It is reported that the ethane and light hydrocarbon-to-ethylene project being pursued by PetroChina’s Huhhot Petrochemical (呼和浩特石化) branch in Wushen Banner (乌审旗), Ordos, Inner Mongolia, achieved a key milestone on August 4, 2026, when the Wushen Banner People’s Government published a social stability risk assessment disclosure. The total investment is reported to be approximately RMB 19.856 billion, and the project is planned as a large-scale petrochemical complex centered on ethylene production of 1 million tons per year.
According to reports, the project will use ethane and light hydrocarbons produced from the Sulige gas field as feedstock to produce ethylene, a process regarded as lower-carbon compared to conventional naphtha cracking. It is reported that the pre-feasibility study and basic design were handled by China Huanqiu Contracting & Engineering Co., Ltd. (中国寰球工程有限公司), a major PetroChina-affiliated engineering firm specializing in integrated ethylene and petrochemical projects. The site is located in the Sulige Economic Development Zone, Wushen Banner, Ordos City, Inner Mongolia, and the construction period is reported to run for 24 months, from June 2027 to June 2029.
The total investment is reported at approximately RMB 19.856 billion. The core facility, ethylene, has a planned capacity of 1 million tons per year, along with associated facilities including HDPE (High-Density Polyethylene) at 300,000 tons/year, FDPE (Full-Density Polyethylene) with two units of 400,000 tons each (800,000 tons/year combined), PP (polypropylene) at 250,000 tons/year, a butadiene extraction unit at 50,000 tons/year, and a pyrolysis gasoline hydrogenation unit at 100,000 tons/year. The social stability risk assessment disclosed on this occasion is reported to be the latest version, adjusted down from an originally planned 1.2 million tons to 1 million tons. On the same day, it is reported that Qingdao Ousaisi was confirmed as the top-ranked candidate in the bidding for energy-saving assessment services.
It is reported that the project reflects a broader trend of refining and petrochemical facilities located near gas fields in China shifting toward ethane and light hydrocarbon-based feedstock. The move is interpreted as a strategy to secure cost and carbon-emission competitiveness relative to naphtha cracking.
Ethane and light hydrocarbon-based ethylene production represents a differentiated approach to feedstock sourcing and cost competitiveness compared to naphtha cracking, drawing attention as a case that could influence global ethylene supply chains and technology trends. The involvement of a major engineering firm from the pre-feasibility and basic design stages is also seen as a reference point for the competitive landscape in the EPC (Engineering, Procurement and Construction) contracting of similar future projects.
Following the disclosure of the social stability risk assessment, subsequent approval procedures such as environmental impact assessment and energy-saving assessment are expected to proceed in sequence, with the selection of the EPC contractor and the actual construction start date cited as key points to watch.