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Recently, Sinopec Qilu Company's "Lu Oil Lu Lu Refining" Transformation and Upgrading Technical Renovation Project's 1 million tons/year Ethylene Unit (including cracked gasoline hydrogenation and spent caustic treatment) EPC General Contracting Phase I officially commenced open bidding, with a total project investment exceeding 24.4 billion RMB. The project site is located in the Qilu Petrochemical Industrial Park in Linzi, Zibo, Shandong.
According to the bidding information, this renovation project plans to construct a new 10 million tons/year refining unit and a 1 million tons/year ethylene unit, implementing the core research strategy of "reducing oil and growing chemicals." The project will continue to optimize the refining and chemical product structure, moderately decrease the production capacity of refined oil items, and focus on growing the output of high-value-added chemical items such as ethylene, propylene, synthetic resins, and synthetic rubber. It will further extend the petrochemical new material sector chain downstream, promoting the enterprise's transformation from traditional oil refining to integrated refining and chemical high-end chemical production.
The scope of this tender covers the full-process general contracting work to design, procurement, and construction of the 1 million tons/year ethylene unit, cracked gasoline hydrogenation unit, and spent caustic treatment unit. The planned construction period to the project is 828 days, and the funding will be raised through 30% self-financing by the enterprise, with the remaining 70% solved via bank loans.
The "Lu Oil Lu Lu Refining" Transformation and Upgrading Technical Renovation Project is a key benchmark project to Sinopec's refining and chemical manufacturing structure adjustment. Upon full completion and operation, the project will significantly enhance the guarantee capability to olefin raw materials in the northern Shandong region, drive the coordinated research of upstream and downstream industries such as regional plastics, rubber, and fine chemicals. It will also have become a landmark project to domestic refining and chemical companies to advance the "reducing oil and growing chemicals" transformation and develop high-end petrochemical industries, playing a profound driving role in the high-condition research of the regional petrochemical sector.
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