Yulong Petrochemical downstream project EIA publicity landing: 56 sets of devices, six raw material routes, hundreds of billions of domestic substitution wave speed up.

March 3 the Ministry of Ecological Environment issued the proposed review and publicity of the environmental impact assessment documents for the reclamation project of the petrochemical downstream and extended industrial chain project of Shandong Yulong Petrochemical Co., Ltd., a key step in the promotion of project compliance. The project is located in the area of No. 5 Island, Yulong Island, on the west side of Longkou City, Yantai City, Shandong Province, the proposed land reclamation area is about 639.2843 hectares. For the construction of refining and chemical integration (phase I) downstream deep processing equipment and supporting facilities. It should be noted that the scope of this EIA is limited to the reclamation project itself, and the EIA for onshore installations will be carried out independently. The item has been included in list of Major Projects in Shandong Province in 2026, total investment 117.857 billion yuan the strategic positioning is to build a 100 billion-level new material industry cluster based on the advantages of refining and chemical integrated raw materials.

1. project structure: 56 sets of devices through six raw material routes, raw material self-sufficiency to maximize profits.

The project relies on Yulong Island Refining and Chemical Integration (Phase I) to produce basic chemical raw materials-ethylene, propylene, butadiene, xylene, benzene, toluene, ethylene oxide, styrene, ethylene glycol, PX, etc. 56 sets of production units and supporting public works, from basic raw materials to high-end new materials to open the complete industrial chain channel. It is the core logic of the industrial chain design of the project to compress the procurement cost and focus on the downstream high value-added links.

The key products of the six raw material routes are as follows:

ethylene Route the product line is the most abundant, covering vinyl acetate, VAE emulsion, VAE powder, PVA resin, PVB resin, EAA resin, high carbon alpha olefins (300000 tons/year) and POE materials (400000 tons/year). As the core material of photovoltaic film and new energy vehicle elastomer, POE is highly dependent on imports for a long time, and this large-scale localization layout will have a substantial impact on the existing import supply pattern, which is the most far-reaching product direction of this project.

Benzene route the scale is equally prominent: nylon 66 (400000 tons/year) Nylon 6 (300000 tons/year), total 700000 tons/year nylon production capacity in the forefront of the domestic, put into production will profoundly affect the domestic nylon market supply and demand pattern, the price center down pressure can not be ignored.

Propylene route covering carbon fiber precursor, butyl octanol, acrylate, trihydroxypropane, neopentyl glycol and SAP (super absorbent resin), across high-performance fibers, coating solvents, polymer absorption materials and other downstream directions, product diversity is strong.

Styrene Route production of ASA resin and MBS resin, mainly used in automobiles, building materials, home appliances and other areas of high weather resistance requirements.

C4 route production of NBS, THF and PBS, **polyisobutylene (20000 tons/year)** new materials, mainly used in lubricating oil additives and sealing materials.

2. industry impact research: multi-category synchronous domestic substitution, supply chain pattern facing restructuring

the core impact of Yulong Petrochemical's downstream project lies in its systematic and large-scale domestic substitution capacity. POE elastomers, carbon fiber raw silk, high-carbon alpha olefins and other products previously import dependence is very high, a single project in multiple market segments simultaneously release such a volume of production capacity, in the history of domestic chemical industry is relatively rare, will be in POE, nylon, acrylic and other categories of simultaneous formation of supply impact.

Core advice for overseas traders and supply chain practitioners: the project is planned to be incorporated into a major promotion node in 2026. It is suggested to focus on tracking the production schedule of devices with high import dependence such as POE, nylon 66 and acrylate, evaluate the existing supply structure and customer contract arrangement as early as possible, lay out the coping strategies, and avoid the double risks of price and channel brought about by the switching of supply pattern.