【2026 Daily Overview】Sinopec won the oil and gas exploration rights for an area of 579.97 square kilometers in Ruicheng, Shanxi, at a price of 132 million yuan – a 30-fold premium – thereby securing a strategic position in Shanxi; the three major oil companies have fully established their strategic presence there

📋 Project overview: On May 15, 2026, after a 32-hour intense bidding battle, Sinopec successfully won the rights to explore for oil and gas in the Ruicheng area of Shanxi for 132 million yuan, a price that was more than 30 times higher than the initial bid of 4.06 million yuan. The block spans Ruicheng County and Yongji City, with a total area of 579.97 square kilometers.

📈 Latest update: This auction marks the complete establishment of the three major oil companies’ strategic presence in Shanxi. CNOOC acquired the Wuyuan block in the Qinsui Basin for 1.005 billion yuan in September 2025, while CNPC obtained the Guxian block for 559 million yuan in January 2026.

Key measures taken by Sinopec to strengthen its control over upstream resources. As a key region for coalbed methane resources in China, Shanxi has predicted reserves of 8.31 trillion cubic meters at depths of up to 2,000 meters. The involvement of the three major oil companies will accelerate the development of unconventional oil and gas resources, thereby ensuring **energy security.

Demand for coalbed methane exploration and development services (seismic exploration, drilling engineering) is increasing； There is strong demand for the purchase of fracturing equipment and gas production equipment ； There is significant market potential in pipeline network construction and related services.

Other projects: 2️⃣ Dalian Petrochemical Xizhongdao Integrated Refining and Chemical Processing Project with Direct Connection to Green Electricity (tender has been launched). 💰 Total investment amount: 4 billion yuan (for direct connection to green electricity). 📍 Region/province: Northeast China (Dalian, Liaoning)

📋 Project Overview: On May 18, an open tender was issued for the preparation of the feasibility study report for the direct green power connection project. The project is of the grid-connected type; it involves the construction of wind power plants, photovoltaic power plants, energy storage facilities, transmission lines, and related supporting infrastructure. The site for these facilities will be located within a radius of 30 kilometers from the integrated refining and chemical processing project, with the green electricity being directly connected to the plant’s 220/66 kV main substation. The total investment in the core supporting projects is 68.5 billion yuan, involving the construction of a refinery with an annual capacity of 10 million tons, an ethylene plant with an annual capacity of 1.2 million tons, as well as downstream facilities.

📈 Latest update: This project is the first large-scale case of relocating and rebuilding a petrochemical enterprise in China, with construction scheduled to begin in 2026.

Direct connection to green electricity will significantly reduce the carbon emission intensity of refining and petrochemical projects, in line with the development strategy of \"differentiation, high-end development, and uniqueness.\" This approach will help Dalian build an international-standard green petrochemical industry base, as well as China’s first green, low-carbon, and efficient new type of refining and petrochemical facility.

Demand for wind power generation equipment, photovoltaic modules, and energy storage systems is increasing； EPC general contracting opportunities for power transmission and transformation projects ； There is great potential for cooperation with green power operation service providers ； The demand for supporting chemical processing equipment (PP, FDPE, LDPE, POE, CHPPO units) is clear.

3️⃣ Datang Chongqing Wulong Yinpan Pumped Storage Power Station (system connection approved) 💰 Total investment: 7.296 billion yuan 📍 Region/province: Southwest (Chongqing Wulong) ⏳ Construction period: 1,766 days planned (approximately 4.8 years) 📋 Project overview: On May 18, the official approval for the system connection design was granted by State Grid Chongqing Electric Power Company, marking the formal implementation of the transmission plan. The power plant has a total installed capacity of 1.2 million kilowatts, and it is connected to the Zhangjiaba 500kV substation at a voltage level of 500kV. Once completed, it will be able to operate at full capacity for 12 consecutive hours, generating 1.477 billion kWh of electricity per year; it is the only long-duration weekly regulation pumped storage power station in Chongqing. 🏆 Latest progress update: The main construction is about to begin, with every effort being made to ensure it starts on a high standard.