1. Dongying Headquarters, Shandong Province, China: 75.7 billion Yuan Demonstration Project of Comprehensive Utilization of Low Carbon Reconstruction of Aromatics
basic Overview and Capacity Planning of 1.1 Project
on July 14, Fuhai Group officially announced at the Shandong provincial government conference that the low-carbon reconstruction project of aromatic hydrocarbon raw materials with a total investment of 75.7 billion yuan would be accelerated in an all-round way. The project is a key petrochemical project in Shandong Province during the "15th Five-Year Plan" and a major petrochemical project to be promoted at the national level in China. It is also the single largest investment benchmark project in the 28-year petrochemical operation history of Fuhai Group. It completely reverses the extensive fuel export mode of traditional local refineries in Shandong, China, and anchors the high-end, integrated and low-carbon transformation path.
The project landed in Dongying, Shandong Province, with all core production capacity retained: 15 million tons/year crude oil processing capacity, 3 million tons/year PX, 2 million tons/year ethylene. After the completion of the rich sea directly into the first echelon of China's ten-million-ton private refining and chemical industry after reaching production, the annual revenue was 76.6 billion yuan, the profit and tax was 19.1 billion yuan, more than 3200 new jobs were created, and the regional industry pulling ability was outstanding.
1.2 Double Industry Chain Closed-loop Construction and Approval Progress
project to build two high value-added industrial chains to build barriers to competition: the original mature oil Refining-Aromatics-Polyesters chain, which has invested more than 250 billion yuan to complete the layout of PX, PTA and PET units in the early stage, is the first enterprise in Shandong to open up the integration of aromatics to polyester. This time, 2 million tons of ethylene production capacity will be added to make up for it. Oil Refining-Aromatics-Olefins the second industrial chain, complete the "oil reduction, increase, increase material" transformation, strengthen the ability of products to withstand fluctuations in the international commodity cycle.
At the procedural level, the project will be included in China's major petrochemical promotion list in February 2026. The principle of capacity reduction and replacement will be adopted to integrate Shandong's inefficient refining capacity. 39 sets of main units will be planned. Low-carbon processes such as slurry bed residue hydrogenation and continuous reforming will be applied to meet the requirements of refining and chemical carbon reduction under China's dual-carbon policy. Currently, the project is in the stage of preliminary approval and preparation for commencement.
2. Caofeidian Off-site Project in Hebei Province, China: 34.56 billion Yuan Methanol Naphtha Coupling to Olefin Project
2.1 Project Positioning and Basic Information
the project is the second largest olefin strategic layout around the Bohai Sea in Fuhai. It is operated by Fuhai Tangshan Petrochemical, a wholly-owned subsidiary. It is located in Caofeidian National Petrochemical Base in Tangshan, Hebei Province, with a total investment of 34.56 billion yuan. It is the chemical project with the largest single investment in Hebei Province in recent years. It will fill the gap of 1 million tons of ethylene in Hebei Province and help Caofeidian Base to complete the planning target of 4 million tons of ethylene production capacity in 2030.
2.2 innovative technology, high-end products and construction nodes
the plant is equipped with 1 million tons/year ethylene cracking plant and 17 sets of downstream deep processing units, using the Dalian Institute of Chemistry, Chinese Academy of Sciences. Dual route of methanol + naphtha coupling cracking + light hydrocarbon cracking compared with the traditional process energy consumption decreased by 20%, ethylene yield increased by 15%, methanol can flexibly replace naphtha feed, effectively hedge the risk of international crude oil surge and plunge, raw materials are extremely flexible.
Product end focus on the output of 100000 tons of POE, 50000 tons of alpha-olefin, EVOH, PTT and other high-end new materials, such products currently China's import dependence is as high as 70%-90%, after production will accelerate the high-end polyolefin domestic substitution, matching photovoltaic, automotive modification, high-end packaging materials global demand.
The timing of approval and construction is complete and clear: energy conservation review and EIA publicity will be completed in 2025; March 2026, 4243 mu of land consolidation project won the bid; It is planned to start actual construction by the end of 2026. Referring to the large-scale refining and chemical construction cycle, it is expected to start production in batches from 2029 to 2030 to release production capacity.
3. Bohai Rim Double Base Strategy has a profound impact on global chemical trade
3.1 production capacity pattern: 3 million tons of ethylene to build regional supply advantage
dongying 2 million tons of ethylene superimposed Caofeidian 1 million tons of ethylene, Fuhai long-term ethylene total production capacity of 3 million tons/year, with Dongying 15 million tons of oil refining, 3 million tons of PX supporting, forming shandong aromatic polyester + Hebei olefin new material the Bohai Rim collaborative industrial cluster reshapes the supply map of petrochemical raw materials in North China.
3.2 underlying layout logic and trade-side value
the industrial end avoids the homogenization of refined oil in Shandong and takes the two-wheel drive high-end route of aromatics and olefins. Relying on the advantages of Dongying Port and Caofeidian Port to reduce the logistics cost of crude oil import and products going to sea, Caofeidian methanol coupling route can link China's Shaanxi and Inner Mongolia coal-to-methanol resources to further reduce the cost of raw materials.
Core impact on overseas practitioners:
- PX, ethylene, PE, PP and other basic chemicals China Bohai Sea supply expansion, East Asia, Southeast Asia buyers can add low-cost northern supply channels;
- POE, alpha-olefins and other long-term dependence on overseas imports of scarce new materials to achieve China's local mass production, import monopoly pattern loosened, overseas downstream enterprises can dock domestic alternative brands;
- the landing of the two major projects marks a new stage of China's private refining and chemical integration competition, low-carbon compliance, integrated cost, high-end special material production capacity will become the long-term core competitiveness, can be used as an important reference for overseas enterprises to China procurement and cooperation.
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