Latest updates on Qingyang Tongxin’s 500,000 tons/year light hydrocarbon deep processing project

Project Name: Qingyang Tongxin 500,000-ton/year Light Hydrocarbons Deep Processing Project
Developer: Qingyang Tongxin Petroleum Technology Co., Ltd.
Project Type: New construction
Location: Xifeng Industrial Park, Qingyang City
Area: The project covers an area of approximately 696 mu.
Project Overview: The main construction activities include building a 500,000-ton/year liquefied gas desulfurization unit, a 600,000-ton/year liquefied gas separation unit, a 150,000-ton/year maleic anhydride production unit, a 20,000-ton/year succinic anhydride production unit, a 120,000-ton/year BDO production unit, a 30,000-ton/year PBS production unit, and a 300,000-ton/year alkane dehydrogenation unit (including 120,000 tons/year of MTBE). In addition, supporting storage and transportation facilities, utility systems, safety and environmental protection facilities, as well as auxiliary facilities will be constructed. The main products include propylene, maleic anhydride, succinic anhydride, BDO, PBS, MTBE, etc.

On February 26, 2025, the EPC general contracting project for the alkane dehydrogenation and related facilities of Qingyang Tongxin’s 500,000 tons per year light hydrocarbon deep processing project officially commenced construction in Qingyang. On January 8-9, 2025, the 90% scale model review meeting for the 150,000 tons per year succinic anhydride unit of Qingyang Tongxin’s 500,000 tons per year light hydrocarbon deep processing project was held at Bohua Engineering. On December 6, 2024, the groundbreaking ceremony for the EPC general contracting project of the 1,4-butanediol production unit in the 500,000 tons per year light hydrocarbon deep processing project at Qingyang Tongxin, which is carried out by China Five Rings Engineering Co., Ltd. under China National Chemical Corporation, was held at the Xifeng Industrial Park in Qingyang City. On November 22, 2024, a grand commissioning ceremony was held for the alkane dehydrogenation unit and related facilities of Qingyang Tongxin’s 500,000 tons per year light hydrocarbon deep processing project. On November 14, 2024, a grand groundbreaking ceremony was held at the project site for the EPC project of the 150,000-ton-per-year maleic anhydride plant as part of the 500,000-ton-per-year light hydrocarbon deep processing project in Qingyang Tongxin, a project undertaken by Bohua Engineering. From March 19 to 20, 2024, the review meeting for the process design package of the \"150,000 tons per year succinic anhydride unit\" for Qingyang Tongxin Petroleum Technology Co., Ltd.’s 500,000 tons per year light hydrocarbon deep processing project, which was undertaken by Bohua Engineering, was successfully held in Tianjin. On March 13, 2024, the kick-off meeting for the succinic anhydride reactor of Qingyang Tongxin’s 150,000-ton/year succinic anhydride production facility, which was contracted by Bohua Engineering, was held in Shanghai.

Energy endowments give rise to new industries. As China’s second-largest sedimentary basin, the Ordos Basin has the highest proven reserves of natural gas, coalbed methane, and coal in the country. As an important area of the basin, Qingyang is known as the \"new capital of energy and chemicals.\" It is the main production area for the Changqing Oil Field, with oil reserves of 7.88 billion tons and proven geological reserves of 3.21 billion tons. The total natural gas reserves amount to 2 trillion cubic meters, with proven reserves of 42.3 billion cubic meters. The associated gas produced by the oil field (including light hydrocarbons such as ethane and propane) is in large quantities, providing a substantial supply of raw materials for these light hydrocarbons. The region is rich in shale gas resources, along with coal, oil, and gas resources, making it suitable for the development of a comprehensive chemical industry chain that makes use of multiple energy sources complementing each other. For a long time, Changqing Oilfield has remained inactive in the field of utilizing resources associated with oil and gas; light hydrocarbon resources were merely exported as raw materials with low added value. In September 2023, the Qingyang Municipal Government and Changqing Oilfield jointly established Qingyang Tongxin Petroleum Technology Co., Ltd., with a registered capital of 1 billion yuan, in order to work together to transform light hydrocarbon resources from a \"fuel-based\" use to a \"chemical-based\" one. In the same month, the groundbreaking ceremony for Qingyang Tongxin’s 500,000 tons per year light hydrocarbon deep processing project was held grandly in Xifeng Industrial Park, marking a significant breakthrough in the joint development of energy resources by the local government and enterprises. “The Tongxin Project is a milestone achieved through cooperation between local enterprises, and it also serves as an important foundation for the development of the Longdong Comprehensive Energy and Chemical Industry Base. ”The person in charge of Qingyang Tongxin Petroleum Technology Co., Ltd. said that the company will fully cooperate with Qingyang City, using the light hydrocarbon deep processing project as a foundation to promote the development of downstream industrial chains and product diversification, thereby helping to establish the region as a new hub for chemical manufacturing in the West characterized by complementary energy sources.

