Reporter: We have noticed that DaYaWan Petrochemical Park has a prominent feature, which is the planning of the petrochemical park comes later than the CSPC Nanhai project. How is the development status of DaYaWan Petrochemical Park since the CSPC Nanhai project start to construct on 1st November, 2002?

Li Xiufeng: DaYaWan Petrochemical Park has a developing area close to 10 square kilometers. The CSPC Nana project was on production on 31st March this year. 12 million tons/year refinery project of CNOOC Huizhou, which began construction on December 15th, last year, is going to be on production in 2008. DaYaWan Petrochemical Park has been formed a pattern of industrial development. It links enterprises in the industrial chain together. Projects which have been settled down so far are MMA, comprehensive utilization of pyrolysis gasolin, phenol/acetone, bisphenol A, SBS, SBR, surfactant, etc. Some are under negotiation now.
In recent years, a large number of project relocations have completed successively in DaYaWan Petrochemical Park. It assures that there is enough land for development.
Water Diversion Projects and power supply projects are completed, which assure that there is enough water and electricity for the development of Major petrochemicals. Excavation and channel extension projects improved the marine conditions. International professional companies were introduced into the Utilities in Petrochemical Park by Drawing Foreign Capital and Business.
For example, the industrial gases project invested by Praxair in the U.S., the warehousing, terminal, concourse projects invested by Oiltanking in Germany, and steam, water, sewage projects are improving into integration gradually.

Reporter: After years of exploring and developing, Has DaYaWan Petrochemical Park found a path of development?

Li Xiufeng: DaYaWan Petrochemical Park had caught up with a rare opportunity for development. DaYaWan Petrochemical Park bases itself on sustainable development and draws on the experience of the world’s advanced chemical industry park. We started from high point, according to the concept of international advanced park, built the park after layout. Positive interaction is brought between construction and layout. We have accomplished Overall and various special layout of DaYaWan Petrochemical Park including Environmental protection, flood control moisture, fire safety and emergency plans. What we going to do next is to complete it perfectly.
Rational characteristics are shown in the process of DaYaWan Petrochemical Park’s development from layout to construction. We develop middle and lower reaches projects only relying on the 2 leading projects for the raw materials at the very beginning. We exam ourselves according to the accumulating experience of drawing investment in DaYaWan petrochemical park. We recognized that drawing investment must be in accordance with the principles of market economy. The industry chain of DaYaWan Petrochemical Park must focus on the development of petrochemical feedstocks, intermediates and synthetic materials. On the other hand, we kept exploring the development of the park’s industry chain.

Reporter: DaYaWan Petrochemical Park’s planning area is 29.8 square kilometers. We got the knowledge from your presentation that one third of DaYaWan Petrochemical Park’s land has been developed. Some in the Petrochemical field thinks that an area of 29.8 square kilometers is impossible to be filled by middle and lower reaches projects which only relying on the 2 leading projects. Please talk about the development ideas of DaYaWan Petrochemical Park in the future

Li Xiufeng: The successful operation of CSPC Nanhai petrochemical project is only an introduction of world-class petrochemical projects. There are still large gaps from world-class petrochemical parks. According to the World’s petrochemical industry development trends and the national industrial policy, and the current investment situation of DaYaWan Petrochemical Park, We target on 30 mt/a oil refining and 2mt/a ethylene producing. I’m going to talk about several points on the development of the park.
Firstly, CNOOC has put the DaYaWan as an important base for its development. At present, CNOOC invest more than 40 billion yuan on CSPC Nanhai petrochemical project, CNOOC Huizhou refinery project and the LNG plant project. It will also support the development of service industry and the middle and lower reaches, which means a total investment of over 10 billion yuan.
Secondly, major petrochemical and logistics promote reciprocally. Thirdly, CSPC Nanhai petrochemical project and CNOOC Huizhou refinery project have space for expansion, which will lead to new investments and middle and lower reaches projects.
Fourthly, in the future, coal chemical industry is encouraged to develop for Energy security in China. DaYaWan Petrochemical Park may seize this opportunity, thus coal chemical and petrochemical may complement each other well.
Fifthly, we are looking forward to develop another Oil refining and ethylene project by making use of international oil resources. If the petrochemical park integrate resources such as human resources and energy, seize the opportunity, pay attention to environmental protection and safety factors, explore for contingency plans, it will have a bright future.