Review | twelve major refining and chemical integration projects

Refining and chemical integration has become the mainstream model and an irreversible development trend in the global petrochemical industry. Its core logic lies in maximizing resource utilization by coordinating upstream and downstream production processes, thereby achieving cost reduction and efficiency enhancement, as well as improving the comprehensive competitiveness of enterprises.

For enterprises, developing refining and chemical integration is an inevitable choice to pursue cost minimization, profit maximization, and risk diversification. From a national perspective, it is a key measure to align with industrial upgrading, ensure energy security, and implement a green development strategy. As the highest form of future development in the petrochemical industry, the field of refining and chemical integration has become the "main battlefield" where industry giants compete for future market dominance.

There are currently numerous integrated refining projects in China, encompassing various stages such as completed, under construction, and planned. These projects are mainly distributed in coastal areas, such as Zhejiang, Guangdong, Fujian, and Liaoning provinces, as well as some inland resource-rich areas, such as Xinjiang.

Company: Shandong Yulong Petrochemical Co., Ltd. (Shandong State-owned Assets + Private Refining Integration Platform)

Project location: Longkou, Yulong Island, Yantai, Shandong

Total investment: ≈127.4 billion yuan

Construction scale: 20 million tons/year of refining, 2×1.5 million tons/year of ethylene, 3 million tons/year of aromatics and downstream PE, PP, EVA, etc.

Construction content: Focused on the entire industrial chain of "refining—olefins—polyolefins—new materials," supplemented by nine 30,000-ton berths, seawater desalination, enclosed coal storage, etc.

Project significance: Shandong Province's "Number One Project," which aims to phase out 6.96 million tons of outdated local refining, and increase the self-sufficiency rate of high-end polyolefins and EVA.

Latest development: On August 15, 2025, the nation's largest domestically-produced 1.5 million tons/year ethylene "three-machine" turbine achieved a successful single trial. The project has transitioned from construction to full-scale joint commissioning and testing; the supporting terminal was completed and accepted in November 2024.

Affiliated company: Fujian Refining & Petrochemical Company Limited (51% Sinopec, 49% Fujian Province)

Project location: Gulei Petrochemical Base, Zhangzhou, Fujian

Total investment: 71.1 billion yuan

Construction scale: 16 million tons/year for refining, 1.5 million tons/year for ethylene, 2 million tons/year for aromatics, with a total of more than 30 units and a 300,000-ton crude oil berth.

Construction content: Based on the existing operation of the first phase of a 1-million-ton ethylene project, new units for heavy oil cracking, high-end polyolefins, and elastomers will be built to form a "refining-olefin-downstream new materials" cluster.

Project significance: The largest industrial investment project in Fujian Province to date, aiming to develop the Gulei base into a cross-strait petrochemical cooperation demonstration zone.

Latest progress: Approved by the Fujian Provincial Development and Reform Commission on July 16, 2025, officially commenced on November 18, 2025, currently in the detailed design and site leveling stage.

Company: Huajin Aramco Petrochemical Co., Ltd. (Norinco 51%, Saudi Aramco 30%, Panjin Xincheng 19%)

Project location: Liaoning Panjin Liaobin Coastal Economic Development Zone

The total investment is 83.7 billion yuan.

Construction scale: 15 million tons/year of refining, 1.65 million tons/year of ethylene, 2 million tons/year of paraxylene, supported by 17 refining units, 13 chemical units, and 2 coal chemical units.

Construction Content: Integration of "oil, chemical, and coal," stable supply of 210,000 barrels/day of crude oil from Saudi Aramco, downstream focusing on high-end polyolefins and new materials.

Project Significance: A landmark project for the "Belt and Road" energy cooperation, and a key increment for the revitalization of the old industrial base in Northeast China.

Latest progress: On October 17, 2025, a joint task force was established with Panjin Customs; civil construction and ground pipeline work are in full swing, the power station and sulfur recovery have begun steel structure installation, with plans for mechanical completion in 2025 and full production in 2026.

Company Affiliation: PetroChina Guangxi Petrochemical Company

Project location: Guangxi Qinzhou Port Economic and Technological Development Zone

The total investment is approximately 30.5 billion yuan.

