure reduction, 1.5 million MT/year below catalytic cracking, 1 million MT/year below continuous reforming (including aromatics extraction), 1.5 million MT/year below hydrocracking, 800,000 MT/year below naphtha cracking ethylene and the fixed layer intermittent gasification synthetic ammonia facilities. It is required to carry out the capacity reduction replacement for new refinery projects and capacity equal or reduction replacement for the new calcium carbide, urea (one of the synthetic ammonia downstream industry chain) projects. It is required to quickly eliminate the 300,000 MT/year and below ethylene, as well as the 100,000 MT/year and below calcium carbide facilities. It is required to efficiently eliminate the idle capacity.
Source: Chemical 365