In 2006, the oil and petrochemical equipment industry experienced robust growth, largely driven by high oil prices. According to official data, from January to October 2006, the industry achieved a sales revenue of 52.418 billion yuan, reflecting a 47.12% year-on-year increase. Total profits reached 3.78 billion yuan, up 111.36% compared to the previous year. The industrial output value stood at 57.374 billion yuan, rising by 41.61%, while new product output value hit 70.22 billion yuan, showing a 7.3% annual growth. Export delivery value also surged to 7.08 billion yuan, an impressive 139.57% increase.
This strong performance was mainly attributed to the sharp rise in global crude oil prices, which peaked at $80 per barrel in July 2006—the highest level since 2000. Although oil prices began to decline in August, the impact on China’s oil and petrochemical equipment manufacturing sector had not yet been fully felt. The soaring oil prices prompted petroleum companies to accelerate structural adjustments, eliminate outdated technologies, and upgrade their facilities and technologies.
China National Petroleum Corporation (CNPC) reported a significant reduction in energy consumption, with its value-added energy consumption decreasing by 11.5% year-on-year. The company's fresh water consumption per 10,000 yuan of added value also dropped by 1.6%. By the end of 2006, Sinopec Group had shut down 16.2 million tons of outdated refining capacity, achieving record-breaking energy efficiency targets. The comprehensive energy consumption for crude oil refining reached 66.23 kg of standard oil per ton, a decrease of 2.81 kg from the previous year. Dynamic energy consumption also fell by 6.48 kg per ton.
The government’s focus on the localization of key petrochemical equipment created favorable opportunities for domestic manufacturers, accelerating the development of self-reliance in major equipment production.
One notable achievement was the completion of the first 1 million-ton ethylene project. Sinopec Maoming’s 1 million-ton/year ethylene expansion project was officially commissioned on November 18, 2006, making Maoming Petrochemical the largest ethylene production base in China. The project achieved an 87.8% localization rate, with core equipment such as cracking gas compressors and cold boxes produced domestically. New units, including a 350,000-ton/year high-density polyethylene plant and a 300,000-ton/year polypropylene plant, quickly reached full production and set new technical benchmarks.
The localization of large-scale ethylene plants significantly boosted the development of the equipment manufacturing industry and promoted product structure upgrades. Companies like Yizhong, Shengu, Hangzhou Steam, Hangzhou Oxygen, and Lanzhou Petrochemical Machinery Plant gained valuable opportunities for independent innovation and became key players in the domestic market.
Another milestone was the successful development of a world-class horizontal drilling rig. China’s first self-designed and built 400-foot offshore oil platform, a 122-meter jack-up drilling rig, was completed in Dalian and delivered to CNOOC on May 31, 2006. This marked a major breakthrough in the “Eleventh Five-Year†plan for large offshore oil equipment development. The platform is capable of drilling at depths of 122 meters and incorporates advanced, independently developed technologies. It is the largest, most automated, and deepest-operating offshore drilling platform in China, representing a significant step toward energy security and deep-sea oil exploration.
Additionally, the largest air separation unit in China was successfully installed in Anqing. On August 6, 2006, the independently designed and manufactured air separation plant at Anqing Petrochemical started operation, producing high-purity oxygen and nitrogen. This marked the end of China’s long reliance on imported large-scale air separation equipment and confirmed that the country’s air separation technology is now among the most advanced globally.
Auto Parts, Custom Auto Parts,CNC Machine Auto Spare Parts
Ningbo Jiongke Technology Co., Ltd , https://www.processingmfg.com