At the China Industrial Gas Industry Association Annual Meeting and Gas Industry Development Seminar held in Hangzhou on September 4–5, Sun Guomin, Vice Chairman and Secretary-General of the China Industrial Gas Industry Association, highlighted a significant shift in industrial gas demand. He noted that the petrochemical, chemical fertilizer, and coal chemical industries have now become the largest consumers of industrial gases, surpassing even the steel industry. This marks a key turning point in the sector's development.
Industrial gases form the backbone of modern industry, and according to international gas authorities, China’s industrial gas market is considered the most dynamic in the world, with an annual growth rate expected to remain around 15%. This sustained growth reflects the increasing reliance on industrial gases across various sectors.
Gas plays a critical role in the production of the "three major chemicals"—petrochemicals, fertilizers, and coal chemicals. Oxygen, for instance, is directly involved in oxidation reactions as a raw material, while it also acts as a gasification agent in the production of synthetic ammonia from coal or heavy oil. Nitrogen is widely used for sealing, replacement, drying, and safety protection. During the "Eleventh Five-Year Plan" period, China planned to upgrade several large oil refineries and fertilizer plants, establishing new ethylene and aromatic hydrocarbon production bases. These projects required massive amounts of industrial gases, prompting the construction of large-scale air separation units, which significantly boosted the gas industry.
Moreover, emerging technologies such as coal-to-oil, integrated coal gasification combined cycle power generation, liquefied natural gas (LNG) terminals, direct reduction ironmaking, and hydrogen energy are set to open up new markets for the industrial gas sector. These innovations not only expand the applications of industrial gases but also drive the need for more efficient and sustainable supply chains.
Delegates at the conference emphasized that chemical industry parks will become the primary model for future petrochemical projects. The "integrated production and socialized supply" model of industrial gases aligns well with the principles of a circular economy. Under this model, a third-party company invests in and operates the entire gas production and supply infrastructure within the park. Through long-term contracts, it provides centralized production of all or most types of industrial gases needed by the enterprises in the park, ensuring efficiency, cost-effectiveness, and environmental sustainability. This approach is expected to gain wider adoption in the coming years.
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