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Xinjiang is one of the regions in China with the strongest investment in the chemical industry, and it is also a key area for investment in coal chemistry and new energy sectors. The Xinjiang market not only boasts abundant fossil resources but also enjoys favorable geographical advantages. As the European chemical industry continues to decline, petrochemical products from Xinjiang could serve as an important supplement for Europe in the future. What are some large-scale chemical industry projects in Xinjiang recently? How is the project progressing? 1. For the second phase of the 1.2 million tons/year ethylene project in Tarim by Dushanzi Petrochemical, as of April 2025, 90% of the model reviews have been completed. The project is expected to be completed in 2027. The total investment in this project exceeds 21.8 billion yuan; it has an annual production capacity of 1.2 million tons of ethylene, 450,000 tons of high-density polyethylene, and 300,000 tons of low-density polyethylene (including the capacity for EVA production), along with facilities for producing styrene-butadiene rubber and aromatic hydrocarbon extraction. Pingtouge believes that this project is a crucial element in CNPC’s strategic development in Xinjiang, and it holds great significance for the expansion of CNPC’s presence in the northwest region as well as for its internal efforts related to oil conversion. 2. Sinopec Tahe Refining and Chemicals’ \"refining and chemical integration\" project – this project received its environmental impact assessment in June 2025; construction has now begun, with an initial target for commissioning in 2026–2027. The project involves an investment of nearly 30 billion yuan, which will increase the refining capacity of the Tahe Refining and Chemical Complex from 5 million tons per year to 8.5 million tons per year. It also includes the construction of new facilities for producing 800,000 tons per year of ethylene and 800,000 tons per year of aromatics, with the aim of manufacturing high-quality polyolefins and PX. Pingtouge believes that this is an important step in Tarim Refining and Chemical’s efforts to convert oil, and it plays a crucial role in the company’s long-term sustainable development. Once this project is put into operation, Tahe Refining & Chemical will enter the realm of \"refining and chemical integration\". 3. The Wuhan Petrochemical Aromatics Industry Chain Project was launched in March 2025, with production scheduled to begin in the third quarter of 2027. The total investment amounts to 6.492 billion yuan, and it includes the expansion and renovation of aromatics facilities as well as the construction of a new PTA plant with an annual capacity of 2 million tons, thereby establishing a complete industrial chain that covers refining, chemical processing, and textile manufacturing. Pingtouge believes that Wushihua is a typical oil refining enterprise, and the implementation of this project is of great significance for its development in the fiber and textile industry; it can effectively address the shortage of fiber raw materials in Xinjiang. 4. **The Energy Group’s 4 million tons per year coal-to-oil project in Hami – construction of this project began in March 2024. It is the first project in Xinjiang to utilize second-generation direct liquefaction technology. The total investment in this project amounts to 170 billion yuan; it involves the production of 3.2 million tons of directly liquefied oil products per year, as well as 800,000–1 million tons of indirectly liquefied oil products. Phase two of the project will involve the production of high-value chemical products such as PX and PGA. Pingtouge believes that the second-generation coal-to-oil project is an important strategic demonstration project in China; it is of great significance for addressing the shortage of oil products in Xinjiang, increasing the utilization of coal, and improving China’s technology for coal-to-oil production. 5. The 800,000-ton/year coal-to-olefins project by Xinjiang Shanneng Chemical Industry. Approved in February 2025, Phase I of the project is currently under civil construction. The total investment exceeds 20 billion yuan. The project utilizes pulverized coal pressurized gasification coupled with green hydrogen technology to produce 800,000 tons of olefins annually; these olefins are used for the production of polyethylene and polypropylene. Associated facilities include an air separation unit and a sulfur recovery unit. Think Xin believes that, this project is an important coal-to-olefins project in Xinjiang, and it is also one of the key coal-to-olefins projects in China in recent years. It plays a significant role in increasing the utilization of local coal in Xinjiang, developing high-end new material products, and addressing the shortage of polyolefin supply in the region. 6. The second phase of Xinjiang Xinye Energy Chemical’s 200,000 tons per year BDO production project was handed over in July 2024, with commissioning scheduled for the end of 2024. The total investment in this project is 1.8 billion yuan, and it covers the production of BDO as well as downstream products such as spandex, PTBEG, and biodegradable plastics. Pingtouge believes that this project is an important representative of the BDO industry chain downstream of calcium carbide in Xinjiang; this chain can be extended to industries such as spandex and biodegradable plastics, and it plays a role in the development of biodegradable plastics in Xinjiang. 