With a total investment of more than 220.8 billion yuan, a panoramic scan of 16 key chemical projects in Guangdong, China: three major ethylene clusters reshape the pattern of South China

Guangdong, China is becoming one of the most active investment highlands in the global petrochemical landscape. From Daya Bay in Huizhou to Donghai Island in Zhanjiang, from Nanhai in Jieyang to Sanshui in Foshan, 16 key chemical projects have a total investment of more than 220.8 billion yuan, covering four major tracks of petrochemical integration, new chemical materials, fine chemicals and green fuels. The petrochemical industry pattern in South China is undergoing deep reshaping.

Three major ethylene clusters: concentrated release from 2026 to 2027, capacity in South China will double

the most impactful main line of this round of investment is the concentration of the three ethylene integration projects.

China National Marine Shell Huizhou Phase III (with a total investment of about 52.1 billion yuan) is located in Daya Bay, Huizhou. It will be fully launched in January 2025. As of January 2026, the cumulative completion progress is 42.49. It is expected that the machinery will be completed in the second quarter of 2027. The main products include 1.6 million tons/year ethylene, 600000 tons/year mLLDPE, 500000 tons/year PP, 645000 tons/year EO/EG, 400000 tons/year LAO, 50000 tons/year PAO and other 18 units, with a total ethylene production capacity of 3.8 million tons/year after completion. The synchronous layout of LAO and PAO is an important breakthrough in the domestic substitution of high-end polyolefin raw materials.

BASF (Guangdong) integrated base (with a total investment of about 68 billion yuan and about 8.7 billion euros) is located in Donghai Island of Zhanjiang. It has been fully completed and put into operation on March 26, 2026. The 1 million-ton/year ethylene combined plant will be put into operation as scheduled in January 2026. It has built 18 units and 32 production lines, which can produce more than 70 kinds of products. It is currently one of the largest wholly-owned chemical integrated bases in the world.

Maoming Petrochemical Refining Transformation and Upgrading of Ethylene (with a total investment of about 30 billion yuan) has reached 63% in June 2026, and is expected to be fully delivered by the end of 2026. After the renovation, the ethylene production capacity will be expanded from 1 million tons/year to 1.64 million tons/year, the refined oil output will be reduced by 1.85 million tons/year, the ethylene raw material will be increased by 1.67 million tons/year, and the downstream will be equipped with 300000 tons/year propylene oxide, 240000 tons/year hydrogen peroxide and 100000 tons/year POE units.

In addition, ExxonMobil Huizhou Phase I (1.6 million tons/year ethylene, 2.65 million tons/year PE and PP) has reached full production, and the resin monomer blending project will start in the first quarter of 2026 and strive to be put into production in the third quarter of 2027. PetroChina Guangdong Petrochemical (with a total investment of over 70 billion yuan) has been fully put into operation in 2023, with 20 million tons/year refining, 2.6 million tons/year aromatics and 1.2 million tons/year ethylene, the cumulative processing of crude oil exceeds 50 million tons.

High-end new materials and green track: domestic substitution and low-carbon transformation two-line promotion.

In the field of new chemical materials, CNOOC Shell Huizhou Polycarbonate Project (with a total investment of about 9.3 billion yuan) will build 260000 tons/year PC, 240000 tons/year BPA and 220000 tons/year DPC. Shell's world first industrial application proprietary technology will be adopted and the machinery will be completed in December 2026, which will have a significant impact on China's domestic PC import substitution process. The hydrodechlorination unit of the Guangdong Dongyue Waste Plastic Recycling Project (with a total investment of about 1.2 billion yuan) 200000 tons/year mixed waste plastic chemical recycling project passed the EIA in January 2026. After the completion of the second phase, it can produce 667000 tons/year green ethylene and 1.339 million tons/year green propylene. Guangdong Isco Carbon Four Carbon Five High-end New Materials (with a total investment of 7.342 billion yuan) rely on Guangdong Petrochemical by-product resources to extend the chain to high-end materials and are currently under construction.

In terms of green fuel, China Gas Foshan Green Methanol Base (with a total investment of 5 billion yuan) uses bagasse and wood processing waste from South China as raw materials, with an annual output of 200000 tons of green methanol. The first phase is expected to be put into production in 2028. It is a rare large-scale project of biomass-based green methanol in China.

comprehensive judgment: From 2026 to 2027, the three ethylene clusters in Guangdong will be released centrally, and the supply pattern of ethylene and polyolefin in South China and the whole country will face a deep reconstruction. For traders, the regional rebalancing of supply and demand for PE, PP, EG and other products around 2027 is the core proposition that is most worth studying in advance.