Sinopec Completes Construction of China’s Largest Petrochemical Hub at Zhenhai

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Image Courtesy: Sinopec

China Petroleum & Chemical Corporation (Sinopec) has announced the mechanical completion of the second-phase expansion and advanced materials project at its Zhenhai Refinery. With this upgrade, the refinery’s capacity has been increased to 40 million tons per year, positioning the Zhejiang Ningbo Petrochemical Industrial Base as China’s largest and most advanced petrochemical hub, boasting a total refining capacity exceeding 50 million tons annually.

Located in the Yangtze River Delta, a critical region for downstream product consumption, this industrial base is a cornerstone of Sinopec’s value chain. The second-phase project, with an investment of CNY 41.6 billion, features 18 production units, including facilities for atmospheric distillation, catalytic cracking, polypropylene, and propane dehydrogenation. These units prioritize chemical production to support high-value supply chains.

The expanded refinery is designed to produce around 8 million tons of petrochemical products annually, bolstering supply for industries such as automotive, home appliances, and textiles. This is projected to generate trillions of yuan in industrial value across upstream and downstream sectors.

The project has achieved significant milestones in innovation and efficiency. Among the notable advancements is the development of 10 localized core technologies, including the world’s highest-load vertical labyrinth compressor, showcasing Sinopec’s commitment to technological leadership. Additionally, the project integrated smart technologies, enabling the seamless operation of both digital and physical factory systems, and implemented a fully domestically developed industrial operating system and internet platform to enhance decision-making and management processes.

Sustainability and safety were also central to the project’s success. Energy-saving measures resulted in a remarkable 11.7% reduction in overall energy consumption, setting a benchmark for eco-friendly operations. The project maintained an exceptional safety record, achieving over 90 million consecutive safe man-hours during construction. All production units passed quality checks with a 100% success rate, underscoring the project’s unwavering focus on high standards and operational excellence.

The Zhenhai Refinery, Sinopec’s largest integrated refining and chemical complex, also houses an ethylene production capacity of 2.2 million tons annually. It is the only facility in China consistently ranked in the top performance group of the Solomon Global Ethylene Performance Evaluation.

Sinopec, formally known as China Petroleum & Chemical Corporation, is one of the world’s largest integrated energy and chemical companies, headquartered in Beijing, China. Operating across the entire energy value chain, Sinopec engages in oil and gas exploration, production, refining, marketing, and distribution, as well as the manufacturing of petrochemicals and other industrial products.

Renowned for its significant role in the global energy sector, Sinopec is also actively pursuing initiatives in sustainable energy, including renewable energy projects and low-carbon technologies, to support China’s goals for carbon neutrality. With a robust presence in both domestic and international markets, Sinopec is a key driver of energy innovation and infrastructure development.