Construction scale: On the basis of the existing 10 million tons/year refinery, an additional 1.2 million tons/year ethylene and 11 downstream chemical units will be added.

Construction content: Construction of new ethylene cracking, HDPE/FDPE/EVA, polypropylene, butadiene, and aromatics extraction units, and adaptive transformation of 2.2 million tons of wax oil hydrogenation and 2.4 million tons of diesel hydrogenation.

Project Significance: Fill the gap of a million-ton ethylene production capacity in the southwestern region and establish a "green petrochemical export base oriented towards ASEAN."

Latest update: As of September 15, 2025, the high-pressure propane removal tower of the ethylene project has been hoisted into place, and all five major towers of the ethylene project have been topped out. The overall progress of the installation is at 47.8%, with plans to complete by the end of 2025 and commence feedstock input and startup in the first quarter of 2026.

Company: Sinopec Hunan Petrochemical (China Petroleum & Chemical Corporation Holding)

Project Location: Yunxi District, Yueyang, Hunan Province

The total investment is approximately 19.3 billion yuan.

Construction scale: 1 million tons/year ethylene and 14 downstream chemical units (EVA, HDPE, LLDPE, CHPPO, Bisphenol A, etc.)

Construction content: Implement adaptive modifications to the refining section and establish a new chemical section consisting of an olefin-polyolefin-propylene oxide-BPA-new materials industrial chain.

Project significance: The leading project among the "Top Ten Industrial Projects" in Hunan Province, providing high-end synthetic materials and new energy battery separator materials for the central region.

Latest progress: On July 8, 2025, the trial tamping of the main plant area will commence; safety assessment, environmental assessment, and energy assessment have all been approved. The project is now in the foundation treatment and long-cycle equipment procurement stage.

Owned by: ExxonMobil (Wholly owned)

Project Location: Daya Bay Petrochemical Zone, Huizhou, Guangdong

Total investment: ≈10 billion USD (combined for two phases)

Construction scale: Phase I with an annual capacity of 1.6 million tons of ethylene and downstream high-end PE, PP, and specialty elastomers.

Construction content: World-class linear alpha-olefin, metallocene polyethylene, and thermoplastic polymer units, supplemented by a 200,000-ton liquid terminal, storage, and environmental protection facilities.

Project Significance: A major national foreign investment project and a core component of the high-end polyolefin supply chain in South China.

Latest progress: Phase 1 station building, substation, and telecommunication cabinet room passed joint inspection on September 4, 2025; High-standard mechanical completion achieved on June 30, 2025, and linkage testing is about to begin.

Company: BASF SE (Wholly Owned)

Project Location: Donghai Island, Zhanjiang, Guangdong

Total investment: approximately 10 billion euros (accumulated until 2030)

Construction scale: Phase one includes 1 million tons/year of ethylene and downstream engineering plastics, TPU, glycol ether, etc.; eventually forming an annual production capacity of 2 million tons of new chemical materials.

Construction content: An "intelligent" integrated base powered by 100% renewable energy, including steam cracking, carbonyl synthesis, specialty polymers, and green electrochemical devices.

Project significance: BASF's third largest integrated base globally, serving high-end markets such as automotive, new energy, and consumer electronics.

Latest developments: On March 21, 2025, the diglycol monoether plant broke ground; on January 18, 2025, the world's largest single TPU production line was put into operation, with all the first phase units entering operation.

Company: Nanjing Yangzi-Yangba Olefins Co., Ltd. (Sinopec 50%, BASF 50%)

Project location: Jiangbei New Material Technology Park, Nanjing, Jiangsu

Total investment: 9.14 billion yuan

Construction scale: 1 million tons/year of ethylene, 620,000 tons/year of aromatics extraction, 500,000 tons/year of gasoline hydrogenation.

Construction content: Provide raw materials for the existing ethylene gap in Yangba, while extending to downstream high-value-added POE and high-end polyolefin new materials.

Project Significance: The core project of the third round of cooperation between Sinopec and BASF, establishing the "light hydrocarbons-olefins-high-end materials" route.

Latest progress: On-site civil construction started on August 30, 2025, and international bidding for long-cycle equipment has been initiated.

