China Petroleum & Chemical (Sinopec) has completed the second-phase expansion and advanced materials project at its Zhenhai Refinery, which involved an investment of CNY41.6bn ($5.7bn).
This completion increases the Chinese refinery’s annual processing capacity to 40 million tonnes. This positions the Zhejiang Ningbo Petrochemical Industrial Base as a regional leader with a total refining capacity exceeding 50 million tonnes per year.
Located within the Yangtze River Delta, a key centre for downstream product consumption, the Zhejiang Ningbo Petrochemical Industrial Base plays a central role in Sinopec’s industrial operations.
The recently completed expansion at the Zhenhai Refinery incorporates 18 production units. These include those for atmospheric distillation, catalytic cracking, polypropylene, and propane dehydrogenation.
According to Sinopec, these facilities enable chemical-driven production processes aimed at creating diversified supply chains.
Sinopec stated: “The facility’s expanded production capacity supports the development of high-end polyolefins, advanced materials, and speciality chemicals.”
The upgraded refinery is projected to produce eight million tonnes of petrochemical products annually, supporting the supply of materials for sectors such as automotive, textiles, and home appliances.
The enhanced production capabilities are expected to contribute significantly to industrial activity, with projected economic impacts generating trillions of yuan in value across upstream and downstream markets.
Zhenhai Refinery, recognised as Sinopec’s largest integrated refining and chemical operation, now has an ethylene production capacity of 2.2 million tonnes per year.
Established in 1975 as the Zhejiang Refinery, the facility was incorporated into China Petrochemical Corporation in 1983 and restructured into Zhenhai Refining and Chemical, becoming listed on the Hong Kong Stock Exchange in 1994. In 2006, it was delisted and incorporated as Sinopec Zhenhai Refining and Chemical.
