Thoughts from Industry Leaders Will Steer Future Direction of China’s Petroleum and Chemical Industry
29/03/2018 Lehigh Valley, Pa.
With China driving for industrial transformation and upgrading for more sustainable growth under its 13th Five-Year Plan, the petroleum and chemical industry is calling for new thoughts to steer its future direction, which is focused on higher value-added products, innovation and environmental protection.
Air Products’ Industrial Gases Executive Vice President Corning Painter, along with 15 executives from other leading multinational and domestic chemical companies, attended the high-level, invitation-only and closed-door 2018 CEO Dialogue recently held in Beijing. Organized by government-backed China Petroleum and Chemical Industry Federation (CPCIF), the Dialogue is an annual forum for leaders to discuss industry challenges and exchange ideas to guide the next phase of development.
Addressing the topic “Prospect of the Transformation and Upgrading of Petroleum and Chemical Industry in New Era,” Painter offered his insights on how the coal gasification industry can play a key role in China’s Energy Strategy.
Gasification converts coal into syngas, carbon monoxide and hydrogen for further processing into higher value chemicals and transportation fuels.
“Gasification is the cleanest way to use coal. The major gasification players are investing in new facilities to produce these higher-value derivatives and creating growth opportunities for coal companies. The key ingredients for success are innovation, advanced technology, world-scale operational expertise, and industry cooperation to bring this all together. Large-scale gasifiers equipped with proven technology and plant operational expertise can help maximize output and minimize production cost. Air Products is committed to contributing our expertise and working as a partner in this endeavor to advance China’s success,” Painter said at the forum.
Air Products has been actively supporting China’s coal gasification market and collaborating with leading domestic companies to produce cleaner fuels and higher value-added downstream chemicals. More than a dozen of its advanced world-scale air separation unit plants are involved in four gigantic industry-leading coal chemical projects in Pucheng and Yulin of Shaanxi Province, Changzhi of Shanxi Province and Ordos in Inner Mongolia.
Last year, the company signed a significant investment agreement with Yankuang in the presence of U.S. President Trump and China President Xi during the U.S. Department of Commerce’s Trade Mission to China on a $3.5 billion coal-to-syngas production facility in Yulin. Prior to that, Air Products signed an agreement to form a $1.3 billion joint venture with Lu’an on another major coal gasification project in Changzhi. Most recently, in January 2018, the company announced an agreement to acquire Royal Dutch Shell plc’s Coal Gasification Technology business and Shell’s patent portfolio for Liquids (Residue) Gasification in support of gasification projects.
About Air Products
Air Products (NYSE:APD) is a world-leading Industrial Gases company in operation for over 75 years. The Company’s core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world’s leading supplier of liquefied natural gas process technology and equipment.
The Company had fiscal 2017 sales of $8.2 billion from continuing operations in 50 countries and has a current market capitalization of about $35 billion. Approximately 15,000 passionate, talented and committed employees from a diversity of backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com.
NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company’s Form 10K for its fiscal year ended September 30, 2017.