Affiliated Company: CNOOC and Shell Petrochemicals Company (CNOOC 50%, Shell 50%)

Project location: Daya Bay, Huizhou, Guangdong

Total investment: approximately 50 billion RMB (combined for three phases)

Construction scale: 1.6 million tons/year of ethylene and 16 downstream units (including α-olefin, PAO, polyolefin elastomer, etc.)

Construction content: Form a "refining-olefins-new materials" cluster with the already operational phases one and two, creating a world-class petrochemical base.

Project significance: The first domestic demonstration of green ethylene production integrating CO₂ capture and polyolefin production.

Latest progress: The detailed design commencement meeting for Section 2025-08 has been held, with on-site geological investigation and pile foundation construction advancing simultaneously.

Company: Sinopec Tahe Refining & Chemical Co., Ltd.

Project location: Kuqa City, Aksu Prefecture, Xinjiang

The total investment is approximately 22 billion yuan.

Construction scale: The refinery will be expanded from 5 million tons per year to 8.5 million tons per year; a new 800,000 tons per year ethylene, 800,000 tons per year aromatics and downstream PE, PP, butadiene, etc. will be built.

Construction content: In the old plant area, build a new 3# atmospheric and vacuum distillation unit, a 2.2 million ton delayed coking unit, and a fluidized bed residue hydrogenation unit; In the new chemical area, construct an 800,000-ton ethylene unit, a 400,000-ton polyethylene/polypropylene unit, etc.

Project Significance: The first large-scale ethylene project in southern Xinjiang will drive the local conversion of Xinjiang's oil and gas resources and the new materials industry chain.

Latest progress: The environmental assessment approval was completed in September 2025. The EPC general contract for the No. 3 CDU (Crude Distillation Unit) and central control room has been awarded. The refinery is planned to start production in June 2028, and the ethylene plant is expected to begin operation in October 2029.

Company: CNOOC Ningbo Daxie Petrochemical Co., Ltd.

Project Location: Daxie Development Zone, Ningbo, Zhejiang

Total investment: 21 billion yuan

Construction scale: 12 million tons per year of refining, 1.2 million tons per year of olefins (ethylene + propylene)

Construction content: The first set of "direct heavy oil cracking to produce chemicals" technology in China will be adopted, reducing unit energy consumption by 30% and decreasing carbon emissions by 200,000 tons annually.

Project Significance: The largest heavy oil-to-olefins base in the country, providing raw materials for high-end polyolefins and synthetic materials in the Yangtze River Delta.

Latest progress: In August 2025, the reactor/regenerator of the core unit will be topped out, fully entering the equipment installation phase, with plans to start feeding in the first half of 2026.

Affiliated Company: Dalian Petrochemical Company of China National Petroleum Corporation

Project location: Xizhong Island, Changxing Island, Dalian, Liaoning

Total investment: approximately 60 billion yuan (Phase I)

Construction scale: Phase I with 10 million tons/year of refining and 1.4 million tons/year of ethylene; ultimately forming 20 million tons/year of refining and 2.4 million tons/year of ethylene.

Construction Content: Relocate the Dalian old petrochemical base, adopt green and low-carbon processes, and develop downstream new chemical materials, hydrogen energy utilization, and CCUS (Carbon Capture, Utilization, and Storage).

Project Significance: The new core layout of the national petrochemical industry in the "Bohai Rim" region, enhancing the self-sufficiency rate of ethylene in Northeast China and extending its reach to the Japanese and Korean markets.

Latest progress: The sea use approval and pre-reclamation were completed in March 2025. Currently, foundation treatment and EPC bidding are underway, with construction scheduled to start in Q4 2025.

From the coastal areas of Yulong Island in Shandong, Gulei in Fujian, and Huizhou in Guangdong, to the inland regions of Kuqa in Xinjiang and Yueyang in Hunan, these integrated refining and chemical projects, covering different regions and involving various investment entities, collectively form the core matrix of China's petrochemical industry transformation and upgrading. They not only undertake the industrial upgrading tasks of "eliminating outdated capacity and developing high-end materials," but also bear the national strategic missions of "ensuring energy security and promoting green and low-carbon development." Furthermore, through the model of "integrating oil and chemicals, and linking upstream and downstream," they continuously enhance China's voice in the global petrochemical industry chain.