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 policies | Non-free trade zone in the Mainland | Hainan 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
Related article: Invest in Hainan, what is the development direction for Hainan’s modern industry?
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