On February 21, the government of the Guangxi Zhuang Autonomous Region announced that the "Development Plan of the Guangxi Beibu Gulf Economic Zone" had been officially approved by the State Council. This marks a significant step forward in China’s energy strategy, as the Beibu Gulf region holds vast potential for offshore oil and gas development. With numerous deep-water ports and strategic access to ASEAN markets, the area is becoming a key player in optimizing China's oil supply structure. The development of an oil and gas chemical industry here not only strengthens the coastal economic chain but also enhances regional integration and trade.
The Guangxi Beibu Gulf Economic Zone spans four cities: Nanning, Beihai, Qinzhou, and Fangchenggang. It has strategically positioned itself around the oil and gas chemical industry, with major projects already underway or completed. This has led to the emergence of a new industrial belt along the Beibu Gulf coast, significantly boosting local economic growth.
One of the most notable projects is PetroChina’s Qinzhou Refinery, the largest in the Beibu Gulf region. Part of the national "Eleventh Five-Year" plan, it has a refining capacity of 10 million tons per year and is the largest individual investment project in Guangxi. With a planned investment of 15.2 billion yuan, the refinery was gradually commissioned by the end of 2008 and fully operational by late 2009. Once running, it will supply over 700,000 tons of refined products—including gasoline, diesel, aviation kerosene, and liquefied petroleum gas—to Yunnan, Guizhou, and Guangxi, easing regional shortages. It will also produce petrochemicals like polypropylene and aromatics, supporting downstream industries.
Meanwhile, Hainan Province, located at the northern edge of the South China Sea, has focused on ammonia and methanol production, expanding into downstream chemical products. In Dongfang City, it has built the country’s largest natural gas processing base, with an annual output of 3 million tons of chemical products. Additional projects involving polypropylene, styrene, ethylene, PX, and PTA are under construction, further extending the petrochemical industry. By 2010, the province’s petrochemical sector is expected to reach a total output value of about 50 billion yuan.
The development of the Beibu Gulf as an energy hub addresses the imbalance in China’s refining capacity distribution and alleviates the recent oil shortages in Guangxi, Yunnan, and Guizhou. It also ensures a stable energy supply for the southwest region, supporting its economic growth and enhancing cooperation between China and ASEAN.
Geographically, the Guangxi Beibu Gulf Economic Zone is ideally situated at the southwestern tip of China’s coast, with convenient access to ASEAN via deep-water ports and maritime routes. This strategic location made it highly attractive from the start. As early as 1984, Beihai was designated as one of China’s first coastal open cities, similar to Shenzhen and Zhuhai. Later, Qinzhou was also opened as a coastal area.
Today, the Beibu Gulf Economic Zone is more than just a regional advantage—it serves as a crucial gateway and hub for China-ASEAN cooperation. Its role in promoting regional integration and economic development is irreplaceable. Experts have praised the region’s potential to become a new economic "growth pole," capable of forming the "two corners" that support the coastal economy, the Yangtze River Delta, Pearl River Delta, Bohai Bay, and the Beibu Gulf. This could lead to a new pattern of mutual economic support across the Taiwan Strait and beyond.
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