PX protests expose govt struggle between development, stability(2)

BOON OR BANE

Experts and local residents are divided on the safety risks of PX, while there is serious concern about meeting domestic demand for the chemical, a major raw material for making polyester products.

China was the world's largest consumer of PX in 2013. It consumed 16 million tons of the stuff, more than half of which was imported from overseas, according to Chang Yizhi, a chemical industry researcher with CIConsulting, a leading Chinese industrial consultancy.

While PX project launches have stalled in China under the storm of protests, Singapore's Jurong Aromatics Corporation is building a huge 2.4-billion-U.S.dollar aromatics complex with an annual processing capacity of 800,000 tons of PX, among other chemicals.

Delays to improving China's self-sufficiency in PX supply will force Chinese companies to continue bulk purchases from the international market, said Chang.

A guidance plan released by the Guangdong government in October 2009 envisioned Maoming as a world-class petrochemical base. With an annual production capacity of 600,000 tons, the planned PX plant was obviously one of the fundamentals to achieve that goal.

The project is also listed in China's 12th Five-Year Plan (2011-2015).

The Maoming branch of Sinopec, China's largest refinery, is confident of carrying out the PX project without safety risks.

"PX is not a new thing," said Wang Qiwen, a manager with the company. "PX production has a 30-year history in China and there are 16 PX programs currently running in the country."

"PX has no technology risks and no major accidents have happened in the sector so far," added another company executive, without giving his name.

While one member of Sinopec staff told Xinhua that PX pollution was most likely to happen during storage and transportation, he said that any leakage from petrochemical facilities would likely harm the environment.

The Maoming branch of Sinopec will invite residents to examine existing equipment, facilities and manufacturing processes elsewhere to relieve their anxiety and take their feedback, said a senior executive on condition of anonymity.

But some locals are determined to drive the project away from the city.

"PX projects have been opposed everywhere," said Maoming resident Lin Shuiqun. "Maoming already has a petrochemical plant and the air quality is pretty bad. How can we survive with another PX project?"

The situation is a test for the local government, said Yu Zhangbao, a professor with Xiamen University.

He attributed unanimous opposition to PX projects to lack of communication between officials and the public, and a dearth of platforms for the public to express their opinions and question the government's safety management.

The local government should set up a mechanism to communicate with residents and a compensation mechanism to make up for the safety risks they undertake, Yu said.

"Residents will only support the project if they benefit from it," the academic added.