Total Investment of 22.4 Billion Yuan! Winning Bid Announcement for the EPC Project of the Million-Ton Ethylene Unit of Qilu Petrochemical Corporation

On August 28th, the Qilu Petrochemical Luyou Lulian Transformation and Upgrading Technical Renovation Project with a total investment of 22.4 billion yuan reached a key bidding progress, and the candidate for the EPC general contracting of the core unit of the project——1 million tons/year ethylene plant (including cracked gasoline hydrogenation and waste caustic treatment) was announced.

Three Sinopec engineering companies shortlisted

- First successful bid candidate: Sinopec Engineering Construction Co., Ltd. and Sinopec Tenth Construction Co., Ltd., with an exclusive-tax bidding quotation of 3,219,603,308 yuan

- Second successful bid candidate: Sinopec Nanjing Engineering Co., Ltd., with an exclusive-tax bidding quotation of 3,156,503,666 yuan

- Third successful bid candidate: Sinopec Ningbo Engineering Co., Ltd., with an exclusive-tax bidding quotation of 3,221,679,710 yuan

Project construction plan: build 10 million tons of oil refining + 1 million tons of ethylene, expand crude oil processing capacity to 16 million tons per year

This technical renovation is carried out on the existing site of Qilu Petrochemical. It is planned to build a new 10 million tons/year atmospheric and vacuum distillation unit and a 1 million tons/year ethylene cracking unit. After the renovation is completed, Qilu Petrochemical's total crude oil processing capacity will be increased to 16 million tons per year.

The project adopts the development concept of "reducing oil output and increasing chemical output", reducing the output of low-value-added refined oil products, focusing on increasing the output of ethylene, propylene, high-value-added new chemical materials such as high-end synthetic resins and synthetic rubber. The hydrogen energy resources by-produced by the unit will also be connected to participate in Shandong Province's "Hydrogen into Thousands of Homes" demonstration project.

The project officially started construction in December 2024, and the overall plan is to be completed and put into operation by the end of 2027.