As one of the regions with the most vigorous investment in China's chemical industry, Xinjiang has become increasingly prominent in the field of coal chemical industry and new energy. The region is not only rich in fossil resources, but also has superior location advantages. At the moment when the European chemical industry continues to decline, Xinjiang petrochemical products are expected to become an important supplementary force in the European market.

What are the recent large-scale chemical projects in Xinjiang? How is the project progressing?

1. Dushanzi Petrochemical Tarim 1.2 million Tons/Year Phase II Ethylene Project

project Overview: with a total investment of more than 21.8 billion yuan, 90% of the model review has been completed by April 2025 and is expected to be completed and put into operation in 2027.

Production scale: annual output of 1.2 million tons of ethylene, 450000 tons of full-density polyethylene, 300000 tons of low-density polyethylene (including EVA capacity), supporting cis-polybutadiene rubber, aromatics extraction device.

Strategic significance: the project is an important key project of PetroChina's strategic development in Xinjiang, and it is of great significance and role for PetroChina's northwest territory expansion and internal "oil conversion" strategy.

2, Sinopec Tahe refining "refining integration" project.

Project Overview: the total investment is close to 30 billion yuan, and the EIA approval was obtained in June 2025. At present, the project has started construction and is expected to be put into operation in 2026-2027.

Production scale: the refining capacity of Tahe Refining and Chemical Company will be expanded from 5 million tons/year to 8.5 million tons/year, and 800000 tons/year ethylene and 800000 tons/year aromatics units will be built to produce high-end polyolefin, PX and other products.

Strategic significance: this is an important measure of "oil conversion" of Tahe Refinery, which plays an important role in the long-term sustainable development of the enterprise in the future. After the project is put into operation, Tahe Refining and Chemical will enter the real "refining and chemical integration" category.

3, Ukraine petrochemical aromatics industry chain project.

Project Overview: with a total investment of 6.492 billion yuan, it will be started in March 2025 and is planned to be put into production in the third quarter of 2027.

Production scale: including aromatics plant capacity expansion and transformation, the new 2 million tons/year PTA plant, through the "refining-chemical-spinning" whole industrial chain.

Strategic significance: as a typical oil refining enterprise, the landing of this project is of great significance to the development of chemical fiber textile industry, which can effectively supplement the shortage of local chemical fiber raw material supply in Xinjiang.

1. State Energy Group Hami 4 million Tons/Year Coal-to-Oil Project

project Overview: with a total investment of 170 billion yuan and construction started in March 2024, it is the first second-generation direct liquefaction technology application project in Xinjiang.

Production scale: annual output of 3.2 million tons of direct liquefied oil products, 80-1 million tons of indirect liquefied oil products, the second phase of co-production of PX, PGA high-end chemicals.

Strategic significance: the second generation coal-to-liquid is an important strategic demonstration project in China, which is of great significance to solve the shortage of local oil supply in Xinjiang, increase the utilization of coal and improve the production technology of coal-to-liquid in China.

2, Xinjiang Shaneng Chemical 800000 tons/year coal olefin project.

Project Overview: the total investment exceeds 20 billion yuan and was approved in February 2025. The first phase is currently under civil construction.

Production scale: using pulverized coal pressurized gasification + green hydrogen coupling technology, with an annual output of 800000 tons of olefins, the main production of polyethylene, polypropylene, supporting air separation, sulfur recovery and other devices.

Strategic significance: this project is an important local coal-to-olefin project in Xinjiang, and it is also an important coal-to-olefin project in my country in recent years. It plays an important role in increasing the utilization of local coal in Xinjiang, developing high-end new material products, and supplementing the insufficient supply of local polyolefins in Xinjiang.

3. Hengyi Energy 2.4 million Tons/Year Coal to Ethylene Glycol Project

project Overview: the total investment exceeds 25 billion yuan and is announced in June 2025. It is a key project in Turpan's planning.

