PetroChina commissions major gas-based petrochemical complex in Xinjiang

PetroChina has officially commenced operations at Phase II of its Dushanzi Petrochemical Complex in Korla, Xinjiang, bringing one of China's largest gas-based petrochemical projects into commercial production. The new facility significantly expands the country's domestic ethylene and polyolefin manufacturing capacity while strengthening its inland petrochemical network.

The project includes a 1.2 million tons/year ethylene cracker, along with 1.2 million tons/year of polyethylene (PE) capacity and 450,000 tons/year of polypropylene (PP) capacity. The PE units consist of 300,000 tons/year of LDPE and two HDPE/LLDPE units with a combined capacity of 900,000 tons/year. Commercial production at the complex began in mid-July.

Unlike many of China's coastal petrochemical plants that rely on imported naphtha, the Dushanzi complex uses natural gas liquids (NGLs) sourced from the Tarim Basin as its primary feedstock. This makes it one of the country's largest integrated inland gas-based petrochemical investments.

Supporting China's inland industrial expansion

The startup reflects China's ongoing strategy of diversifying its petrochemical feedstock sources while expanding production beyond its traditional coastal manufacturing hubs. By utilizing domestic natural gas resources from the Tarim Basin, the project strengthens China's gas-based ethylene and polyolefin production capabilities and reduces dependence on imported feedstocks.

Located in Xinjiang, the complex also supports China's broader objective of developing western regions into major industrial centers. Its strategic location enables efficient supply to western China while also serving nearby Central Asian markets.

Potential impact on regional polymer supply

The commissioning of the Dushanzi project highlights China's continued investment in large-scale gas-based petrochemical production using domestic resources. Although producers in North America and the Middle East continue to benefit from lower-cost hydrocarbon feedstocks, the addition of new gas-based capacity in China could gradually diversify the country's raw material mix and lessen its reliance on imported naphtha.

Beyond increasing production capacity, the project may also influence future investment trends within China's petrochemical sector. If similar gas-based complexes are developed, they could reshape regional polyethylene and polypropylene supply dynamics while increasing competition across selected export markets.

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