PetroChina subsidiary Dushanzi Petrochemical’s “Tarim Phase 2 Ethylene Project” in China’s Xinjiang region has reached full production at a capacity of 1.2 million tonnes per year, it is reported. With this startup, Dushanzi Petrochemical’s total ethylene production capacity has risen from 2 million tonnes/year to 3.2 million tonnes/year, according to reports.
The project is located in the Petroleum and Petrochemical Industrial Park of the High-Tech Industrial Development Zone in Korla (Kuerle), Xinjiang. In addition to the 1.2 million tonnes/year ethylene unit, the project comprises 11 major production units in total, including two 450,000 tonnes/year full-density polyethylene units and a 300,000 tonnes/year low-density polyethylene unit, it is reported. Construction began in 2023, mechanical completion was achieved in May 2026, and the entire process train was reported to have reached normal operation on July 16, 2026, following commissioning.
Regarding applied technology, 10 of the 11 major production units reportedly use proprietary domestic technology, nine of which are PetroChina’s own technology. Notably, three compressors for cracked gas, ethylene refrigeration, and propylene refrigeration were switched from steam turbine drives to electric drives, resulting in an estimated carbon emission reduction of about 210,000 tonnes per year, it is reported. The localization rate for core equipment reportedly exceeds 98%.
The project has reportedly been promoted as a key initiative supporting China’s “dual carbon” (carbon peak and carbon neutrality) strategy and the petrochemical industry’s green transition. Implications for Korea’s Industry
As large-scale ethylene facilities in China’s inland Xinjiang region come online in succession, regional polyolefin supply is expected to expand, which could affect Korean petrochemical exports to China and the competitive landscape across Asia, it is reported.
Attention is focused on the actual operating rate once the plant stabilizes, and on where the downstream polyethylene and polypropylene products will ultimately be sold.