Production scale: annual output of 2.4 million tons of high quality fiber with ethylene glycol, supporting coal classification utilization, from coal to chemical fiber production.

Strategic significance: this project is one of the key development projects in Xinjiang in the next five years. It is an important representative of the introduction of chemical giants in Xinjiang. It is also the end project of local development from coal to chemical fiber. It has played a leading role in demonstrating the high-end utilization of coal in my country.

4, Xinjiang Qinghua Energy 5.5 billion square/year coal to natural gas project.

Project Overview: the first phase has been put into production and the second phase is advancing rapidly.

Production scale: with an annual output of 5.5 billion cubic meters of natural gas, it is sent to East China through pipelines, producing sulfur and tar as by-products.

Strategic significance: coal-to-natural gas has always been an important type of local chemical project in Xinjiang, and it is also an important supplement for my country to ensure the scale of natural gas transmission from west to east. Xinjiang may continue to increase the scale of this project in the future.

5, Shandong Energy Yankuang Xinjiang 800000 tons/year coal olefin project.

Project Overview: it belongs to the key project of Zhundong Development Zone.

Production scale: with an annual output of 800000 tons of coal to olefins and downstream products, it is mainly used to produce high-end plastics.

Strategic significance: this project is a key project in Zhundong, an important representative of the development of coal-to-olefins in Xinjiang, and an important direction for the large-scale development of Zhundong Economic Development Zone.

6. Xinjiang Jiaguo Weiye 6 million Tons/Year Low Rank Coal Comprehensive Utilization Project

project Overview: with a total investment of 7.037 billion yuan, the EIA was approved in November 2023 and will be constructed in two phases.

Production scale: the first phase produces 1.8 million tons of blue carbon, 80000 tons of LNG and coal tar hydrogenation products, and the second phase produces 180000 tons of methanol and 350000 tons of acetic acid.

Strategic significance: the project is one of the few coal coking projects in recent years, which plays an important role in ensuring the development of traditional coal chemical industry and the supply of LNG and blue carbon in Xinjiang.

7. Xinjiang Guanghui New Energy 15 million Tons/Year Coal Quality Utilization Project

project Overview: the project has been put into production, supporting the CCUS project.

Production scale: annual output of 7.14 million tons of coal, coal tar 1.5 million tons, LNG 777600 tons, by-product hydrogen, liquid carbon dioxide.

Strategic significance: this project is an important project for the development of Guanghui Energy in Xinjiang. It is of great significance to the sustainable development of Guanghui Energy. It is also an important strategic project of Guanghui Energy's 14th Five-Year Plan.

8. Xinjiang Qiya New Material 6 million Tons/Year Coal to Methanol Project

project Overview: it is a project under construction, with a 6 billion-square-year coal-to-natural gas plan, and is initially planned to be put into operation around 2027.

Production scale: annual output of 6 million tons of methanol, methanol sold in the local development of olefins, acetic acid and other fine chemicals.

Strategic significance: the methanol produced by the project has high raw material properties. Although it is sold as a commodity, it is basically sold locally in Xinjiang.

1. Xinjiang Xinye Energy and Chemical Industry 200000 Tons/Year BDO Phase II Project

project Overview: with a total investment of 1.8 billion yuan, it will be delivered in July 2024 and put into production at the end of 2024.

Production scale: annual output of 200000 tons of BDO and downstream spandex, PTBEG, biodegradable plastics and other products.

Strategic significance: the project is an important representative of the downstream BDO industry chain of Xinjiang local calcium carbide, which can be extended to spandex, degradable plastics and other industries, and plays an important role in the development of Xinjiang local degradable plastics.

2. Xinjiang Zhongtai Jinhui Science and Technology 300000 Tons/Year BDO Project

project Overview: with a total investment of 5.1 billion yuan, the construction progress will reach 80% in June 2025, and it is expected to be delivered by the end of 2025.

