Total investment of approximately 21.369 billion yuan: An overview of the Jiude Green and Low-Carbon New Materials integrated project (Shandong Jiude Chemical)

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The 25th National \"Safety Production Month\" in 2026: Everyone talks about safety, and everyone knows how to handle emergencies; identifying and addressing potential risks and hazards. -------------------------------------------------- With a total investment of around 21.369 billion yuan, an overview of the Jiude Green and Low-Carbon New Materials Integration Project (Shandong Jiude Chemical). I. Basic information on the project 1. Constructor and location: The constructor is Shandong Jiude Chemical Co., Ltd., a wholly-owned subsidiary of Qicheng (Shandong) Petrochemical Group. Project location: It will be located in the Qicheng Petrochemical area of the Guangrao Chemical Industry Park in Dongying City, with a project for the comprehensive utilization of by-products being constructed simultaneously; both projects will be advanced as an integrated whole. Investment scale: The total investment for the main project is 16.747 billion yuan, with 1 billion yuan allocated to environmental protection measures. The project covers an area of 1,673 mu, and its building area is 45,770 square meters ； The investment in the project for the comprehensive utilization of by-products amounts to 4.622 billion yuan ； The total investment in these two projects amounts to 21.369 billion yuan, and they are considered key provincial-level projects in the field of chemical new materials. 2. Raw materials, processes, and core equipment
Raw materials and process route: Crude oil is not processed. Instead, low-quality heavy oil feedstocks such as refinery residue oil, asphalt components, and slurry oil are used as raw materials. The process follows a slurry-phase bed hydrogenation route for low-carbon conversion, thereby achieving “reducing oil output while increasing chemical production”. Core production units: 3.5 million tons/year slurry-bed hydrogenation unit, 2.6 million tons/year hydrocracking unit, 4 million tons/year aromatic compounds complex, 400,000 tons/year sulfuric acid plant. Full-chain auxiliary facilities: Supporting by-product projects include a 400,000 Nm³/h hydrogen production system, 200,000 tons/year sulfur recovery facility, large-scale acidic water/solvent regeneration systems, a 750 m³/h wastewater treatment plant, a 220 kV main substation, and large-scale tank storage and transportation systems. 3. Production capacity of main products: The core outputs include raw materials for high-end chemical new materials, such as 1.1387 million tons/year of benzene and 904,600 tons/year of mixed xylene. Additionally, there are pentane blowing agents, isopentane, transformer oil, high-boiling-point aromatic solvents, industrial sulfuric acid, liquefied gas, etc. Application areas: The products are widely used in industries such as plastics, coatings, cold chain insulation, electrical insulation, and fine chemicals. 4. Approval procedures and construction timeline
Compliance procedures: The filing with the Provincial Development and Reform Commission, the environmental impact assessment approval from the Provincial Department of Ecology and Environment (officially approved in January 2026), as well as the energy assessment, safety assessment, and all preliminary procedures related to land planning have all been completed ； Implementing carbon emission control and the substitution of pollutants aligns with the **low-carbon transformation policies for the petrochemical industry. Planned construction period: Full commencement is scheduled for the second quarter of 2026, with a total construction period of 12 months; completion and commissioning are planned for the second quarter of 2027. II. Tendering Updates (as of June 16, 2026) The tendering process for this project is carried out in phases and in multiple batches, covering all relevant fields such as design, civil engineering, equipment supply, installation, tank farm construction, power supply, and environmental protection. 1. Tendering for preliminary design (late 2025–early 2026): Conduct tenders for the overall engineering design, environmental impact assessment, safety assessment, design of safety facilities, general layout survey, and pile foundation survey; select a Class-A chemical engineering design institute to implement the integrated process plan. 2. Tendering for utility systems and supporting tank farms: Tendering for construction, steel structures, and storage tank equipment related to the supporting tank farm project has been completed ； All tenders for the procurement of auxiliary equipment such as 220kV substations, circulating water systems, sewage treatment facilities, hydrogen production units, and sulfur recovery systems have been opened, and the suppliers for the key equipment have been determined. 