China’s Sinopec begins Xinjiang refining and chemical upgrading project
China’s Sinopec has begun construction to upgrade its integrated refining and petrochemical project in the oil- and gas-rich Xinjiang region. The upgrade plan for the Tahe refining and chemical project includes expanding refining capacity and adding production capabilities for ethylene and paraxylene products, state-owned Sinopec said.
The company said it will increase its crude oil refining capacity to 8.5 million tons per year from 5 million tons and build 16 refining and chemical units, including a 2.4-million-ton-per-year hydrocracking unit, a 1.5-million-ton continuous catalytic reforming unit, an 800,000-ton ethylene cracking unit and an 800,000-ton aromatics complex.
The upgraded construction is expected to be finished by 2029.
Upon completion and commissioning, the project is expected to generate approximately 20.2 billion yuan ($2.8 billion) in additional annual output value, based on a crude oil price of $60 per barrel.
Sinopec, which is developing crude oil production capacity in the region, said in its 2025 interim results that 27.6 billion yuan ($3.9 billion), or 63% of first-half capital spending, was for exploration and development, mainly for capacity construction in Tahe and Jiyang in Fujian province.
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