Dalian Petrochemical: Public Notice on the Construction of a New 1.4 Million Tons/Year Ethylene Plant and Its Downstream Facilities

Project Name: China National Petroleum Corporation Dalian Petrochemical Company (Xizhong Island) Refining and Chemical Integration Project

project nature: new construction

Construction location: Xizhong Island Petrochemical Industrial Park, Changxing Island Economic and Technological Development Zone, Dalian City

Construction content: This project plans to build new facilities with an annual capacity of 10 million tons of refining and 1.4 million tons of ethylene, along with downstream facilities, and supporting storage and transportation, utility engineering, and auxiliary facilities. The project scope includes the refining and chemical plant area, wharf, and off-site pipelines, as well as off-site power supply, railway, and other facilities.

project background

• The Dalian petrochemical relocation project has a long history. In 2013, the National Development and Reform Commission proposed the layout of seven major petrochemical industry bases across the country, with the Dalian Xizhong Island (Changxing Island) Petrochemical Industrial Park becoming the preferred location for the relocation of Dalian Petrochemical.
• On November 20, 2022, a signing ceremony for the cooperation framework agreement on the relocation and transformation project of Dalian Petrochemical of China National Petroleum Corporation was held by the Dalian Municipal Government, clarifying the construction scale and objectives of the project.

project planning

• Phase one project: The construction of new facilities will include 10 million tons/year of refining, 1.4 million tons/year of ethylene, and downstream chemical new materials, etc., to actively build a green, low-carbon, efficient, and new type of integrated refining and petrochemical project.
• Phase II project: After full completion and commissioning, the final capacity on Xizhong Island will be 20 million tons of refining and 2.4 million tons of ethylene, which is basically equivalent to the current atmospheric and vacuum distillation capacity of Dalian Petrochemical. After relocation, the ethylene capacity will increase by 900,000 tons.

project significance

• Promote industrial upgrading: The project will strongly promote the transformation and development of Dalian's petrochemical industry towards greener, higher-end, and more intelligent directions, drive the optimization of layout and industrial upgrading of Dalian's petrochemical industry, and help build a competitive modern industrial system.
• Enhancing Regional Economy: The implementation of the project will transform Dalian's petrochemical product structure from being mainly oil processing to expanding towards mid-to-downstream high-value-added industrial chains, becoming an important economic growth pole for Dalian in the future.
• Enhancing industry competitiveness: As the project progresses, the international competitiveness and influence of the Dalian Changxing Island (Xizhong Island) Petrochemical Industry Base will rapidly increase, accelerating the cluster development of leading petrochemical projects such as refining and chemical integration, as well as related industrial projects.

supporting facilities construction

• Pier construction: The first phase of the working vessel pier project in the Changxing Island port area of Dalian Port, Zhongdao operation zone, has been completed and is about to be put into use. Two ten-thousand-ton liquid piers are under accelerated construction.
• Public utility corridor project: The park plans to construct a 13.4-kilometer public utility corridor, including 10 kilometers of material corridors and 3.4 kilometers of power corridors. Currently, 70% of the material corridors under construction have been completed.
• Road construction: The supporting road project for the Xizhong Island Refining and Chemical Industry Park is about to enter the construction phase. East 3rd Street has been successfully completed and opened to traffic, while the extension of East 2nd Street is accelerating the processing of preliminary procedures.

• On October 28, 2024, the official website of the Dalian Municipal Government released that the relocation of Dalian Petrochemical has pressed the "acceleration key," and the construction of supporting roads for the Xizhong Island Refining and Chemical Industry Park, where it is about to move in, has started.

• On April 11, 2024, the team from China Huanqiu Engineering Corporation Beijing Branch, the unit responsible for compiling the environmental impact assessment report for the integrated refining and petrochemical project of PetroChina Dalian Petrochemical (Xizhong Island), went to the Xizhong Island Petrochemical Industry Base to conduct a field survey of the project site and held a symposium to understand the materials needed for the compilation of the environmental impact assessment report. Wu Junfeng, Deputy Secretary of the Party Working Committee and Deputy Director of the Management Committee, attended the symposium.

• In March 2024, with a total investment of 68.5 billion yuan, the agreement for the relocation and upgrade project of CNPC Dalian Petrochemical was officially signed.

• On the morning of March 10, 2023, Ren Lixin, member of the Party Leadership Group and Deputy General Manager of China National Petroleum Corporation, inspected the progress of the supporting infrastructure construction for the Xizhong Island Refining and Chemical Project.

The relocation project of Dalian Petrochemical of CNPC has a long history. In 2013, the National Development and Reform Commission in the "Petrochemical Industry Planning and Layout Scheme (Draft for Comments)" proposed to set up seven major petrochemical industry bases across the country. Among them, Dalian Xizhong Island (Changxing Island) Petrochemical Industrial Park, as an important part and specialized park of the national-level economic and technological development zone - Changxing Island Economic and Technological Development Zone, became the preferred location for the relocation of Dalian Petrochemical.

In 2014, the "Environmental Impact Report for the Dalian Petrochemical Company of China National Petroleum Corporation Changxing Island Refining and Chemical Project (Phase I) 15 million tons/year Russian Oil Processing Project" was publicly displayed online. The environmental impact assessment report shows that China National Petroleum Corporation and the Dalian Municipal People's Government signed the "Cooperation Framework Agreement for the Dalian Changxing Island Refining Project," planning to relocate the 20.5 million tons/year crude oil processing capacity of the Dalian Petrochemical Company of China National Petroleum Corporation to Changxing Island. This project processes 15 million tons of imported Russian crude oil annually. According to the plan of China National Petroleum Corporation, the Changxing Island refining and chemical project is part of the relocation and renovation project of the Dalian Petrochemical Company, with the project being constructed in phases; Phase I is new construction, and Phase II involves relocation.

Focusing on the basic chemical raw materials released by the relocation and transformation project of CNPC Dalian Petrochemical, Dalian City has fully leveraged its "chain leader" role, and has already engaged in discussions with more than 20 high-quality downstream industry projects that have both technology and market. After the entire industrial chain is put into production, it is expected to form an investment of 120 billion yuan, driving output value exceeding 150 billion yuan, which will further strongly promote the construction of Dalian's "world-class green petrochemical base" and the realization of the city's development goal of "trillion yuan in three years."

The new refining and chemical project will strongly promote the transformation and development of Dalian's petrochemical industry towards greener, higher-end, and more intelligent directions, drive the optimization of layout and industrial upgrading of Dalian's petrochemical industry, and help our city to accelerate the construction of a modern industrial system with competitiveness.