Production scale: supporting calcium carbide acetylene, formaldehyde plant, annual output of BDO and downstream PTMEG, PBAT, the total capacity will reach 600000 tons.

Strategic significance: xinjiang is rich in calcium carbide resources. This project makes full use of this advantage to develop degradable plastics and other industries, which is of great significance to the local development of Xinjiang.

3, Ganquanbao Economic Development Zone foam aluminum new material project.

Project Overview: with a total investment of 2.5 billion yuan, the contract will be signed in November 2024 and the construction will start in April 2025.

Production scale: annual production of high-performance aluminum foam materials, used in new energy vehicles, aerospace, construction fields.

Strategic significance: the supply of new materials in Xinjiang is seriously insufficient, relying on the allocation of resources outside the region, the project can alleviate the supply gap of local foam aluminum materials in Xinjiang.

4. Guoleng Xinjiang Chemical Industry 300000 Tons/Year PGA Polyglycolic Acid Project

project Overview: it is a proposed project with a total investment of more than 9.8 billion yuan.

Production scale: annual output of 300000 tons of PGA project and co-production of 50000 tons of ethylene glycol project.

Strategic significance: this project is a large-scale PGA project in China, which is of great significance to the growth of PGA supply scale in China. Landing the project in Xinjiang, there is a test of the scale of market elimination.

5. Xinjiang Lanshan Tunhe 1.2 million Tons/Year PTA Project

project Overview: for the proposed project, supporting 1.1 million tons/year coal methanol.

Production scale: annual output of 1.2 million tons of PTA and downstream textile products.

Strategic significance: the project is an integrated project of coal-to-chemical fiber industry chain, which is of great significance to the promotion of local chemical supply in Xinjiang. However, the project also faces the test of coal-to-aromatics technology and the scale of consumption in the downstream chemical fiber market.

6, Xinjiang Zhonghe United 1 million tons/year acetic acid and downstream projects.

Project Overview:2025 is in the commissioning phase.

Production scale: annual output of 1 million tons of acetic acid, vinyl acetate, polyvinyl alcohol, etc., the downstream is mainly used for coatings, adhesives.

Strategic significance: the project is a large-scale acetic acid and downstream project, the industrial chain is long and the refinement rate is high, but the product market supply and demand environment intensified, Xinjiang local consumption scale there is a test.

7, Xinjiang Zhongkun new materials 600000 tons/year natural gas to ethylene glycol project.

Project Overview: the first phase is put into operation, and the second phase of coal-to-ethylene glycol is in the proposed state.

Production scale: annual output of 600000 tons of ethylene glycol.

Strategic significance: it provides important support for the development of ethylene glycol industry in Xinjiang.

8, Tongkun shares Shanshan 5 million tons/year coal mine project.

Project Overview: with a total investment of more than 6.1 billion yuan, construction will start in June 2025 and is expected to start production in 2027.

Production scale: with an annual output of 5 million tons of coal, it is mainly used for technological transformation of coal to ethylene glycol.

Strategic significance: reduce raw material costs and provide raw material protection for the downstream chemical industry.

xinjiang chemical industry project takes clean utilization of coal as the core, focuses on the development of coal to oil and gas, olefins, BDO and other industrial chains, while relying on scenery resources to promote green hydrogen coupling and new energy projects. The field of materials focuses on high-end directions such as degradable plastics, high-performance alloys, and semiconductor materials.

These projects not only promote the transformation of resources, but also help Xinjiang to build a national modern coal chemical industry cluster and the core area of the Silk Road Economic Belt through the integrated mode of "coal, electricity, chemical and spinning", providing a strong driving force for the high-quality development of Xinjiang's chemical industry in the future.

From the perspective of the overall investment scale, the total investment of 23 major projects exceeds 400 billion yuan, covering a complete industrial chain from basic chemical raw materials to high-end new materials, reflecting the systematic and forward-looking development of Xinjiang's chemical industry.