Corporate Viewpoint: Is your project "risk" risk?

June 20, 2018

The above project is an important way for the rapid development of the chemical industry. Many companies also regard the project as one of the main ways of development. However, in the past, the project mainly focused on whether there was a market, and now it is no use considering the project as a market. It is necessary to consider whether the supply of coal, electricity, gas, and oil is guaranteed. In other words, it must be considered whether there is a risk of a project failure.
In recent years, with the rapid development of China's economy, the continuing tension in energy supply has become more and more serious, and the frequency of 'oil shortage', 'coal shortage' and 'electricity shortage' has greatly increased. The chemical industry, which is known as a large consumer of energy, is greatly affected by it. Many of the high energy-consumption projects that have already been built are difficult to feed under the constraints of many 'wastes', production is stopped, and business benefits decline. Moreover, as people's living standards continue to increase, per capita energy demand will increase significantly, and conflicts between civil and industrial energy, domestic energy and production energy will intensify. At present, the Party Central People's Fundamental concept of "ruling people" is deeply rooted in the people's minds. When civil energy and industrial energy are in conflict, local governments often do not hesitate to abandon their jobs and protect the people. The 'gas shortage' and 'electricity shortage' that have already occurred have already proved this point.
However, unfortunately, many companies do not seem to be aware of this and are still doing everything they can to make a big project. Some companies are not unaware of the risk of doing so, but are optimistic that they will be able to find something that others cannot achieve when their energy or resources are strained. At present, chemical projects launched by various companies are frequently investing hundreds of millions, billions, or even hundreds of billions of dollars. The use of coal, gas, and electricity can be imagined. However, many companies only see the bright market prospects of the project when they are conducting project feasibility studies. However, they rarely consider or are unwilling to consider the risk of 'disruption'.
When the project needs to consider the market, it does not consider the market. The result is likely to be when the project starts to make a loss. However, if the previous project does not consider the energy supply situation and does not evade the risk of 'severance', the result is likely to be the same. Therefore, we are here to ask the chemical companies that are hot on the project: Is your project 'risk' risk?