Yulong Island Refining and Chemical Integration Project, Shandong's Biggest Single Investment Project, Officially Launched

In the morning of September 25,the second batch of equipment for Phase I of the Yulong Island Refining and Chemical Integration Project commenced commissioning,marking a significant milestone in the structural adjustment,transformation,and upgrading of Shandong’s petrochemical industry.

As a major national productivity layout project and the industrial initiative with the biggest investment in Shandong Province in recent years,the Yulong Island Refining and Chemical Integration Project is a key component of China's"14th Five-Year Plan".Phase I includes two production lines with capacities of 20 million t/a oil refining,three million t/a ethylene,and three million t/a mixed xylenes.Launched in October 2020 with a total investment of RMB 116.8 billion,the project consolidates 26.96 million tons of decentralized refining capacity in Shandong,reducing coal consumption by 750,000 tons and carbon dioxide emissions by four to five million tons annually.This project builds a complete industrial chain of oil refining and chemical industries to achieve whole-process high-value utilization of crude oil,with the objective of establishing a"domestically leading,world-class",high-end,green,and smart petrochemical industry base.

Since the project commenced in October 2020,Nanshan Group has shouldered the responsibility of project implementation,under the directives and deployments of the CPC Shandong Provincial Committee,the Shandong Provincial People's Government,and the CPC Yantai Municipal Committee,and Yantai Municipal People's Government.The company has actively fulfilled the responsibilities and obligations of a major shareholder,built consensus,acted in unison,strictly toed the red line of"work safety"and the bottom line of"ecological and environmental protection",and adhered to the principles of"quality first,efficiency foremost,and standardized management",achieving significant progress in Phase I.

As a landmark project for the province's replacement of old growth drivers with new ones,the Yulong Island Refining and Chemical Integration Project has many characteristics and advantages,including reduced capacity replacement,flexible process design,independent equipment innovation,the production of high-end and low-carbon products,and the implementation of a mixed ownership system.The project serves as a shining role model for the transformation and upgrading of the petrochemical industry.To date,Phase I has seen an investment of RMB 115.95 billion,with an expected annual sales revenue of RMB 116.6 billion upon designed capacity.

Moving forward,the Yulong Island Refining and Chemical Integration Project will adhere to the highest standards in planning,positioning,construction quality,technical products,advancement speed,support,and guarantees.The project will set high benchmarks,implement scientific planning,develop in a staggered manner with the seven major domestic petrochemical industrial bases,aspire to international prominence,enhance investment attraction in the industrial chain,develop downstream products such as new chemical materials,and establish a"domestically leading,world-class",high-end,green,and smart petrochemical industry base.