Invest in Hainan, new petrochemical materials a 100-billion-yuan petrochemical industry

Development basis of the petrochemical industry in Hainan

With 3 natural gas-rich areas and resources of 12 trillion m³, Hainan boasts one third of China’s total reserves of oil and gas.

Yangpu Economic Development Zone is the second largest commercial oil reserve base in China:

Yangpu Economic Development Zone is China’s only national foreign trade base for petrochemical products, and is the first industrial node for export of African and Middle Eastern oil and gas to China.

Yangpu Port incorporates 10-million-ton oil refining, 1.6-million-ton PX, 2.1-million-ton PTA and other projects, supported by 10 million ton commercial oil and gas storage capacity. It is China’s second largest commercial oil storage base.

Policy advantages of the petrochemical industry in Hainan

“Zero-tariffs” for raw and auxiliary materials for petroleum and natural gas In Hainan, import duties, import value-added taxes and consumption taxes are exempt for raw and auxiliary materials consumed in the petrochemical sector for production or self-use, and production and processing activities or trade in services.

Favourable policiesNon-free trade zone in the MainlandHainan Free Trade Port
Imported petroleum and crude
are exempt from taxes and fees
Import value-added tax rate is 13%Import value-added tax rate is 0%
Imported petroleum as well as
oils extracted from bituminous
minerals are exempt from
taxes and fees
MFN tariff for import is 6%,
and import value-added tax is 13%
Import consumption tax is 1.2 Yuan per litre
Import tariff and import value-added
tax are 0%, import consumption tax
is 0 Yuan per litre

Facilitation of foreign-funded oil storage in the Hainan free Trade Port

Hainan is currently working to optimise energy supply systems, increase support for oil and gas supply, facilitate investment in oil and gas storage & transportation facilities, encouraging foreign-funded enterprises to build oil storage facilities in the form of sole proprietorship or joint ventures and encouraging capital of all types to invest in the construction of LNG receiving stations and gas storage facilities.

Areas for investment in the petrochemical industry in Hainan

High-performance synthetic resin

Special engineering plastics

High-performance fibre

Manufacturing of offshore oil and gas exploration and development equipment

Recommended locations for investment in the petrochemical industry in Hainan

Lingao Jinpai Port Development Zone

Yangpu Economic Development Zone

Dongfang Lingang Industrial Park

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Related article: Invest in Hainan, what is the development direction for Hainan’s modern industry?

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