In a bold move signaling China’s next stage of petrochemical ambition, Shandong Yulong Petrochemical has proposed a ¥117.86 billion (USD 16.42 billion) project to integrate high-value petrochemical production into its sprawling Yantai refinery complex.
Derived from a government notice issued by the Ministry of Natural Resources and reported by Jiemian News, the plan outlines a major transformation: feedstocks like ethylene and propylene will be converted into advanced materials, including super absorbent polymers and biodegradable plastics, servicing industries from automotive and electronics to eco-packaging.
This isn’t Yulong’s first large-scale initiative: as of September 2024, the company had already initiated startup of a 400,000-barrel-per-day refinery and a 3 million-ton-per-year ethylene cracker, a suite of petrochemical units designed to consolidate Shandong’s fragmented refining sector. The Yantai-based complex is expected to produce 3 million mt/year of mixed aromatics and includes cutting-edge Honeywell UOP technologies, such as CCR platforming and Isomar isomerization.
Yulong Petrochemical is majority-owned by Nanshan Group (51%), with Shandong Energy Group holding 46.1%, and the rest shared between two local firms.
In short, Yulong’s sweeping USD 16.4 billion upgrade rounds out its rise from a fuel-focused refinery to an innovative petrochemical powerhouse, fueling new growth in China’s high-value plastics and material manufacturing.
