Dushanzi Petrochemical Tarim Phase II ethylene complex: recent progress, technologies and portfolio

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Tarim Ethylene Project (Phase I and Phase II)
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Kokel, Nicolas
12/6/2025 4:12 PM

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In November 2025, construction of key supporting facilities for the Dushanzi Petrochemical Tarim Phase II 1.2 Mt/a ethylene project in Korla, Xinjiang, is progressing, with the chemical warehouse and living service center now handed over or in operation. The project will build a grassroots ethylene complex using local ethane, LPG and light hydrocarbons from the Tarim oilfield, including units for ethylene, full‑density PE, LDPE/EVA, PP, butadiene extraction, MTBE/1‑butene, cis‑butadiene rubber, cracked gasoline and aromatics extraction, producing a portfolio of polyolefins, rubber, MTBE, aromatics and by‑products such as polyethylene wax and butadiene. It positions the complex as part of CNPC’s plan to create a large base for ethylene from light feedstocks, improve utilization of regional resources and support higher‑value refining‑petrochemical development.


Project facilities

Construction of the Dushanzi Petrochemical Tarim Ethylene Phase II project’s chemical warehouse started on 30 June 2024 and has now passed initial handover after around 500 days of work by the PMT5 project team and several contractors. The warehouse includes 16 buildings with a total floor area of over 2,000 m² and uses modular design and functional zoning to meet high safety standards.​

On 10 November 2025, the worker dormitory and gym of the project’s living service center were commissioned in the Korla Shangku High‑tech Petrochemical Park. The living service center is a key regional project with a total floor area of 48,414.86 m², combining offices, meeting and archive functions, shift apartments, canteen and sports facilities to support site operations and staff welfare.


Ethylene project scope

The Dushanzi Petrochemical Tarim Phase II ethylene project officially started construction on 28 September 2023. It will build a 1.2 Mt/a ethylene unit, a 300 kt/a LDPE unit with EVA capability, a 450 kt/a polypropylene unit and two 450 kt/a full‑density polyethylene units, among other installations.​
 

Unit name Design capacity (t/a) Corrected technology / licensor
(as of July 2026)
Ethylene unit 1,200,000 PetroChina proprietary ethane-cracking technology
Cracked gasoline hydrogenation unit 350,000 PetroChina proprietary process technology
FDPE unit ×2 2 × 450,000 PetroChina self-developed gas-phase fluidized-bed technology
(changed from originally planned Unipol license)
LDPE/EVA unit 300,000 LyondellBasell Lupotech T tubular process
(unchanged, license retained)
PP unit 450,000 Huanqiu Beijing / PetroChina self-developed PP polymerization technology (first industrial application)
Butadiene extraction unit 120,000 PetroChina proprietary process technology
MTBE / 1-butene unit 80,000 / 40,000 PetroChina proprietary process technology
Cis-butadiene rubber unit ×2 2 × 50,000 PetroChina proprietary process technology
(cis-1,4-polybutadiene, not SSBR/SBS) 
Cracked gasoline unit 340,000 PetroChina proprietary process technology
Aromatics extraction unit 250,000 SED-BTX aromatics extraction process
(Petrochemical Research Institute)


The project site is the Korla Shangku High‑tech Industrial Development Zone petrochemical park, and the project is a grassroots development. According to the second public environmental‑impact notice released on 26 April 2023, the complex includes an ethylene unit, FDPE, LDPE (with EVA), PP, butadiene extraction, MTBE/1‑butene, cis‑butadiene rubber, cracked gasoline and aromatics extraction units, together with utilities, auxiliary production and storage/handling facilities.


Products and feedstock

Planned main products are HDPE, LLDPE, LDPE, EVA, PP, cis‑butadiene rubber, MTBE, cracked C5, benzene, toluene, mixed xylenes and cracked fuel oil, with by‑products including polyethylene wax, butadiene and C9+ aromatics.

The project processes local ethane, LPG and light hydrocarbons from the Tarim oilfield to produce ethylene, targeting large scale, short process routes, relatively low investment, short construction period and high returns.
 

Main unit Design capacity (t/a) Product Output (t/a) Destination/use
Ethylene unit 1,200,000 Hydrogen 11,900 To hydrogen pipe network
Methane-rich gas 443,100 356,700 self-consumed, remainder to fuel gas network
Ethylene 1,200,000 FDPE unit 873,300; LDPE/EVA unit 303,000; PP unit 23,700
Propylene 413,400 To PP unit
Cracked C4 296,800 To butadiene extraction unit
Cracked gasoline 342,200 To cracked-gasoline hydrogenation unit
Cracked fuel oil 44,700 Intermediate tank farm
Cracked gasoline hydrogenation 350,000 Hydrogenation tail gas 2,800 Back to ethylene unit
Cracked C5 4,900 Product tank farm
Hydrogenated gasoline 238,300 To aromatics extraction unit
C9+ and heavy components 17,200 Product tank farm
FDPE unit (2×450,000) 900,000 HDPE 527,800 For sale
LLDPE 370,100 For sale
LDPE/EVA unit 300,000 LDPE 300,000 For sale
EVA 300,000 For sale (swing plant — alternates between LDPE and EVA campaigns, each up to full 300,000 t/a capacity, not simultaneous)
PP unit 450,000 Impact copolymer PP 187,200 For sale
Random copolymer PP 99,300 For sale
Homopolymer PP 158,400 For sale
Butadiene extraction 120,000 1,3-Butadiene 114,800 13,500 sold externally, remainder to cis-butadiene rubber unit
Raffinate C4 175,700 To MTBE/1-butene unit
Propyne tail gas 2,700 Back to ethylene unit
Hydrogenated C4 3,900 Back to ethylene unit
MTBE/1-butene unit 80,000/40,000 MTBE 82,500 For sale
1-Butene 35,000 To FDPE unit
Remaining C4 88,000 Back to ethylene unit
Cis-butadiene rubber (2×50,000) 100,000 Nickel-based cis-BR 50,000 For sale
Rare-earth (neodymium) cis-BR 50,000 For sale
Aromatics extraction 250,000 Benzene 79,600 For sale
Toluene 51,400 For sale
Xylene 30,100 For sale
Raffinate oil 77,300 For sale

Strategic role

Once completed, the complex together with the existing ethane‑to‑ethylene facilities will form one of China’s largest bases using C2 and light feedstocks for ethylene production. The project is intended to support local utilization of resources, secure outlets for light components from the oilfield, enhance the natural‑gas value chain and support CNPC’s refining‑petrochemical business development.
 

Note: Information details based on the second public announcement of public participation in the environmental impact assessment of the Tarim 1.2 million tons/year phase II ethylene project of Dushanzi Petrochemical Company released on April 26, 2023 on the Korla government website, and on the progress report published by Process Industry (Nov 21, 2025) titled: Dushanzi Petrochemical Tarim Phase II ethylene project chemical warehouse handed over

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