Growth drives investments in China

China is the second-largest consumer of chemicals behind the US and its market is expected to grow to about $800 billion within 10-15 years. There is exceptional growth in industrial output and export and a strong consumer market, which will result in a major increase in demand for plastics and chemical. There will be continued major investment in refineries and steam crackers in China, with grassroots projects as well as expansions of small plants to make them world scale. Crackers in China are becoming bigger, reaching the global annual average of 450,000 m.t. in 2005 and all new crackers to be built in the country are expected to be world scale. Increasing volatility and rising prices of crude oil have prompted China to intensify its focus on coal as an alternative energy source. China's petroleum consumption will exceed 450 million m.t./year by 2020 and reliance upon imports may hit 60%-62% above the 58% dependency of the US.