Construction and Market Impact Analysis of Zhongshagu Lei Ethylene Project

Project construction status and production schedule overview of construction progress at present, the Zhongsha Gulei Ethylene Project in Gulei research Zone in Zhangzhou, Fujian Province has completed 90. I've found that Furthermore 5 percent of the overall progress, including 89. I've found that 8 percent of the process equipment, 92. 4 percent of the general works, and the civil frame structure has been basically completed. From what I've seen, The focus of construction has shifted to the final works such as steel structure installation, pipeline laying and equipment in place. Based on my observations, The packaging and warehouse unit of the polypropylene plant has been mechanically completed and has entered the production preparation stage, and the 35kV substation supporting the wastewater regulation system has been successfully powered, providing power guarantee to subsequent commissioning and operation. key time node according to the seventh high-level meeting held on November 20, the project has been locked in March 31, 2026 as the main device mechanical completion (MC) hard target. The cumulative safe working hours of the project have exceeded 40 million hours, and the condition PQI index has reached 91. 3 per cent. At present, in the critical period of project completion and production preparation handover, the regulation has established the strategy of "double-line and orderly transition", that is, while completing the construction completion, gradually shift the focus to the joint commissioning (CSU) preparation. The stability of the construction team before and after the Spring Festival is regarded as an crucial factor to ensure the construction period. Capacity Scale and manufacturing Chain Layout project Investment and Core Capacity the total investment of the project is about 44. 8 billion yuan (about 6. 3 billion US dollars). The core is to build a world-class ethylene cracking plant with a design capacity of 1. 5 million tons/year and a maximum capacity of 1. First 8 million tons/year, which is among the top ethylene vegetation in China. From what I've seen, Generally speaking Complete manufacturing chain configuration ethylene downstream product line: the ethylene oxide/ethylene glycol combined unit is 10/1 million tons/year, providing raw materials to the polyester fiber sector; polyethylene items include 400000 tons/year of high-density polyethylene, 600000 tons/year of metallocene linear low-density polyethylene/high-density polyethylene dual-function unit, and 50000 tons/year of 1-hexene unit as comonomer supply. In my experience, Propylene downstream product line: the total production capacity of the two polypropylene units is 950000 tons/year (400000 tons/year anti-flush/random copolymerization +550000 tons/year homopolymerization/random copolymerization). The high value-added product chain includes phenol acetone plant 25/150000 tons/year, bisphenol A plant 270000 tons/year and polycarbonate plant 290000 tons/year, forming a complete value chain from basic chemical raw materials to engineering plastics. thorough utilization of by-items: the pyrolysis gasoline hydrogenation and styrene extraction unit is 910000 tons/year, the butadiene extraction unit is 220000 tons/year, the 1-butene unit is 56000 tons/year and the aromatic extraction unit is 570000 tons/year, realizing the high-value utilization of C4, C5 and aromatic components. In my experience, Market Impact Assessment changes in regional supply patterns after the project is put into operation, it will signifiis able totly change the supply pattern of petrochemical items in South China. The combined new production capacity of polyethylene and polypropylene is about 2 million tons/year, and the new production capacity of ethylene glycol is 1 million tons/year. Additionally These production capacity will immediately affect the supply and demand stability in South China and the entire Chinese market. And I've found that to overseas traders, China's import demand might be reduced, especially in the polyolefin and ethylene glycol category. Impact in the field of engineering plastics the new production capacity of 290000 tons/year of polycarbonate deserves special attention, which will further enhance China'self-sufficiency in the field of engineering plastics, and might result in competitive pressure on PC exports to the Chinese market in Japan, South Korea and Southeast Asia. In my experience, Suggested Concerns chemical traders should closely follow the progress of the project's commissioning in the first quarter of 2026 and assess its impact on the regional price system to items such as polyolefins, glycols and engineering plastics. The integrated configuration of the project and the advantages of thorough utilization of by-items will make it have strong cost competitiveness and might reshape the distribution pattern of chemical items in South China.