The extended petroleum project with a capacity of 10 million tons in refining and chemical processing has been submitted to the State Council

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Yan’an Petroleum’s 10 million tons per year refining and chemical processing project submitted to the State Council 2026-02-26 14:19:42 The Yan’an Petroleum project, which involves a refining and chemical processing capacity of 10 million tons per year and has a total investment of 80.29 billion yuan, has completed all preliminary preparations and has now been formally submitted to the State Council for approval. This marks a decisive step forward in the implementation of Shaanxi Province’s key projects during the 14th Five-Year Plan period, and it will provide impetus for the structural transformation of the petrochemical industry in the northwest region. Centered on the principle of \"reducing oil use and enhancing value,\" this project addresses the challenges in the petrochemical industry, such as an excess of refined oils and a shortage of chemical raw materials, and promotes a shift in the industry from a \"fuel-oriented\" approach to a \"material-oriented\" one. The project will construct two core units: one for atmospheric and vacuum distillation with a capacity of 10 million tons per year, and another for ethylene production with a capacity of 1.2 million tons per year. At the same time, the crude oil processing capacity of 12.4 million tons per year in areas such as Yan’an and Yulin will be shut down, thereby enabling an integrated upgrade of production capacity. The key advantage is the optimization of the existing ratio of refined oil to chemical products from around 9:1 to 5:5, which reduces the output of refined oil products while increasing the production of basic chemical raw materials such as ethylene, thereby meeting the demands of the market for high-end chemical materials. In line with the \"dual carbon\" goals, the project includes the construction of a CCUS demonstration facility capable of capturing over 500,000 tons of carbon dioxide per year. The new ethylene production units utilize advanced technologies, which enable a reduction in energy consumption by more than 15%. The project uses crude oil produced by Yanchang Petroleum as raw material to produce high-end products such as EVA and electronic-grade hydrofluoric acid, meeting the needs of the new energy and electronics industries while providing supply chain support for leading enterprises such as BYD. The project completed its environmental impact assessment public consultation in 2024, passed the review by the **National Development and Reform Commission in conjunction with several other ministries in May 2025, and has now been submitted to the State Council for final approval. Official documents from January 2026 indicate that the project is still in the preliminary stage, with efforts focused on coordinating raw material supply and policy support. The project has received approvals at the provincial and municipal levels regarding the reduction of total pollutant emissions, as well as from the Ministry of Natural Resources regarding land use, and it complies with the **\"reduction and replacement\" policy. The government and private sectors work together to advance infrastructure construction; the 1 million cubic meter crude oil storage facility has already completed its intermediate handover procedures, ensuring a stable supply of raw materials. Upon completion, the project is expected to generate annual revenues of 65.6 billion yuan and tax revenues of 14.5 billion yuan. It will help develop a petrochemical industry cluster worth hundreds of billions of yuan, create employment opportunities in the Yan’an revolutionary area, and contribute to ecological protection in the Yellow River basin as well as to the development of the western region. This project serves as the key pillar for Yanchang Petroleum (with a 120-year history) to transform into a company focused on chemicals and materials, aligning with its strategy for green and digital transformation and strengthening its position as a leader in the petrochemical industry in the western region.