By Sam Li and Lewis Jackson
(Reuters) -China’s Sinopec has begun construction to upgrade its integrated refining and petrochemical project in the oil- and gas-rich Xinjiang region, the world’s largest refiner by capacity said on Saturday.
The upgrade plan for the Tahe refining and chemical project includes expanding refining capacity and adding production capabilities for ethylene and paraxylene products, state-owned Sinopec said in a statement.
The company said it will increase its crude oil refining capacity to 8.5 million tons per year from 5 million tons and build 16 refining and chemical units, including a 2.4-million-ton-per-year hydrocracking unit, a 1.5-million-ton continuous catalytic reforming unit, an 800,000-ton ethylene cracking unit and an 800,000-ton aromatics complex.
The upgraded construction is expected to be finished by 2029.
Upon completion and commissioning, the project is expected to generate approximately 20.2 billion yuan ($2.8 billion) in additional annual output value, based on a crude oil price of $60 per barrel.
Sinopec, which is developing crude oil production capacity in the region, said in its 2025 interim results that 27.6 billion yuan ($3.9 billion), or 63% of first-half capital spending, was for exploration and development, mainly for capacity construction in Tahe and Jiyang in Fujian province.
($1 = 7.1151 Chinese yuan renminbi)
(Reporting by Sam Li and Lewis Jackson in Beijing; Editing by William Mallard)
