Sinopec has completed the mechanical construction of the Phase II expansion and advanced materials project at its Zhenhai Refinery in Ningbo, Zhejiang, pushing the base’s total refining capacity beyond 50 million tonnes per year. This milestone makes the Zhejiang Ningbo petrochemical industrial base China’s largest and most advanced globally competitive facility, with significant implications for overseas buyers of polyolefins, advanced materials, and specialty chemicals.
Capacity and output expansion
The expansion, with a total investment of 41.6 billion yuan (about $5.7 billion), includes 18 production units such as atmospheric distillation, catalytic cracking, polypropylene, and propane dehydrogenation. The Zhenhai Refinery’s capacity now reaches 40 million tonnes per year, contributing to the base’s overall 50-million-tonne refining capacity. The facility is expected to supply approximately 8 million tonnes of petrochemical products annually, enhancing supply chains for automotive, home appliance, and textile industries in the Yangtze River Delta region.
Technology and sustainability highlights
The project localized 10 core technologies, including the world’s highest-capacity vertical screw air compressor. It also deployed smart manufacturing systems, integrating a domestically developed industrial operating system and an industrial internet platform to optimize decision-making and management. Comprehensive energy-saving measures achieved an 11.7% reduction in total energy consumption. Safety and quality were prioritized, with over 90 million consecutive safe work hours and a 100% quality pass rate for all units.
What buyers should watch
Overseas importers and distributors should monitor the increased output of high-performance polyolefins and advanced materials from this base, which will likely affect regional pricing and availability. The Zhenhai Refinery, Sinopec’s largest integrated refining and chemicals enterprise, has an ethylene capacity of 2.2 million tonnes per year and is the only Chinese facility consistently ranked in the top tier of Solomon Associates’ global ethylene performance evaluation. This expansion strengthens Sinopec’s position as a reliable supplier for global markets.
China sourcing context
The Zhejiang Ningbo base, located in the Yangtze River Delta—a major consumption hub—plays a vital role in Sinopec’s value chain. The project creates multiple high-value-added supply chains, focusing on chemical processes. This development underscores China’s push for self-sufficiency in advanced petrochemical technologies and materials, potentially reducing dependence on imports and offering competitive sourcing options for international buyers.
Source: Read the original report | Published: December 27, 2024