All preliminary preparations for Lanzhou Petrochemical’s transformation and upgrading project involving the modification of its ethylene production facilities have been completed, with construction set to begin in the second half of 2026.

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As the \"Project No. 1\" of the Xigu Chemical Industry Park, the Lanzhou Petrochemical transformation project aimed at upgrading its ethylene production facilities has seen all preliminary preparations completed; construction is scheduled to begin in the second half of 2026. This project serves as the core driver for Lanzhou Xigu District to develop a petrochemical industry cluster worth hundreds of billions, and it is also an important support for Gansu Province’s strategy to strengthen its provincial capital. The million-ton ethylene project is ready to commence. With a total investment of around 23.17 billion yuan, this project is of the renovation and expansion type. It is located in the Xigu Chemical Industry Park in Lanzhou City, covering the Xigu Refinery area and the chemical plant area; it occupies approximately 170 hectares, with an additional 16 hectares required for the project, and the total construction period is expected to be around 40 months. Building on the existing 10.5 million tons per year of refining capacity, a new ethylene plant with a capacity of 1 million tons per year along with related downstream facilities will be constructed, while the old ethylene plant with a capacity of 240,000 tons per year will be shut down. This will result in an ethylene production system with two production units and one processing unit, bringing the total ethylene production capacity to 1.2 million tons per year. All the prerequisites for this project are now met: the feasibility study report has been approved by CNPC’s headquarters and is now in the process of being reviewed by the Development and Reform Commission. The project passed the joint evaluation process for high-priority projects in Gansu Province successfully in December 2025, and in March 2026, the environmental impact assessment documents entered the public disclosure phase. Supporting construction has also progressed concurrently; the No. 1 loading/unloading facility and its peripheral supporting projects were handed over on March 31, 2026, 30 days ahead of schedule. Reducing oil consumption and enhancing efficiency to drive high-end transformation: The project renovation plan covers three aspects – ethylene plant upgrades, refinery modifications, and improvements to downstream chemical manufacturing facilities. Regarding ethylene upgrading, a new 1 million tons per year ethylene cracking unit and downstream separation system will be built, along with facilities for cracking gas compression and propylene compression. The types of crude oil processed and the processing volume in the refining system remain unchanged; production of ethylene feedstock is increased through adaptive modifications to the facilities, while new PSA hydrogen production units and carbon dioxide recovery units are installed. Downstream supporting facilities are a key part of the \"reduce oil use and increase refinement\" strategy. The project will build 8 production units, with capacities of 20,000 tons per year for octene-1, 100,000 tons per year for POE, 140,000 tons per year for EVA, 450,000 tons per year for fully dense polyethylene, and 400,000 tons per year for polypropylene. Meanwhile, the existing 170,000 tons per year high-density polyethylene plant will be converted into a plant capable of producing 60,000 tons per year of ultra-high molecular weight polyethylene. Upon completion of the project, the total production capacity for polyolefins will reach 2 million tons, with over 1 million tons of new chemical materials being produced. The output of refined oil products will decrease significantly, with a reduction of around 1.39 million tons per year in gasoline and diesel production. The energy consumption per ton of ethylene will drop to 575.3 kgoe/t, which is lower than the **benchmark level of 590 kgoe/t. Industrial clusters worth hundreds of billions are taking shape at an accelerated pace. Xigu District is leveraging Lanzhou Petrochemical, as the key enterprise in this industry chain, to rapidly develop a petrochemical industry cluster of that scale. In 2024, the total industrial output value of the Xigu Chemical Industry Park reached 65.8 billion yuan, with corporate tax revenues amounting to 12.965 billion yuan; its overall competitiveness ranked it among the top 51 chemical industry parks in the country. By 2025, there will be 59 industrial projects under construction in the region, with industrial fixed-asset investment reaching 1.002 billion yuan, a growth rate of 48.1%. The total planned area of the industrial park is approximately 10.31 square kilometers. 430 million yuan has been invested to acquire and expropriate land covering about 300 mu, and efforts are being accelerated to develop another 2,300 mu of industrial land for the growth of industries such as rubber and plastic product derivatives, fine chemicals, and green chemicals. The park has developed 8 industrial chains, including those for synthetic resins, synthetic rubbers, and acrylics. Driven by both extending and supplementing industrial chains and technological innovation, Xigui District has established 12 special teams for attracting investment in various industries, developed maps for attracting investment along these industrial chains, and by 2025 aims to identify and prepare 29 industrial projects with a total investment of over 9.5 billion yuan. In 2026, the construction of projects such as a 400,000-ton/year polypropylene plant and a 450,000-ton/year fully dense polyethylene plant will be advanced simultaneously, while 20 high-value-added projects aimed at strengthening and complementing the industrial chain, including those related to POE and PAO, will also be planned and implemented. In terms of technological innovation, Xigu District has established high-level platforms such as the Lanzhou Petrochemical Science and Innovation Center, the Gansu Provincial Innovation Consortium for New Chemical Materials, and the Academician Gao Xiongrun Workstation. In 2024, seven major scientific research projects at or above the provincial level were carried out, with 25 key core technologies successfully mastered. Seven pilot projects are currently in the planning stage, with an expected increase in production capacity for new chemical materials of 60,000 tons and output value of 2.6 billion yuan. With the commencement of construction on the million-ton ethylene project in the second half of this year, Xigu District will accelerate its progress toward achieving its goal of developing a petrochemical industry cluster worth hundreds of billions of yuan. A modern industrial city with a more optimized industrial structure and stronger innovation capabilities is rapidly emerging along the banks of the Yellow River.