The relocation of CNPC Dalian Petrochemical to Xizhongdao is expected to begin next year

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The relocation of CNPC Dalian Petrochemical to Xizhongdao is set to begin next year, with upgrades planned to accelerate the process of transforming it from a fuel refinery into a chemical refinery. On June 8, 2021, the (Dalian) Propane Dehydrogenation Industry Chain and Hydrogen Energy Comprehensive Utilization Forum was held in Dalian. At the meeting, the reporter learned that the relocation project of CNPC Dalian Petrochemical Company (hereinafter referred to as Dalian Petrochemical) is being advanced actively. The first phase of the project, which involves oil refining capacity of 10 million tons per year and ethylene production capacity of 1.2 million tons per year, is expected to have its approval process completed this year, with construction starting in the first half of next year, with the goal of completing the project and putting it into operation by 2024. It is understood that in 2014, the State Council issued a document calling for accelerated progress in relocating the refining and chemical processing projects of Dalian Petrochemical. Thanks to the years of efforts by both CNPC and the city of Dalian, all aspects of this project are now advancing at a rapid pace. According to Wu Junfeng, a member of the Party Working Committee and deputy director of the Management Committee of Dalian Changxing Island Economic and Technological Development Zone, the Dalian Petrochemical relocation project will be carried out in two phases at the Xizhongdao Petrochemical Industry Base (hereinafter referred to as the Petrochemical Base). In the first phase, projects for oil refining with a capacity of 10 million tons per year and ethylene production with a capacity of 1.2 million tons per year will be built; the approval for these projects is planned to be obtained this year, with construction starting next year. Subsequently, the second phase of the relocation project was launched; once all facilities are completed and put into operation, a refining capacity of 20 million tons and an ethylene production capacity of 2.4 million tons will be achieved in Nishinakajima. Taking this relocation as an opportunity, Dalian Petrochemical will also carry out the task of transforming from a fuel-based refinery into a chemical-based refinery. The olefin industry is the main focus of Dalian Petrochemical’s relocation efforts. In the future, relying on its 2.4 million tons of ethylene production capacity, Dalian Petrochemical will expand its operations into the carbon dioxide, carbon three, carbon four, and carbon nine sectors, thereby creating an industrial chain that is dominated by olefins with aromatics playing a supplementary role. Wu Junfeng said that Dalian Petrochemical makes full use of the leading role of central state-owned enterprises; once the project is completed, it will supply raw materials to the petrochemical base and promote the development of related industries. In the future, the petrochemical complex will leverage its advantages in terms of raw materials, policies, ports, and supporting infrastructure to attract high-quality enterprises to establish operations there, thereby moving forward toward more advanced processing stages and producing chemical products with high added value. Specifically, first, the petrochemical base will rely on the relevant raw materials provided by the Dalian Petrochemical relocation project to delve deeper into the petrochemical industry chain, attract leading enterprises with advanced technology and market capabilities to gather there, and develop a diversified industry chain within the petrochemical base, thereby creating an industrial cluster characterized by high-quality development. Secondly, through the development of the petrochemical industry, the petrochemical base will attract a number of high-level manufacturing enterprises to settle in the park, including those in the fields of petroleum equipment and new materials. At the same time, in line with the requirements for carbon peak and carbon neutrality, new energy equipment manufacturing enterprises are identified as one of the key areas for investment attraction. Third, by leveraging the rich asset resources of the petrochemical base, and combining the innovative technologies and concepts of the Dalian Institute of Chemical Physics under the Chinese Academy of Sciences and Dalian University of Technology, enterprises are attracted to work together on achieving breakthroughs in advanced petrochemical technologies and promoting their localization. Fourth, in achieving carbon peak and carbon neutrality, hydrogen energy produced as a by-product of petrochemical complexes is utilized to support the development of the hydrogen energy industry in Dalian ； Carbon dioxide is captured and comprehensively utilized to be converted into end products.