3. Tendering for large-scale equipment of the main plant: Key static and dynamic equipment such as slurry bed reactors, hydrogenation compressors, aromatic distillation towers, and large-scale heating furnaces are subject to separate tenders, covering high-end domestic petrochemical equipment ； Tenders for general civil construction and plant installation works were launched simultaneously; multiple large-scale petrochemical engineering contractors won the bids. 4. Upcoming tender sections: Bids for sections including plant area roads and pipelines, automation control systems, fire protection systems, warehousing facilities, and production operation and maintenance services will be opened collectively in the third quarter of 2026. III. Construction Progress 1. Preliminary preparation phase (January–April 2026): Site leveling, earthwork excavation, and geological surveys have all been completed ； Temporary water and electricity supplies, construction temporary structures, enclosures, and temporary storage facilities have been completed ； Simultaneously complete pile foundation tests and the preliminary construction of pre-buried underground utility pipelines. 2. Preliminary construction of supporting projects (May 2026 to present; current status) The construction of the tank farm associated with the by-product utilization project has entered the full-scale civil engineering phase. The foundations for storage tanks, pump houses, substations, and foam stations are being poured simultaneously with the main structures ； Foundation construction of the environmental protection facilities for hydrogen production and acidic water stripping is underway. 3. Construction pace of major units: Pile foundation construction is being carried out simultaneously in various unit areas within the main plant area; excavation of the foundation pits for the slurry bed hydrogenation and aromatic complex has been completed ； The pouring work for the foundations of large-scale equipment will be carried out in phases ； The civil construction of the main roads and pipe rack supports within the plant area is being carried out concurrently. 4. Construction management model: Parallel construction across multiple sections is adopted, with overlapping operations for civil works, equipment prefabrication, and installation. Supporting environmental protection facilities are constructed simultaneously with the main plant, ensuring compliance with emission standards right from the start of operation. IV. Significance of the Project 1. In terms of industrial transformation: This project implements Shandong Province’s strategy of \"reducing oil production and increasing chemical production, while improving quality and reducing carbon emissions\". It converts low-value residue oil from oil refining into high-value aromatic compounds and advanced solvent materials, thereby moving away from the traditional approach of producing only refined oils. It also helps to address the shortage of high-quality chemical raw materials in northern Shandong, and supports Dongying in developing a green chemical materials industry cluster worth 300 billion yuan. 2. Low-carbon resource recycling: Leveraging the slurry-bed hydrogenation clean process, along with a complete system for hydrogen production, sulfur recovery, and wastewater reuse, this approach enables the full utilization of heavy and low-quality oil resources ； It significantly reduces carbon emissions as well as solid and gaseous waste emissions associated with heavy oil processing. By enabling closed-loop recycling of by-products, it enhances the overall resource utilization rate, thus serving as a model for the low-carbon conversion of low-quality residue oil in China. 3. At the regional economy and supply chain level: Upon completion, it will become a supply base for aromatics raw materials with a capacity of millions of tons, thereby reducing China’s reliance on imports for raw materials used in plastics, foaming materials, and high-end insulating oils ； After going into operation, it has spurred the aggregation of related industrial chains in the fields of fine chemicals, equipment manufacturing, and logistics support, created numerous job opportunities in these industries, and contributed to an increase in industrial fixed-asset investment and tax revenues in the Guangrao area. 4. At the level of technical demonstration, the integrated application of coordinated hydrogen production, hydrogen refueling, and aromatic compound processing technologies helps to overcome the limitations associated with the conversion of traditional refining feedstocks. This approach meets the requirements for shifting to new forms of energy and achieving carbon neutrality goals, and it provides a replicable model for the green upgrading of existing facilities in domestic chemical parks as well as for the construction of new large-scale, low-carbon integrated refining projects.