7. The 300,000-ton/year BDO project of Xinjiang Zhongtai Jinhui Technology: the construction progress of this project reached 80% by June 2025, with completion expected by the end of 2025. The total investment in this project is 5.1 billion yuan, and it includes supporting calcium carbide acetylene and formaldehyde production facilities. The annual output of BDO, as well as downstream products such as PTMEG and PBAT, will be 600,000 tons in total. Thinkcore believes that Xinjiang has abundant calcium carbide resources, and this project makes full use of this advantage to develop industries such as biodegradable plastics, which holds certain significance for the local development of Xinjiang. 8. The 6 million tons per year comprehensive utilization project for low-grade coal by Xinjiang Jiaguo Weiye: This project received approval for its environmental impact assessment in November 2023. It will be built in two phases, with a total investment of 7.037 billion yuan; Phase 1 will involve the production of 1.8 million tons of semi-coke, 80,000 tons of LNG, and hydroprocessed coal tar products ； In the second phase, 180,000 tons of methanol and 350,000 tons of acetic acid will be produced. Pingtouge believes that this project is one of the few coal coking projects in recent years. The coal coking industry is developing relatively slowly and is also facing the prospect of industrial consolidation; the implementation of this project will play a role in helping Xinjiang maintain the development of its traditional coal chemical industry, as well as ensuring the supply of LNG and semi-coke. 9. The 15 million tons per year coal value-added utilization project of Xinjiang Guanghui New Energy – this project is already in operation, and it is accompanied by a CCUS facility that enables the production of 7.14 million tons per year of high-quality coal, 1.5 million tons per year of coal tar, and 777,600 tons per year of LNG; hydrogen and liquid carbon dioxide are also produced as by-products. ThinkCore believes that this project is an important initiative for Guanghui Energy’s development in Xinjiang; it holds great significance for the sustainable development of Guanghui Energy and constitutes an important strategic project for the company during its 14th Five-Year Plan period. 10. The China Coal Hami 350 megawatt/1,400 megawatt-hour energy storage-enabled new energy project commenced construction in July 2024, with completion scheduled for 2025. The total investment amounts to 7.4 billion yuan; it includes 1,200 megawatts of wind power and 200 megawatts of photovoltaic power, generating 3.5 billion kWh of electricity per year, along with an accompanying energy storage system. Think Xin believes that, this project is a model initiative for the development of new energy storage in Xinjiang, and it holds great significance for addressing the issues related to the generation, storage, and transmission of new energy in that region. 11. The Three Gorges Energy New Energy Base in the Taklamakan Desert of southern Xinjiang – this project was launched in November 2024, with completion scheduled for 2027–2028. The total investment amounts to 71.8 billion yuan; it includes 8.5 million kilowatts of photovoltaic capacity, 4 million kilowatts of wind power capacity, as well as 6 units of coal-fired power plants with a capacity of 660,000 kilowatts each and 5 million kilowatt-hours of energy storage capacity. The electricity generated will be supplied to Sichuan and Chongqing. Pingtouge believes that this project is an important one in the field of new energy in Xinjiang; both its investment level and scale place it among the top new energy projects in the region. It serves as an important model project for the development of photovoltaic power, wind power, and coal-fired combined cycle power generation in Xinjiang. 12. The 350MW hydrogen production project in Hutubi County is currently in the planning stage. The planned investment amount is 499 million yuan; it involves the annual production of 10,000 tons of green hydrogen for use in coal chemical processes, along with the development of a hydrogen production industrial park using water electrolysis. 13. The Xinjiang Haoyuan Chemical Photoelectric Hydrogen Production Integrated Project – the environmental impact assessment for this project was made public in December 2024. It is to be built in three phases, with commissioning expected around 2026. Phase 1 will have an annual production capacity of 400,000 tons of ammonia, 500,000 tons of compound fertilizers, and 120,000 tons of melamine, along with facilities for hydrogen production via water electrolysis. Pingtouge believes that this project is one of the few green ammonia projects in Xinjiang, and it represents an important aspect of the development of new energy in the region; it holds significance for the advancement of green ammonia and hydrogen energy industries in Xinjiang. 14. The foam aluminum new material project in the Ganquanbao Economic Development Zone: This project was signed in November 2024, with construction beginning in April 2025. The total investment amounts to 2.5 billion yuan; it involves the production of high-performance foam aluminum materials for use in new energy vehicles, aerospace, and construction industries. Pingtouge believes that there is a severe shortage of local new material supplies in Xinjiang, which relies on resources transferred from other regions; this project can help alleviate the shortage of foam aluminum materials in that area. 15. The 300,000-ton/year PGA (polyglycolic acid) project by Guoneng Xinjiang Chemical Industry. This is a proposed project with a total investment exceeding 9.8 billion yuan; it includes both the 300,000-ton PGA production facility and a co-production unit for 50,000 tons of ethylene glycol. ThinkCore believes that this project is a large-scale PGA project in China, and it holds great significance for the expansion of the supply of PGA in our country. Implementing this project in Xinjiang poses the challenge of market absorption capacity. 