Petroleum and petrochemical industry boosts economic development in Xinjiang
Since the reform and opening-up policy, Xinjiang's petroleum and chemical industry has developed three major oil and gas production bases in Junggar, Tarim, and Tuha, leveraging its rich energy resources. This growth has led to the establishment of large-scale refining centers such as Karamay and Dushanzi, attracting numerous well-known domestic enterprises for deep processing. As a result, the petroleum and petrochemical industry has entered a new phase of development.
In the early days, the initial refining capacity at the Karamay Oilfield in the Junggar Basin was only 100,000 tons. However, over the past 30 years, the field has seen remarkable progress. By 2002, crude oil production exceeded 10 million tons, making it the first million-ton oil field in western China. The refining capacity has now reached 5 million tons.
Tang Jian, Secretary of the Karamay Municipal Party Committee and Party Secretary of Xinjiang Oilfield Company, noted: "In the early years, crude oil production was relatively low. For example, in 1981, it was only 3.84 million tons, but this year, Karamay’s crude oil output reached 12.32 million tons, showing 28 years of steady growth."
Compared to 1978, Xinjiang Oilfield Company's crude oil output increased by 2.45 times, while natural gas output rose by 10.57 times. Last year, processed crude oil reached 8.84 million tons, an increase of 5.28 times.
Today, Xinjiang Oilfield produces more than 300 types of petroleum and petrochemical products. Karamay Petrochemical Company, as the largest domestic naphthenic lubricant production base, supplies key products like EHV transformer oil, DC converter transformer oil, bright oil, and refrigeration oil, filling market gaps. Its lubricants, rubber oil, and refrigeration oil are among the best in the country.
Liu Xinjun, Deputy Director of the Refinery Third Joint Workshop at Karamay Petrochemical Company, explained: "In December 2000, we launched a high-pressure hydrogenation unit with a design capacity of 300,000 tons. In September 2007, we added two more units. With this advanced equipment, our company is now the largest lubricant production base in China, with an annual processing capacity of 600,000 tons."
Currently, Karamay has built a comprehensive oil industry system covering exploration, development, engineering services, refining, and downstream petrochemical processing. Cumulative crude oil production stands at 253 million tons, nearly 40 billion cubic meters of natural gas, and 143 million tons of refined crude oil, with 2.355 million tons of ethylene produced annually.
Compared to Karamay, the later-developed Tarim Oilfield has also shown rapid growth, driven by its abundant resources. At the end of last year, the Tarim Oilfield supplied 15.5 billion cubic meters of gas to the West-East Gas Pipeline, with plans to reach 18 billion cubic meters this year.
Tian Tianxiang, Assistant to the General Manager of PetroChina’s Tarim Oilfield Company, said: "From 1989 to next year, the first stage involved discovering the Lunnan and Tazhong oilfields. The second stage, from 1998, saw the discovery of the Karat-2 gas field, marking the start of the West-East Gas Transmission Project. By the end of 2004, we had begun supplying gas to the pipeline."
Today, the Tarim Oilfield is entering a phase of heavy oil and large-scale development. It has produced over 62.69 million tons of crude oil and 38.6 billion cubic meters of natural gas. Crude oil output rose from 39,900 tons in 1989 to 6.43 million tons in 2007, while natural gas output increased from 5.7 billion cubic meters in 2005 to 15.5 billion cubic meters in 2007.
As a key area for oil exploration and the source of the West-East Gas Transmission, the petroleum and petrochemical industry has become one of the top five industries in the region. With the support of PetroChina, Sinopec, and Meike Chemicals, the industrial chain has been established, making Bazhou an essential part of South Xinjiang’s oil industry base.
Dong Bin, Director of the State Development and Reform Commission of Brazil, highlighted: "Currently, 50% of the state's total production value and 30% of local tax revenue come from the petroleum and petrochemical industry. Strong oil development has also driven progress in agriculture, forestry, fishery, animal husbandry, machinery manufacturing, agricultural product processing, construction materials, and transportation."
The economic structure of the region has shifted significantly, with the proportion of three main sectors changing from 39.6:30.7:29.7 in 1989 to 14.5:68:17.5 in 2007. The development of oil and gas resources has played a crucial role in driving overall regional growth.
In 2007, Xinjiang produced 26.04 million tons of crude oil, a 6.4-fold increase from 1978. Natural gas output reached 21 billion cubic meters, up 82.7 times compared to 1978. Gas transmission through the West-East Gas Pipeline grew from 600 million cubic meters in 2004 to 13.7 billion cubic meters in 2007. That same year, the petrochemical industry contributed nearly 70% of the added value of large-scale industries, with an industrial output value of 204.54 billion yuan—nearly 1,000 times higher than in 1978.
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