By 2025, Shandong Province is advancing three large-scale petrochemical projects with a total investment of over 100 billion yuan
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On December 19, 2024, the groundbreaking ceremony for the transformation and upgrading technical renovation project of Luyou Luyan at Qilu Petrochemical was held in Zibo, Shandong. This project primarily involves the construction of units for atmospheric and vacuum distillation with a capacity of 10 million tons per year, as well as an ethylene production facility with a capacity of 1 million tons per year, in addition to utility systems and auxiliary facilities. Once completed, it will further optimize the company’s product portfolio and raw material supply, promote the coordinated development of related industries, inject strong momentum into local economic development, and help advance China’s petrochemical industry toward higher standards of sophistication, intelligence, and sustainability. The construction site is located in the Qilu Chemical Industry Zone of Linzi District, Zibo City. It primarily utilizes Shengli crude oil and other resources to develop an integrated refining and chemical processing facility with a capacity of 15 million tons per year for oil refining and 1 million tons per year for ethylene production. The construction scope includes the main plant facilities, storage and transportation systems, as well as various auxiliary systems. The main projects include the construction of facilities for producing 10 million tons per year of vacuum distillation products, 2.1 million tons per year of high-end carbon materials, 2 million tons per year of hydrocracked products, 1.5 million tons per year of continuously reformed products, 1 million tons per year of hydrogenated naphtha from coking, 80,000 standard cubic meters per hour of hydrogen production from dry gas, 80,000 tons per year of sulfur recovery, 1 million tons per year of ethylene, as well as facilities for treating waste alkali solutions, 600,000 tons per year of hydrogenated pyrolysis gasoline, 1.3 million tons per year of aromatic extraction products, 180,000 tons per year of aromatic adsorption separation products, 150,000 tons per year of butadiene extraction products, and 200,000 tons per year of ion-exchange membrane caustic soda ； Construction of a new 200,000 tons/year hydrogen-based dewaxing and coker liquefied gas desulfurization and denaturation unit in a different location ； Renovate the 234,000 tons/year vinyl chloride and 400,000 tons/year third aromatic extraction units. The main products of the project include National VI gasoline and diesel, aviation kerosene, high-end carbon materials, ethylene, propylene, benzene, toluene, mixed xylene, vinyl chloride, caustic soda, butadiene, etc. The total investment for the project is 24.493 billion yuan, of which 3.421 billion yuan is allocated to environmental protection measures, accounting for 14% of the total investment.
On May 13, 2024, the environmental impact assessment for Shandong Dongming Petrochemical Group Co., Ltd.’s 15 million tons per year integrated refining and chemical processing project was made public. Project progress: Initial planning stage. Project type: New construction. Project investment: 1,000,000,000 yuan. Project location: Dongming Petrochemical Industrial Park, Dongming County, Heze City, Shandong Province ； Project Overview: The project is located within the Dongming Petrochemical Industrial Park. It focuses on the production of high-end petrochemical products, while also producing clean fuels with a oil-to-chemical ratio of 3:7. This project includes the construction of an UPC combined unit and a steam cracking unit for ethylene production, thereby providing scalable and competitive raw materials for the manufacture of advanced chemical materials and specialty chemicals downstream. It also involves the establishment of chemical production facilities for EVA/LDPE, PO/SM, ABS, FDPE, m-LLDPE, olefins, UHMWPE, m-PP, phenol/**, and EPOE, in order to produce high-value chemical products. On the morning of March 19, 2024, a press conference was held to introduce Shandong Dongming Petrochemical Group’s crude oil catalytic cracking for olefin production (UPC) technology, as well as the Luchang 2.0 high-efficiency fuel. Breakthroughs have been achieved in Dongming Petrochemical’s crude oil catalytic cracking for olefin production (UPC) technology, and industrial-scale tests have been successfully conducted. UPC technology refers to the process of directly cracking crude oil to produce chemicals such as ethylene and propylene. By eliminating the refining step and shortening the processing sequence, it enables a significant reduction in crude oil and energy consumption. It boasts advantages such as a short process flow, high efficiency, low emissions, and high yields of chemicals, and it is of great significance for effectively addressing China’s high dependence on imported crude oil and the surplus of refined oil products.
Regarding the Dongjiakou refining and chemical project, in February 2022, the Qingdao municipal government reached a framework agreement with Sinopec Group to relocate Qingdao Petrochemical to the Dongjiakou petrochemical area and develop it into an industrial park for green and low-carbon new materials. Work is currently in progress, and once completed, the relocation of Qingdao Petrochemical will take place. The Qingdao Green and Low-Carbon New Materials Industrial Park (Dongjiakou Park) covers an area of 29.22 square kilometers, making it the largest specialized industrial park for emerging industries in Qingdao. The park focuses on two key industries: chemical new materials and advanced metal materials. By leveraging the advantages of Dongjiakou Port and the provincial-level chemical industrial park, it aims to establish a leading domestic base for green and low-carbon new material industries. On November 2, 2023, the Marine Bureau of the West Coast New Area disclosed details regarding the 120,000-ton oil terminal project in the Dongjiakou port area: By leveraging the advantages of its large storage tanks, large terminals, and long-distance pipelines, this port area is gradually taking on the functions that were previously handled by the Huangdao port area. The Dongwei pipeline serves local refineries, while the Dongdong pipeline serves Sinopec’s Qilu and Jinan Refining & Chemical plants; it also helps to build capacity for Sinopec’s planned integrated refining project at Dongjiakou. The company is actively developing new business areas such as bonded crude oil trading and ship fuel supply. In November 2024, the Management Committee of the Dongjiakou Economic Zone announced that planning would begin for the major projects in Dongjiakou and the surrounding areas. Affected by factors such as the approval and implementation of the urban development boundaries for the new district, as well as adjustments to the functional layout outlined in the \"Qingdao Port Master Plan (2035)\” and the \"Qingdao West Coast New Area Territorial Spatial Zoning Plan (2021–2035)\”, the original planned functional roles, land use arrangements, road traffic systems, and municipal infrastructure in the area north of Zixin Road to Henghe can no longer meet the needs of current construction projects and the future development of the port-city industry. To support the feasibility studies for site selection of current projects, planning work for the spatial layout of the Dongjiakou major project and its surrounding areas, along with specialized studies on transportation and municipal services, will be initiated. The scope of this plan extends north to Henghe, south to Zixin Road, east to the planned Ziliangshan Road, and west to the port area connection road, covering a total area of approximately 14.82 square kilometers (including about 10 square kilometers for projects planned for construction in the near future).