China National Offshore Oil Corporation (CNOOC) has completed the construction of an integrated refining and petrochemical complex in Ningbo, East China’s Zhejiang Province.
Utilizing China’s self-developed technology for direct cracking heavy oil, the project efficiently converts heavy oil into polypropylene and other chemical products, which is set to enhance China’s self-sufficiency in high-end chemical materials.
Built as an expansion of existing facilities at Daxie Island of Ningbo, the project adds 18 new units and supporting facilities, including crude distillation, jet fuel hydrotreating, vacuum gas oil hydrotreating, catalytic cracking, and polypropylene production. Thanks to the expansion, the Daxie project can now process 12 million tons of crude annually. Its 3.2-million-ton-per-year catalytic cracking unit alone can produce 1.2 million tons of polymer-grade propylene and ethylene. Combined with existing capacity, total olefin capacity has reached 1.8 million tons a year, making it the country’s largest heavy oil direct conversion base for olefins.
The new process enhances feedstock flexibility, raises olefin yield and lowers energy use. It is particularly suited to processing heavy offshore crude, bypassing naphtha as an intermediate feedstock and directly producing polymer-grade ethylene and propylene. This innovation simplifies the production process while boosting chemical output efficiency.
Energy use per ton of product is cut by more than 30 percent compared with traditional processes, reducing carbon dioxide emissions by about 200,000 tons annually. The project also features waste heat recovery and rooftop solar power systems, saving over one million tons of steam a year and lowering production costs by more than 300 million yuan ($41.93 million).
CNOOC said the project will turbocharge its shift from traditional fuel production to high-value chemical materials. The polyolefin products will be used in industries including autos, food packaging, and textiles, providing support for high-quality economic development and meeting the demand of people’s livelihood.
(Executive editor: Yuan Ting)
