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Industry News Current Location:Nanjing Rapide >> Industry News >>
 
 
Total investment exceeds 300 billion yuan, six major planned petrochemical projects by 2026!

Source: Energy and Raw Materials Industry, Process Industry Network Date: 2026-03-19

1. Shandong Yulong Petrochemical Downstream and Extended Industrial Chain Project

With a total investment of 117.857 billion yuan, located in Yantai, Shandong, the project is planned to start construction in 2026

and is expected to be fully operational in 2029. The main equipment to be purchased includes atmospheric and vacuum distillation

units, ethylene cracking furnaces, polyethylene/polypropylene polymerization reactors, aromatic separation towers, ethylene

oxide/ethylene glycol reactors, POE production units, large compressors, heat exchangers, storage tanks, DCS control systems,

and SIS safety instrument systems.

In March 2026, Shandong Yulong Petrochemical Co., Ltd. officially launched the land reclamation project for the downstream and

extended industrial chain project, planning to reclaim land in the sea area on the west side of Longkou City, Yantai, in the five

islands of Yulong Island, laying a solid spatial foundation for the integrated refining and downstream deep processing project.

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2. CNPC Dalian Petrochemical (West Zhongdao) Refining and Chemical Integration Project


With a total investment of 68.5 billion yuan, it is located in the West Zhongdao Petrochemical Industrial Park in Dalian, Liaoning.

Construction is planned to start in 2026, with production expected around 2030.

The project mainly involves building a 10 million tons/year chemical-type refinery, a 1.2 million tons/year ethylene unit and its

downstream low-carbon olefin comprehensive utilization facilities, oil storage and transportation,

utilities, auxiliary facilities, and off-site works. Currently, the project is moving forward from reserve to planning.

The project will construct a 10 million tons/year chemical-type refinery (partially reusing existing Dalian Petrochemical process

units and equipment), a 1.2 million tons/year ethylene unit and downstream low-carbon olefin

comprehensive utilization facilities, oil storage and transportation, utilities, auxiliary facilities, etc.

The project will also build a 10 million tons/year refinery, a 1.2 million tons/year ethylene unit, and supporting downstream

chemical units. Downstream products will include one 400,000 tons/year PP unit, two 450,000

tons/year FDPE units, one 300,000 tons/year LDPE unit, one 200,000 tons/year POE unit, and one 300,000 tons/year CHPPO unit.

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3. Sinopec Yueyang Ethylene Refining and Chemical Integration Project

With a total investment of 35.68 billion yuan, it is located in Yueyang, Hunan. Construction is planned to start in 2026, with

production expected by 2028. The main equipment to be purchased includes a 1 million tons/year ethylene unit, cracking

furnaces and polymerization reactors for 14 downstream chemical units, ethylene oxide/ethylene glycol units, polyethylene/

polypropylene units, butadiene extraction units, styrene units, storage tanks, pumps and valves, heat exchangers, compressors,

DCS control systems, SIS safety instrumented systems, and more.

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4. Fujian Zhongsha Gulei Ethylene Project

With a total investment of 42.07 billion yuan, located in Gulei, Zhangzhou, Fujian, by 2026 it will be in the equipment installation

stage, with production planned for 2026. Major equipment purchases include a 1.5 million tons/year ethylene cracking unit, EO

reactor, product recovery tower, reboiler, polyethylene/polypropylene units, propylene oxide unit, large compressors, heat exchangers,

towers, storage tanks, environmental protection equipment, and intelligent control systems.

As of March 2026, the core progress of the Zhongsha Gulei Petrochemical Integrated Project (1.5 million tons/year ethylene) has

all been realized:

- Overall progress: more than 93% completed, fully entering equipment installation, pipeline construction, and production preparation stages.

- Core units: Main installation of the 1.5 million tons/year ethylene cracking unit is fully underway.

Key milestones:

- The world's largest EO reactor (9.3 meters in diameter, weighing 1,540 tons) has been lifted into place.

- Erection of five super-large towers in the ethylene unit completed in 32 days, cutting the schedule nearly in half.

- All 10 of the country's largest cracking furnaces have topped out.

- The country's largest group of 44 large spherical tanks has topped out.

- The eastern water system has been successfully handed over, and the plant's first key supporting unit has moved into startup preparation.

- Timeline goal: Completed and put into production in the second half of 2026.

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5. Qilu Petrochemical Lu Oil and Lu Refining Transformation and Upgrade Project

With a total investment of 24.4 billion yuan, it is located in Zibo, Shandong, with construction planned for 2026 and

production expected to start in 2027. The main equipment to be purchased includes a 10 million tons/year refining

unit, 1 million tons/year ethylene unit, catalytic cracking unit, hydroprocessing unit, gas separation unit, polyethylene/

polypropylene units, aromatics extraction unit, large towers, reactors, compressors, pumps and valves, heat exchange

equipment, environmental protection equipment, etc.

On February 28, the Qilu Petrochemical Lu Oil and Lu Refining Project reached an important milestone. The first unit, the

coking liquefied gas desulfurization and mercaptan removal unit, successfully passed mechanical completion inspection.

Since construction officially began last September, the team has been steadily ensuring safety, quality, and schedule

management throughout the entire process, making sure all construction tasks are completed on time and to a high standard,

laying a solid foundation for the smooth progress of the project. Employees were on-site to verify and confirm the status of

equipment and various processes, preparing for the next step of starting up the unit. The Qilu Petrochemical Lu Oil and Lu

Refining Project is an important result of the deepened strategic cooperation between Sinopec and Shandong Province,

planning the construction of units like atmospheric and vacuum distillation, high-end carbon material ethylene, and downstream

supporting facilities. Once built, it will further optimize the company's product structure and raw material supply, promote

collaborative growth of related industries, inject strong momentum into the local economy, and push China’s petrochemical

industry toward intelligent, green, and integrated development. The coking liquefied gas desulfurization and mercaptan

removal unit, which passed mechanical completion inspection, is the first unit started in this project, with a designed processing

capacity of 75,000 tons/year, and will provide valuable experience for the construction of subsequent units.

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6. Dushanzi Petrochemical Tarim 1.2 Million Tons/Year Phase II Ethylene Project


With a total investment of about 20 billion yuan, it is located in Dushanzi, Xinjiang. It is in the final stages of construction

in 2026, with handover planned for June 30, 2026, and production starting on September 30. The main equipment

purchases include a 1.2 million tons/year ethylene unit, fully electric-driven ethylene triple machinery, low-concentration

carbon dioxide capture equipment, reactors, heat exchangers, compressors, towers, DCS control system, environmental

protection equipment, etc., with over 98% of the equipment domestically produced. Currently, the Tarim Phase II ethylene

project is in the critical final sprint stage, with key milestones being consecutively achieved, equipment debugging

proceeding in an orderly manner, smart technology boosting efficiency, and safety management online throughout.

In the early hours of March 15, the No. 1 sewage plant evaporative centrifuge successfully started trial operation,

producing mixed salts smoothly and achieving an important breakthrough in a key sewage treatment process.

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