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China's production capacity dynamics: Shanghai Petrochemical 21.3 billion yuan technical transformation project to start bidding, Yangtze River Delta refining to start oil reduction and upgrading.
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2026-09-20
1. Core Overview of Project Bidding
september 15-21, 2026, shanghai Petrochemical, China officially released the tender announcement of the EPC general contract for the first bid section of the comprehensive technical transformation and upgrading project. The total investment of the project is 21.307 billion yuan, which is china Yangtze River Delta the core area benchmark stock refining transformation and upgrading project, relying on the plant stock land transformation, no new land, led by Sinopec landing. The estimated amount of this bid section is 5.634 billion yuan, with a planned construction period of 822 days, covering 9 core main items, including the newly-built 1.2 million-ton/year ethylene plant, 400000-ton/year FDPE polyethylene plant, and a complete set of public works systems such as torch recovery, circulating water yard, fire fighting and substation cabinet. Among them, the design maximum temperature of the newly-built ethylene plant is 910 ℃, the design pressure is 13.31MPa, and the process parameters are compared with the international advanced refining and chemical plant.
2. plant configuration and capacity replacement system
this technical reform adopts the mode of "replacing the old with the new and optimizing the production capacity", and the overall supporting system is perfect. A total of 8 new core units have been built in the chemical sector, covering 1.2 million tons/year ethylene, 200000 tons/year butadiene extraction, 700000 tons/year pyrolysis gasoline hydrogenation, 400000 tons/year aromatics extraction, 300000 tons/year vinyl acetate, 400000 tons/year FDPE polyethylene, 100000 tons/year carbonate and other production capacity. Among them, the 400000-ton/year FDPE device has flexible production capacity, can flexibly switch the output of LDPE, EVA two types of high value-added products, to adapt to multiple downstream demand.
At the same time, the project will simultaneously push forward the upgrading of the oil refining sector, build 7 new sets and transform 3 sets of oil refining units, optimize 2 sets of original chemical units, and eliminate and shut down 18 sets of backward production capacity including 700000 tons/old ethylene units. Through capacity replacement, the effective capacity of ethylene increased by 500000 tons, realizing the quality expansion of stock capacity. In addition, the project supporting carbon nine comprehensive utilization production line, can produce high-end new materials such as cyclopentanol, cyclopentone, ring olefin monomer, rich East China high-end chemical supply category.
3. Project Transformation Orientation and Industrial Logic
the project was officially launched in June 2025 and is planned to be completed and put into operation in 2028, with all funds raised by the enterprise itself. The core positioning is china's Refining and Chemical Industry Typical Oil Reduction and Increase Upgrading the total scale of 14 million tons/year crude oil processing in the whole plant will remain unchanged. By eliminating backward equipment and reducing the output of refined oil, the plant will focus on expanding the production capacity of ethylene and downstream new materials, simultaneously improving the safety, environmental protection and energy saving level of the plant area, and adapting to the domestic substitution trend of new materials.
Interpretation of the Impact of Trade Pattern in the Yangtze River Delta in 4.
Shanghai, China located in the core consumption hinterland of the Yangtze River Delta, it is the core area of domestic chemical circulation and trade distribution. After the project is put into operation, the local supply of EVA, LDPE, vinyl acetate, high-end carbonate and carbon nine derived new materials will be greatly increased, directly rewriting the supply structure and circulation path in East China. In the short term, it will alleviate the supply gap of high-end polyolefin and fine chemical raw materials in the Yangtze River Delta, and in the long term, it will aggravate the market competition of new materials in the downstream of ethylene, and change the regional price difference and inventory cycle. For global chemical traders and downstream processing enterprises, the progress of the project will become the core tracking index of raw material procurement, inventory layout and arbitrage trading in East China in the next three years.
