Wedoany.com Report on Mar 11th, Recently, the Yanchang Petroleum Yan'an 10 million tons/year petrochemical integration transformation and upgrading project, with a total investment of 80.29 billion yuan, was officially submitted for approval in China, with plans to commence construction within 2026. The project is listed as the "Number One Project" in the energy and chemical sector of Shaanxi Province's 14th Five-Year Plan and is also one of the largest energy and chemical projects in northern Shaanxi in recent years in terms of investment scale.
According to the plan, the project is located in the Luochuan Industrial Park, Luochuan County, Yan'an City, Shaanxi Province, covering an area of approximately 683 hectares. The park has already passed provincial-level chemical park certification in 2022 and completed multiple rounds of on-site reviews, providing fundamental conditions for the implementation of large-scale energy and chemical projects.
The project construction includes a new 10 million tons/year atmospheric and vacuum distillation unit, a 1.2 million tons/year ethylene unit, and supporting production facilities. Among these, the completion of the 1.2 million tons/year ethylene unit will fill the gap in large-scale ethylene production capacity in northern Shaanxi, providing key raw material support for downstream polyolefins, new materials, and fine chemical products.
Simultaneously, the project will also integrate and upgrade existing refining and chemical units, focusing on relocating and replacing related production capacity from the Yongping Refinery, phasing out outdated equipment, and promoting the upgrading of the refining and chemical system towards greening and intelligence. Through this series of structural adjustments, Yanchang Petroleum's oil-to-chemical ratio is expected to be optimized from 9:1 to 5:5, with a significant increase in the proportion of chemical products.
Currently, relevant supporting work for the project is progressing simultaneously. The project land has been incorporated into the national spatial plan and has passed the urban development boundary adjustment review. In terms of energy support, plans include the construction of a 330kV dual-power substation integrated into the power grid plan, with water supply pipelines and park road construction also advancing in an orderly manner. Meanwhile, the project has released the first environmental impact assessment public notice, and the green and low-carbon concept will run through the entire project construction process.
From an industry trend perspective, with the development of new energy vehicles and the transformation of the energy structure, the profit margins for traditional fuel-type refineries are continuously narrowing. "Reducing oil production and increasing chemical production" has become an important development direction for China's refining and chemical enterprises.
Upon completion, the Yan'an petrochemical integration project will further improve the energy and chemical industry chain in northern Shaanxi. According to estimates, after the project becomes operational, it is expected to achieve an annual output value of 53.9 billion yuan and generate profits and taxes of 13.2 billion yuan. It will also drive the coordinated development of upstream and downstream industries, enhancing the scale and competitiveness of the regional energy and chemical industry.
As the approval and construction process advances, this refining and chemical project with a total investment exceeding 80 billion yuan is expected to become a new and important growth pole for the energy and chemical industry in northern Shaanxi.
