Oil & Gas Chemical  
Current Status  
Hainan has formed a complete oil and gas industry chain  
integrating  
"exploration,  
development,  
processing,  
warehousing, pipeline transportation, and sales". Among them,  
Yangpu has developed 10 million tons of oil refining, 10 million  
cubic meters of oil and gas reserves, aromatic hydrocarbons,  
and polyester industries and chain, crude oil, refined oil, port  
logistics and other supporting industries, while Dongfang Port  
Industrial Park has developed natural gas, methanol industry  
chain, and fine chemical industry.  
Development Direction  
Development Advantages  
§
Vast sea area with abundant natural gas and  
oil resources, accounting for more than 1/3  
of the total reserves of the country.  
§
§
The closest  
Oil and gas  
petrochemical and oil  
and gas reserves to the  
South China Sea oil  
and gas resources and  
the Middle East  
exploration  
Oil and gas  
refining  
Resources  
Location  
Policies  
Petroleum  
Fine Chemicals  
New material  
Covering the two  
major petrochemical  
product markets  
around Northern Gulf  
and ASEAN  
§
§
Hainan Free Trade Port policies  
Value-added rules for processing and  
other free trade port policies are pilot  
tested in Yangpu.  
Oil and gas  
reserves  
§
§
The downstream of the oil and gas chemical industry chain has broad  
development potential. The 1 million ton ethylene project in Yangpu is  
underconstruction. New oil refining and ethylene projects are planned, bringing  
a lot of investment opportunities to the downstream industry.  
Encourage well-known overseas companies to participate in the  
exploration and development of oil and gas resources in the South  
China Sea. The requirement that oil and gas exploration and development must  
be carried out with a revenue sharing contract with an oil and gas company who  
has foreign cooperation approval from the Chinese government is eliminated.  
§
Imported oil and gas exploration and chemical production equipment  
are exempt from tax. Exemption of import tariffs, import value-added tax and  
consumption tax on imported production equipment for self-use will effectively  
reduce production costs of enterprises.  
New Opportunities  
for FTP Investment