Green chemistry drives technological breakthroughs. The Qingyang Tongxin project, born out of the strategy for green transformation, uses liquefied gas and mixed hydrocarbons from the Changqing Oil Field and the petrochemical enterprises in the surrounding area of Qingyang as raw materials. It primarily produces products such as propylene, BDO, furan, MTBE, γ-butyrolactone, C5+ components, and PBS. Once operational, the project is expected to generate an annual output value of 4 billion yuan. Covering a total area of 763.51 mu, the factory complex showcases the manufacturing potential of modern green chemistry, from liquefied gas desulfurization units to BDO production lines as well as China’s first PBS production line. By deeply processing inefficient liquefied gas and mixed hydrocarbon resources, raw materials that originally cost several thousand yuan per ton are transformed into high-value chemical products worth tens of thousands of yuan. This kind of miraculous transformation not only mitigates the market risks associated with the misallocation of light hydrocarbon resources, but also opens up new avenues for enhancing the value of associated oil and gas resources. At the project construction site, the foundation work for the BDO unit area has already made significant progress. This production line with an annual capacity of 120,000 tons of 1,4-butanediol will become a new hub for biodegradable plastic raw materials in the northwest region. The technical team innovatively adopted an alkane mixed dehydrogenation process to fully utilize the C3 and C4 components in liquefied gas, raising the overall resource utilization rate to 98%. The project is equipped with a 20,000-cubic-meter hydrogen production facility, which achieves the recycling of hydrogen resources through the combination of methanol-based hydrogen production and PSA purification technology. “Through this project, Qingyang Tongxin is reshaping the new pattern of regional development. By centrally managing the storage and transportation of hazardous chemicals, a full-process traceability system is established to create a model for intelligent supervision of hazardous chemicals in the northwest region ； Using products such as propylene and BDO as links, it will integrate projects such as the 400,000-ton polypropylene plant planned in Xifeng Industrial Park, in order to develop a chemical new materials cluster worth tens of billions ； Products such as PBS-degradable plastics and environmentally friendly foaming agents are well-aligned with the ‘dual carbon’ strategy, and their annual emission reduction potential is equivalent to that of planting tens of thousands of hectares of forests. ”The company’s leader stated that once the project is operational, it will play a key role in promoting the development of downstream industries such as pharmaceuticals, electronics, and automobiles, helping Qingyang transition from being a hub for energy output to one for product output. The person in charge of the construction site said that throughout the project’s development, environmental protection principles were upheld at every stage. The waste gas incineration system, for which 120 million yuan was invested, ensures that VOC emissions remain well below the **standard levels ； Wastewater treatment employs a combined process of biological treatment and membrane separation, achieving a reuse rate of 90% ； Even the C5+ components are converted into environmentally friendly blowing agents to replace traditional Freon products. This full-life-cycle green management reduces the overall energy consumption per ton of product by 15% compared to industry benchmarks, thereby achieving a green transformation of \"black resources\".

This reactor excels in terms of energy savings and carbon reduction: a single unit with an annual production capacity of 50,000 tons can save 0.625–0.75 megawatts of energy per hour, resulting in annual energy savings of 5,000–6,000 megawatt-hours, which is equivalent to a reduction of 4,000–5,000 tons of carbon emissions per year. Its high-performance design not only significantly reduces carbon emissions and pollutant discharge, but also promotes the development of a circular economy through the extension of the industrial chain. As a key raw material for biodegradable plastics such as PBS, the production of maleic anhydride directly contributes to addressing the global issue of plastic pollution. This device, together with products such as BDO and succinic acid produced in conjunction downstream, forms a green circular industrial chain of \"maleic anhydride-degradable plastics,\" facilitating the transformation of maleic anhydride from a traditional chemical product into a green material and contributing to the achievement of the \"dual carbon\" goals. The main components of the Qingyang Tongxin 500,000 tons/year light hydrocarbon deep processing project include the construction of a 500,000 tons/year liquefied gas desulfurization unit, a 600,000 tons/year liquefied gas separation unit, a 150,000 tons/year maleic anhydride unit, a 20,000 tons/year succinic anhydride unit, a 120,000 tons/year BDO unit, a 30,000 tons/year PBS unit, and a 300,000 tons/year alkane dehydrogenation unit (including 120,000 tons/year MTBE). In addition, new storage and transportation facilities, utility systems, safety and environmental protection facilities, as well as auxiliary facilities will be built. The main products include propylene, maleic anhydride, succinic anhydride, BDO, PBS, MTBE, etc.