Investment of 24.5 billion yuan for a refinery with a capacity of 10 million tons per year and an ethylene production capacity of 00 million tons – the technological transformation project for the upgrading of Qilu Petrochemical’s Luyou and Luyan facilities has begun

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On the morning of December 19, the transformation and upgrading technical renovation project for Lu Oil and Lu Refining at Sinopec Qilu Petrochemical was launched in Zibo City. 　　The Lu Oil and Lu Refining project involves the construction of a vacuum distillation unit with an annual capacity of 10 million tons, an ethylene plant with an annual capacity of 1 million tons, as well as related downstream facilities. It plays a significant role in promoting the transformation and upgrading of Shandong’s petrochemical industry and helping to strengthen China’s petrochemical sector. 　　According to the environmental impact assessment report published by the Shandong Provincial Department of Ecology and Environment in November, the total investment for the Lu You Lu Lian project is approximately 24.49 billion yuan. This investment covers both the refining and chemical processing components, with a construction period of 2 years and 7 months. The project will be built within the existing facility of the Qilu Branch in the Qilu Chemical Industry Zone, Linzi District, Zibo City, Shandong Province. 　　The refining section includes a vacuum distillation unit with a capacity of 10 million tons per year, a high-end carbon materials production unit with a capacity of 2.1 million tons per year, a hydrocracking unit with a capacity of 2 million tons per year, a continuous reforming unit with a capacity of 1.5 million tons per year, a dry gas hydrogen production unit with an output of 80,000 Nm³ per hour, a sulfur recovery unit with a capacity of 80,000 tons per year, and a coker gasoline hydrogenation unit with a capacity of 1 million tons per year. In addition, there are new constructions or renovations of related storage and transportation facilities, utility systems, and auxiliary equipment. 　　The chemical processing section includes a 1 million-ton ethylene cracking unit, along with downstream facilities such as an 200,000-ton/year ethylene oxide plant, a 600,000-ton/year cracked gasoline hydrogenation plant, a 1.3 million-ton/year aromatic extraction plant, a 150,000-ton/butadiene extraction plant, a technical upgrade project to restore the production capacity of 200,000 tons of ion-exchange membrane caustic soda, a waste caustic solution treatment plant, and an 180,000-ton/year aromatic adsorption and separation plant. Additionally, there are systems for storage and transportation, as well as utility and auxiliary facilities that require upgrades. 　　According to available information, the Qilu Branch of Sinopec Corporation is located in Zibo City, Shandong Province. Established in 1966, it has developed over more than five decades into a large-scale integrated enterprise engaged in oil refining, chemicals, and chemical fibers production. By the end of 2022, the Qilu Branch had a comprehensive refining capacity of 10 million tons per year, an ethylene production capacity of 800,000 tons per year, a synthetic resin production capacity of 1.3 million tons per year, a caustic soda production capacity of 450,000 tons per year, a rubber production capacity of 300,000 tons per year, a benzene series production capacity of 500,000 tons per year, a butyl octanol production capacity of 325,800 tons per year, an acrylonitrile production capacity of 260,000 tons per year, and a acrylic fiber production capacity of 54,000 tons per year. Its thermal power generation capacity was 504,000 kilowatts.