National Development & Reform Commission approved the petrochemical and refining complex in June 2020
China has reportedly commenced construction on $20bn petrochemical and refining complex in Shandong province.
The move follows approval from China’s state planner the National Development & Reform Commission (NDRC) in June 2020, allowing the start of planning for construction on the Yulong project.
The complex will receive investment with private aluminium smelter Shandong Nanshan Group being the lead investor, and other investors include chemical group Wanhua and the Shandong provincial government, Reuters earlier reported citing two China-based industry sources.
The project will comprise a 400,000-barrel-per-day oil refinery
Being built in China’s hub for independent oil refineries, the project will comprise a 400,000-barrel-per-day oil refinery and a 3-million-tonne-per-year ethylene plant.
However, further details of the Yulong project’s financing or when the construction would be completed were undisclosed, said the news agency, citing a report from local state media.
Earlier this year, Netherlands-based chemical company LyondellBasell signed definitive agreements to form a 50:50 joint venture (JV) with Liaoning Bora Enterprise Group (Bora).
As per the terms of the agreements, the companies will form a Sino-foreign JV which will be operated under the named Bora LyondellBasell Petrochemical.
The Bora LyondellBasell Petrochemical will operate a 1.1 million metric tonnes/year ethylene cracker and the associated polyolefin derivatives facility which is located in Panjin, China.
Last year, Saudi Aramco has agreed to create a joint venture (JV) with Chinese defense industry company NORINCO Group and Panjin Sincen to develop a $10bn fully integrated refining and petrochemical complex in China.
The Chinese petrochemical project will feature a 300 thousand barrel per day refinery, which will be equipped with a 1.5 million metric tons per annum (mmtpa) ethylene cracker and a 1.3 mmtpa PX unit.