Dongming Petrochemical, based in Heze, Shandong Province, China, has reportedly published a public disclosure for the environmental impact assessment (EIA) of an integrated refining and petrochemical project valued at 71.3 billion yuan (approximately $10 billion).
The project is reported to involve building an integrated refining-petrochemical complex with 10 million tonnes per year of crude distillation capacity, 1 million tonnes per year of ethylene, and 2.4 million tonnes per year of paraxylene (PX). Around 30 downstream units are planned, centered on higher-value new materials such as ultra-high molecular weight polyethylene (UHMWPE), metallocene polypropylene (PP), and polyolefin elastomers (POE). The specific process technology licensor has not been identified in this disclosure.
The total investment is 71.3 billion yuan (approximately $10 billion), with planned capacity of 10 million tonnes per year of crude distillation, 1 million tonnes per year of ethylene, and 2.4 million tonnes per year of PX. The project is currently at the initial public EIA disclosure stage, reportedly announced in August 2026.
China’s refining and petrochemical industry has been shifting its facility mix away from commodity petrochemical products and toward higher-value new materials, and this project is said to reflect that broader trend.
The trend of large integrated refining-petrochemical projects expanding their share of downstream, higher-value new material units is seen as likely to intensify competition in the specialty materials market, alongside concerns over oversupply in commodity petrochemical products. Demand for process technology licensing related to higher-value new materials is also expected to grow in the equipment and technology licensing market.
Points to watch include the timing of formal permit approvals following the EIA, the construction schedule, and how the eventual EPC contract will be structured.