On August 11, the Luochuan County government website in Shaanxi Province released the second public notice for the environmental impact report of the Yan'an 10 million tonnes/year refining and chemical integration transformation and upgrade project by Yanchang Petroleum. At present, the refining company under Shaanxi Yanchang Petroleum (Group) Co., Ltd. has a total crude oil primary processing capacity of 17.4 million tonnes/year, operating six atmospheric units. Due to historical factors, these facilities are distributed across three locations: Luochuan, Yanchuan, and Jingbian, with drawbacks such as early construction, long operation times, numerous units, small scale, outdated equipment, and high energy consumption, leading to a significant gap compared to integrated domestic petrochemical enterprises.
There is an urgent need to implement measures such as closing smaller units to build larger ones, reducing oil output while increasing chemicals, saving energy and reducing carbon, and upgrading and renovating to achieve industrial and product structure adjustments and transformations. The announcement states that the Yan'an 10 million tonnes/year crude oil refining and 1 million tonnes/year ethylene refining-chemical integration project is located in the Yangshu Chemical New Zone of the Luochuan Industrial Park. It is based on the Yan'an Refinery and Yan'an Petrochemical Plant, leveraging refining-chemical integration. While meeting regional oil product market demand, it focuses on developing high-end new materials and fine chemicals, nurturing and leading the development of local industries such as engineering plastics, rubber, pharmaceuticals, dyes, transportation, and electronics.
The project has a total investment of approximately 52.1 billion yuan. Construction includes shutting down five small atmospheric units, which together have a primary crude oil processing capacity of 12.4 million tonnes, and building a new 10 million tonnes/year atmospheric-vacuum distillation unit, a new 1 million tonnes/year ethylene unit, along with related refining and chemical units. The refining process units include a new 10 million tonnes/year atmospheric-vacuum distillation unit, a 2.4 million tonnes/year catalytic cracking unit, a 3.4 million tonnes/year hydrocracking unit, an 80,000 Nm³/h hydrogen production unit, a dry gas and LPG desulfurization and sweetening unit, a solvent regeneration unit, a (0.6+0.6) million tonnes/year sulfur recovery unit, an acidic water stripping unit, a 1.7 million tonnes/year light hydrocarbon recovery unit, and a 700,000 tonnes/year aviation kerosene hydrotreating unit. Modifications will be made to the 1.2 million tonnes/year continuous reforming unit and the 1 million tonnes/year catalytic gasoline S-Zorb unit, totaling 12 units. Among these, new units will all be located in the Yangshu Chemical New Zone.
The chemical process units include a 1 million tonnes/year ethylene unit, a 450,000 tonnes/year full-density polyethylene (FDPE) unit, a 300,000 tonnes/year low-density polyethylene (LDPE/EVA) unit, a 50,000 tonnes/year alpha-olefins unit, a 200,000 tonnes/year styrene monomer (SM) unit, a 300,000 tonnes/year polypropylene (m-PP) unit, a 160,000/220,000 tonnes/year acrylic acid and esters (AA/AE) unit, a 150,000 tonnes/year butadiene extraction unit, a 100,000/40,000 tonnes/year MTBE/butene-1 unit, a 700,000 tonnes/year pyrolysis gasoline hydrogenation unit, a 500,000 tonnes/year aromatics extraction unit, a 50,000 tonnes/year ultra-high molecular weight polyethylene (UHMWPE) unit, a 200,000 tonnes/year POE unit, a 120,000 tonnes/year solution-polymerized styrene-butadiene rubber (SSBR) unit, and a 100,000 tonnes/year 4-methyl-1-pentene unit, totaling 15 units. All chemical units will be located in the Yangshu Chemical New Zone.
The announcement states that the project's implementation optimizes resource allocation and product structure for the three enterprises: Yongping Refinery, Yan'an Refinery, and Yan'an Petrochemical Plant, improving resource utilization rates. Simultaneously, it will shut down small-scale, energy-intensive process units, reducing production costs and enhancing the overall profitability of the enterprise. The project holds significant importance for driving the transformation and green development of the petrochemical industry in the Yan'an region and advancing Shaanxi Province's development strategy.
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