Guangxi Petrochemical Breakthrough: China's RMB 30 Billion Refining-Integration Project Goes Online

An integrated refining and petrochemical transformation project undertaken by PetroChina Guangxi Petrochemical has achieved a successful initial start-up at Qinzhou Port in Guangxi. The event was marked by the simultaneous dispatch of the first batch of chemical products.

This milestone signifies the completion of the largest million-tonne ethylene project in Southwest China. It also marks the formal transition of Guangxi Petrochemical's operations from a primary refining focus to an integrated refining and petrochemical phase.

The development is described as a significant practice within China's petrochemical sector, representing a strategic shift from 'scale dependency' towards a 'quality breakthrough'.

The project represents a total investment exceeding RMB 30 billion. It incorporates several key technological achievements, including the world's largest diesel adsorption separation unit. This unit employs ‘molecular engineering' principles, reportedly enhancing feedstock utilisation efficiency by over 15% compared to conventional processes. This addresses a structural imbalance within China's petrochemical industry characterised by 'excess oil but insufficient chemical production'.

Furthermore, the project establishes China National Petroleum Corporation's (CNPC) first proprietary 80,000-tonne/year SBS and 120,000-tonne/year functionalised solution-polymerised styrene-butadiene rubber units. A key feature is the world's first ethylene refrigeration compressor utilising the largest dual-frequency converter disturbance-free switching motor. The project thus concentrates a series of 'world's first' and 'China's first' technological accomplishments.

As CNPC's inaugural benchmark project for transitioning from refining to integrated operations, the development comprises 14 chemical units centred on a 1.2 million tonnes/year ethylene plant, two refining units, and supporting infrastructure.

Upon full commissioning, the project is expected to annually reduce oil product consumption by 3.49 million tonnes while simultaneously increasing chemical output by 3.06 million tonnes. It will produce high-end polyolefins, functionalised rubber, premium membrane materials, and pipe materials aimed at addressing domestic supply gaps.

Concurrently, the project ensures that 100% of its additional power consumption is met by green electricity. Its energy consumption metrics for both refining and ethylene units are reported to exceed national benchmark standards, establishing a circular chain linking 'resources-products-green applications' to support China's dual carbon goals.

Following two years of construction, the project achieved multiple industry breakthroughs. The implementation team adhered to a specific management philosophy, adopting a modular ‘one site + multiple factories' approach. This enabled the precise hoisting of a 1,760-tonne propylene tower and established the project as China's first large-scale petrochemical initiative to utilise modular construction for pipe galleries.

Progressing from its commencement in July 2023, the project saw the high-standard handover of the ethylene unit in July 2025. This was followed by the successful initial start-up of the world's largest 2 million tonne/year diesel adsorption separation unit in August, creating a replicable 'Guangxi model' for industrial transformation.

From a national perspective, the project is expected to propel Guangxi's transition from basic chemicals to a high-end chemical new materials industrial structure. Leveraging the Western Land-Sea New Channel, its products can reach markets across Southwest China, South China, and ASEAN, supporting the development of a trillion-yuan green chemical new materials industrial cluster.

Simultaneously, it is anticipated to drive downstream industries such as packaging, building materials, and automotive, fostering an industrial ecosystem characterised by 'flagship enterprises leading cluster development'.

From everyday commodities to high-end manufacturing, Guangxi Petrochemical states it will take this commissioning as a starting point. Focusing on market demand and technological advancement, it aims to fully unleash chemical production capacity and stride forward on a new journey of industrial upgrading.