According to publicly available data, there are currently eight ethylene projects with a production capacity of one million tons or more in China under construction or planning, with a total investment exceeding 310 billion RMB. It is expected that between 2025 and 2028, these projects will release at least 9.7 million tons/year of additional capacity. This scale represents 10% of the total global ethylene production capacity in 2022, signaling China's accelerated progress from an "ethylene powerhouse" to an "ethylene superpower."
The Shandong Oil Refining and Petrochemical Transformation and Upgrading Project is a major initiative by Sinopec and the Shandong Provincial Government to deepen cooperation and promote the transformation and upgrading of the petrochemical industry. The project broke ground on December 19, 2024, in the Qilu Chemical Industrial Zone, Linzi District, Zibo City. The total investment is approximately 24.493 billion RMB, with a construction period of 2 years and 7 months.
The refinery section of the project includes the construction of a 10 million tons/year vacuum distillation unit, a 2.1 million tons/year high-end carbon material unit, a 2 million tons/year hydrocracking unit, a 1.5 million tons/year continuous reforming unit, an 80,000 Nm3/h dry gas hydrogen production unit, an 80,000 tons/year sulfur recovery unit, and a 1 million tons/year coking gasoline hydrogenation unit.
The chemical section includes a 1 million tons/year ethylene cracking unit, a 200,000 tons/year ethylene oxide unit, a 600,000 tons/year catalytic gasoline hydrogenation unit, a 1.3 million tons/year aromatics extraction unit, a 150,000 tons/year butadiene extraction unit, and a 200,000 tons/year ion-membrane caustic soda capacity restoration project, as well as a waste alkali liquid treatment unit, and a 180,000 tons/year aromatic adsorption separation unit, among others.
The Nanjing Yangtze Yangba Olefins Comprehensive Utilization Project is a joint venture between Sinopec Yangzi Petrochemical Co., Ltd. and Yangzi Petrochemical-BASF Co., Ltd., each holding a 50% stake. Located in the Jiangbei New Materials Technology Park in Nanjing, the total investment is approximately 9.142 billion RMB. The project officially started on August 30, 2024, with a construction period of two and a half years (30 months).
The construction includes the establishment of a 1 million tons/year ethylene steam cracking unit (including waste alkali oxidation unit), a 500,000 tons/year gasoline hydrogenation unit, and a 620,000 tons/year aromatics extraction unit, along with the necessary utilities, storage, transportation facilities, and environmental protection measures.
The Yanchang Petroleum Yan'an 10 Million Tons/Year Refining and Chemical Integration Transformation and Upgrading Project is located in the Luochuan Industrial Park, Luochuan County, Yan'an City, Shaanxi Province, with a total investment of approximately 80.29 billion RMB. The construction includes a 10 million tons/year vacuum distillation unit and a 1.2 million tons/year ethylene unit, along with related refinery and chemical units, while shutting down and upgrading existing units.
The Hunan Petrochemical 1 Million Tons/Year Ethylene Refining and Chemical Integration Project has a total investment of 35.68 billion RMB and is located in the Yuelu Green Chemical High-tech Industrial Development Zone in Yueyang, Hunan. The construction involves a 1 million tons/year ethylene unit and its downstream chemical units, as well as supporting refinery upgrades and utility infrastructure.
The Fujian Gulei Refining and Chemical Integration Project Phase II officially started on November 18, 2024, with a total investment of 71.1 billion RMB. The project is a joint venture between the Fujian Provincial Government, Sinopec, and Saudi Aramco. The construction will include the development of a 16 million tons/year refining unit, a 1.5 million tons/year ethylene unit, and a 2 million tons/year paraxylene unit, along with more than 30 refining and chemical units, and supporting utilities and dock facilities.
The Sino-Saudi Gulei Ethylene Project is a joint venture between the Fujian Energy Petrochemical Group and Saudi Basic Industries Corporation (SABIC), with a total investment of approximately 44.8 billion RMB, located in the Gulei Petrochemical Base, Zhangzhou, Fujian Province. The construction includes a 1.5 million tons/year ethylene unit, along with downstream ethylene units such as 100,000 tons/year ethylene oxide/ethylene glycol, 400,000 tons/year HDPE, 600,000 tons/year mLLDPE/HDPE, and 50,000 tons/year hexene-1.
Propylene downstream units include 400,000 tons/year polypropylene (impact-resistant/random), 550,000 tons/year polypropylene (homopolymer/random), 250,000/150,000 tons/year phenol acetone, 270,000 tons/year bisphenol A, and 290,000 tons/year polycarbonate. Additional units include a 910,000 tons/year catalytic gasoline hydrogenation unit (including styrene extraction), a 220,000 tons/year butadiene extraction unit, and a 56,000 tons/year butene-1 unit.
The Luoyang Petrochemical 1 Million Tons Ethylene Project is located in the Advanced Manufacturing Development Zone, Mengjin District, Luoyang City, with a total investment of 27.8 billion RMB. The project is planned to be completed and put into production by December 2025. The construction includes a 1 million tons/year ethylene unit, a 600,000 tons/year catalytic gasoline hydrogenation unit, a 400,000 tons/year aromatics extraction unit, a 300,000 tons/year m-LLDPE unit, a 350,000 tons/year HDPE unit, a 350,000 tons/year polypropylene unit, and 13 other petrochemical production units.
Additionally, refinery adaptive modifications will be implemented.
The Shanghai Petrochemical Comprehensive Technical Transformation and Quality Upgrade Project is managed by Sinopec Shanghai Petrochemical Company, located within the existing factory area in Jinshan District, Shanghai. The planned investment is approximately 21.307 billion RMB, funded by the company itself. The project is expected to take 3 years for the main engineering and 5 years for other facilities.
The construction includes structural adjustments to existing refining units, maintaining the 14 million tons/year refining capacity, and shutting down 18 outdated units such as the 700,000 tons/year ethylene and various oxidation units. On this basis, a 1.2 million tons/year ethylene unit and downstream new material units will be built to enhance the company’s inherent safety and environmental standards and promote industry upgrades.
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