Progress made on the 1 million ton ethane-to-ethylene project at Hohhot Petrochemical, with a total investment of nearly 19.9 billion yuan.

On August 4, the Uxin Banner Government released the public announcement for the social stability risk assessment of the Hohhot Petrochemical Company's 1 million tons/year ethane light hydrocarbon to ethylene project, marking the continued acceleration of preliminary work for this large-scale ethylene project.

The project construction unit is PetroChina Hohhot Petrochemical Branch, and the site is located in the Tuke Industrial Project Zone of the Sulige Economic Development Zone, Uxin Banner, Ordos City, Inner Mongolia, with a total investment of 19.856 billion RMB (nearly 19.9 billion RMB). The core plan involves constructing a new 1 million tons/year light hydrocarbon ethane cracking unit to produce ethylene, along with supporting downstream polyolefin units, utilities, storage and transportation, and railway supporting facilities; the construction period is tentatively scheduled from June 2027 to June 2029.

In terms of the process route, the project adopts the ethane cracking route, which possesses distinct advantages compared to traditional naphtha cracking: the ethylene yield can reach 77%-81%, far higher than the 30%-35% of the naphtha route; the process flow is short with few by-products, energy consumption is lower, and carbon emission levels are superior to oil-to-ethylene; meanwhile, ethane prices are linked to natural gas, which can hedge cost pressures brought by crude oil fluctuations, ensuring stable cost competitiveness in the medium and long term. The feedstock relies on the abundant natural gas-associated ethane resources in the regional Sulige Gas Field, forming an advantage of local conversion.

Regarding the supply pattern, current domestic ethylene production capacity is concentrated in the East China region, while there are supply gaps in effective ethylene supply in North China and Northwest China. Upon completion and operation, the project will establish another large-scale ethylene production base in the North, directly strengthening the regional supply of ethylene and polyolefins in North China, reducing the North China region's reliance on external imports of olefin products, and optimizing the regional layout of domestic ethylene production capacity.