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On April 15, 2025, the on-site demolition work for the transformation and upgrading project of Qilu Petrochemical’s Luyou and Luyan facilities officially began. Recently, this project entered its implementation phase, with some obsolete equipment being removed to clear the space necessary for construction to commence in the second half of the year. The image shows the site where the decommissioned equipment was removed on April 27.
On the 9th of the month, the results for the two basic design contracts related to the transformation and upgrading project of Qilu Petrochemical, a subsidiary of Sinopec, were announced: these contracts concern the basic engineering design for key facilities such as an ethylene plant with a capacity of 1 million tons per year and a hydrocracking plant with a capacity of 2 million tons per year, as part of the transformation and upgrading project. The scope of work for this contract includes the basic engineering design for eight main facilities, namely a new high-end carbon materials plant with a capacity of 2 million tons per year, a hydrocracking plant with the same capacity, a dry gas hydrogen production plant with a capacity of 80,000 standard cubic meters per hour, an ethylene plant with a capacity of 1 million tons per year, a facility for treating waste alkaline solutions, a hydroprocessing plant for pyrolysis gasoline with a capacity of 600,000 tons per year, as well as the control system for the central control room in the refining area (common components) and the control system for the central control room in the chemical processing area (common components). Related technical services are also included in this contract. For this bid section, Sinopec Engineering Construction Co., Ltd. (SEI) was designated as the winner. The engineering design for the core facilities of the Lu Oil Lu Refining transformation and upgrading project, including a 10-million-ton/year atmospheric and vacuum distillation unit, a 1.5-million-ton/year continuous reforming unit, etc. (Bid Section 1). The main scope of work for this bid section includes the engineering design for these three core facilities – the 10-million-ton/year atmospheric and vacuum distillation unit, the 1.5-million-ton/year continuous reforming unit, and the 1-million-ton/year coker gasoline hydrogenation unit – as well as related technical services. For this bid section, Sinopec Guangzhou Engineering Co., Ltd. (GPEC) was designated as the winner. This project is another achievement of Sinopec’s efforts to deepen practical cooperation with the Shandong Provincial Party Committee and government, as well as to promote industrial transformation and upgrading. This project mainly involves the construction of units for atmospheric and vacuum distillation with a capacity of 10 million tons per year, as well as ethylene production facilities 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. It is understood that the total investment in the construction of the Lu Oil and Lu Refining project amounts to 2,449,335 million yuan, with completion and operation scheduled for 2027. By then, Qilu Petrochemical will have a production capacity of 16 million tons per year for refining and 1 million tons per year for ethylene, becoming the first green and intelligent demonstration base in China that integrates refining, high-end materials, and hydrogen energy, and offering a \"Qilu solution\" for the high-quality development of China’s petrochemical industry.