September 26, 2024 – The highly anticipated Yulong Island Refinery and Petrochemical Integration Project in Yantai officially commenced operations on September 25th. This project, marking the largest single industrial investment in Shandong Province thus far, bears the symbolic mission of transitioning the province’s old and new growth drivers. Provincial Party Secretary Lin Wu and Provincial Party Deputy Secretary, Governor Zhou Naixiang, were present at the site to jointly announce and witness this historic moment. Concurrently, Provincial Party Standing Committee Member and Yantai Municipal Party Secretary Jiang Cheng, via live connection from Yulong Island, elaborated on the project’s construction progress to attendees.
The Yulong Island Refinery and Petrochemical Integration Project adopts a strategic approach of overall planning and phased implementation. Phase one centers on the utilization of imported crude oil, aiming to establish a refining capacity of 20 million tons per annum (MTA), along with 3 million MTA of mixed aromatics and 3 million MTA of ethylene refining and petrochemical integration capabilities. The construction scope broadly encompasses main works, storage and transportation facilities, and utility and auxiliary engineering. Notably, the main works include a suite of high-tech, high-efficiency refining units, such as 10 million MTA atmospheric distillation and atmospheric-vacuum distillation units, as well as multiple residue hydrogenation, diesel hydrogenation, and diesel hydrocracking units. Additionally, there are kerosene hydrogenation, catalytic cracking, wax oil hydrocracking units, and production facilities for ethylene, aromatics integration, pyrolysis gasoline hydrogenation, butadiene, and ethylene glycol (EG), forming a comprehensive refining and petrochemical integration production system.
According to Color Masterbatch Industry Network insights, the first phase’s 10 million tons refining second-series unit has successfully commenced operations, while the first chemical series unit is anticipated to start up in November. Meanwhile, the 10 million tons refining first-series unit and the second chemical series unit are expected to be fully ready for commissioning by the end of the year, with trial operations scheduled at an appropriate time. The implementation of this project will not only significantly enhance Shandong Province’s refining and petrochemical capacity but also play a positive role in environmental protection. Upon completion of phase one, it is estimated that the province’s local refining capacity will decrease by 6.96 million tons, reducing annual CO2 emissions by 4-5 million tons.