19.856 billion yuan! China Huhua Petrochemical 1 million Tons Ethane Light Hydrocarbon to Ethylene Project Enters Stability Evaluation Publicity, Plans to Start Construction in 2027

By SKYSEVEN Chemical Technical Team · 2026-08-06

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On August 4, PetroChina Hohhot Petrochemical 1 million Tons/Year Ethane Light Hydrocarbon to Ethylene Project released a public announcement of social stability risk assessment.

Basic Information and Device Planning of 1. Project

on August 4, PetroChina Hohhot Petrochemical 1 million Tons/Year Ethane Light Hydrocarbon to Ethylene Project released a public announcement of social stability risk assessment. The project is located in Sulige Economic Development Zone, Wushen Banner, Ordos, Inner Mongolia, with a total investment of 19.856 billion yuan. The construction period is from June 2027 to June 2029, and the construction period is 24 months.
The project was optimized from the early 1.2 million tons/year ethylene program to 1 million tons/year scale, supporting the complete downstream polyolefin industry chain: newly built 1 million tons/year ethylene unit (PSA hydrogen purification), 300000 tons/year HDPE, two sets of 400000 tons/year FDPE, 250000 tons/year PP, 50000 tons/year butadiene extraction, 100000 tons/year pyrolysis gasoline hydrogenation, 200000 tons/year by-product consumption and co-production unit, and planning special railway lines, storage and a full set of public works.
The latest promotion node: stable assessment publicity landing simultaneously, energy-saving assessment bid section completed candidate publicity; EIA, water and water conservation, climate demonstration and other early-stage technical services simultaneous bidding, the project officially entered the key stage of landing.

2. Route Advantage and Regional Industrial Value

the project relies on the local ethane and light hydrocarbon resources of Sulige gas field, and adopts the short process cracking route of natural gas light hydrocarbon, which has significant advantages in raw material localization. Compared with traditional naphtha cracking, the ethane route has higher ethylene yield, lower comprehensive energy consumption and lower carbon emission level, which is in line with the direction of low-carbon development and belongs to the landmark project of natural gas in-situ conversion in western China.
After the completion of the project will form a large-scale polyolefin industrial cluster, large-scale production of HDPE, FDPE, PP, butadiene, to complement China's north and northwest polyolefin production capacity short board. Synchronous supporting railway special line, open the northwest bulk plastic export channel, products sustainable radiation North China, northwest market, optimize the domestic olefin regional supply pattern.

3. global supply chain and trade-side concerns

  1. china's ethane cracking capacity continues to expand
    Following the coastal import ethane route, western China relies on local gas field resources to develop the ethane-to-ethylene route to form a new growth point. The completion and commissioning of the project will continue to increase the domestic supply of polyethylene and polypropylene, ease the dependence on domestic polyolefin procurement in the medium and long term, and change the regional supply structure of olefins in Asia.
  2. Product structure and trade flow prediction
    The device is mainly in the general polyolefin category, relying on the advantages of inland resources with stable cost competitiveness. After the railway supporting facilities are perfected, the supply of goods not only covers the domestic northern market, but also has the potential to radiate the Mongolian and Central Asian markets, which is worthy of overseas traders to continue to track the long-term export window.
  3. Focused Trace Node
    Continue to pay attention to the project EIA, can evaluate the progress of approval, 2027 start landing, focus on 2029 after the production of load climbing rhythm, brand scheme and export pricing strategy. At the same time, we are concerned about the changes in polyolefin supply and demand brought about by the concentration of similar ethane cracking projects in China.
Overall, the project is an important layout of PetroChina's layout of low-carbon olefin production capacity in the west, which will reshape the polyolefin supply pattern in northern China, and overseas supply chain practitioners can track the progress of the project for a long time and assess supply substitution opportunities in advance.

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