16. The Xinjiang Lanshan Tunhe 1.2 million tons per year PTA project is a proposed project; it is accompanied by a 1.1 million tons per year coal-to-methanol facility, covering products such as PTA and downstream textile products. Thinkcore believes that this project is an integrated initiative for the coal-based chemical fiber industry chain, and it holds great significance for improving the local chemical supply in Xinjiang. However, this project also faces challenges related to coal-based aromatic hydrocarbon technology, as well as the scale of demand from the downstream fiber market. 17. Xinjiang Zhonghe Hezhong’s 1 million tons per year acetic acid production facility and related downstream projects; this project will be in the trial operation phase by 2025. The products produced include acetic acid, vinyl acetate, polyvinyl alcohol, etc., which are mainly used in coatings and adhesives. Think Xin believes that this project falls under the category of large-scale acetic acid and related downstream products; it features a long industrial chain and a high degree of complexity. However, the market supply and demand conditions for the products of this project are becoming increasingly competitive, and the local consumption capacity in Xinjiang poses a challenge. 18. Xinjiang Qinghua Energy’s coal-to-natural gas project with an output of 5.5 billion cubic meters per year: the first phase of this project is already in operation, while the second phase is being advanced rapidly. The main product is natural gas, which is transported to East China via pipelines; sulfur and tar are also produced as by-products. Pingtouge believes that coal-to-natural gas remains an important type of chemical industry project in Xinjiang, and it also serves as an important supplement for China to ensure the scale of natural gas transportation from the west to the east; therefore, Xinjiang is likely to continue to expand the scale of such projects in the future. 19. Shandong Energy Yankuang’s 800,000 tons per year coal-to-olefins project in Xinjiang is a key project in the Zhundong Development Zone. It involves the production of olefins and downstream products, which are primarily used for manufacturing high-end plastics. Pingtouge believes that this project is a key initiative in Huaidong; it represents an important aspect of Xinjiang’s development in the field of coal-based olefins, and it also represents an important direction for the scaled-up development of the Huaidong Economic Development Zone. It holds great significance for Xinjiang as a whole. 20. Hengyi Energy’s 2.4 million tons per year coal-based ethylene glycol production project was announced in June 2025; it is a key project planned for Turpan, with an investment of over 25 billion yuan. The products produced will be high-quality ethylene glycol for use in fibers, and the project includes systems for the graded utilization of coal, thereby enabling the full production chain from coal to chemical fibers. Pingtouge believes that this project is likely to be one of the key development projects in Xinjiang over the next five years; it represents an important step in bringing chemical industry giants to the region, and it serves as the final stage in the transition from coal production to chemical fiber manufacturing there. It also sets a precedent for the advanced utilization of coal in China. 21. Tongkun Shares’ 5 million tons per year coal mine project in Shanshan – construction of this project began in June 2025, with production expected to start in 2027. The total investment in this project exceeds 6.1 billion yuan; the coal produced will be used in the technological upgrades related to the production of ethylene glycol, thereby reducing raw material costs. 22. Xinjiang Qiya New Materials’ 6 million tons per year coal-to-methanol project is currently under construction; it is part of a plan to produce 6 billion cubic meters per year of coal-to-natural gas, with commissioning scheduled around 2027. The methanol produced by this project is sold externally, enabling the development of olefins, acetic acid, and other fine chemicals locally. Pingtouge believes that the methanol produced by this project has high raw material characteristics; although it is sold as a commodity, it is mostly consumed locally in Xinjiang. 23. Xinjiang Zhongkun New Materials’ 600,000 tons per year natural gas-based ethylene glycol production project: the first phase of this project is already in operation, while the second phase, which involves the use of coal to produce ethylene glycol, is still in the planning stage. Pingtouge believes that the chemical industry projects in Xinjiang are centered on the clean utilization of coal, with an emphasis on developing industrial chains for coal-based oil and gas, olefins, BDO, etc.; at the same time, they take advantage of wind and solar resources to advance projects related to green hydrogen and new energy sources. The materials field focuses on high-end areas such as biodegradable plastics, high-performance alloys, and semiconductor materials. These projects not only facilitate the conversion of resources but also, through the integrated \"coal-electricity-chemicals-textiles\" model, help Xinjiang develop modern coal chemical industry clusters at a ** level as well as a core area within the Silk Road Economic Belt, thereby providing impetus for the high-quality development of Xinjiang’s chemical industry in the future. The above article is from Chemical Pingtouge