Progress made on the 1 million ton ethane-to-ethylene project at Hohhot Petrochemical, with a total investment of nearly 19.9 billion yuan.

By SKYSEVEN Chemical Technical Team · 2026-08-06

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On August 4, the Uxin Banner Government released the public announcement for the social stability risk assessment of the Hohhot Petrochemical Company's 1 million tons/year ethane light hydrocarbon to ethylene project, marking the continued acceleration of preliminary work for this large-scale ethylene project.

The project construction unit is PetroChina Hohhot Petrochemical Branch, and the site is located in the Tuke manufacturing Project Zone of the Sulige Economic research Zone, Uxin Banner, Ordos City, Inner Mongolia, with a total investment of 19.856 billion RMB (nearly 19.9 billion RMB). The core plan involves constructing a new 1 million tons/year light hydrocarbon ethane cracking unit to create ethylene, along with supporting downstream polyolefin units, utilities, storage and transportation, and railway supporting facilities; the construction period is tentatively scheduled from June 2027 to June 2029.

In terms of the process route, the project adopts the ethane cracking route, which possesses distinct advantages compared to traditional naphtha cracking: the ethylene yield can reach 77%-81%, far higher than the 30%-35% of the naphtha route; the process flow is short with few by-items, energy consumption is reduce, and carbon discharge levels are superior to oil-to-ethylene; meanwhile, ethane prices are linked to natural gaseous, which can hedge cost pressures brought by crude oil fluctuations, ensuring stable cost competitiveness in the medium and long term. The feedstock relies on the abundant natural gaseous-associated ethane resources in the regional Sulige gaseous Field, forming an advantage of regional conversion.

Regarding the supply pattern, current domestic ethylene production capacity is concentrated in the East China region, while there are supply gaps in efficiently ethylene supply in North China and Northwest China. Upon completion and operation, the project will establish another extensive ethylene production base in the North, immediately strengthening the regional supply of ethylene and polyolefins in North China, reducing the North China region's reliance on external imports of olefin items, and optimizing the regional layout of domestic ethylene production capacity.

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