Oil and gas producer and China National Petroleum (CNPC) unit PetroChina has launched the ethane-fed ethylene project in China’s far-western region of Xinjiang.

PetroChina Dushanzi Petrochemical Company has started producing qualified ethylene products at the refining and chemical facility.

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The plant is equipped to produce 600,000tpa of ethylene, 300,000tpa of high-density polyethylene and 300,000tpa of full-density polyethylene, reported Reuters.

Developed with a $1.24bn (CNY8.04bn) investment, the facility is claimed to be PetroChina’s largest single-investment refining and chemical project in southern Xinjiang.

With the launch of the project, Dushanzi Petrochemical Company’s annual ethylene production capacity has increased to two million tonnes.

The project uses the PetroChina-developed ethane steam cracking process technology while the ethane to be used as feedstock at the facility will be separated from natural gas produced from the Tarim oil field.

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PetroChina expects the project to help reduce dependence on foreign processing technology for ethylene.

Earlier this month, PetroChina Lanzhou Petrochemical Company launched the Changqing ethane-to-ethylene project in Yulin City, Shaanxi Province, and produced up-to-standard ethylene products.

The project involves an 800ktpa ethane-ethylene cracker, a 400ktpa high-density polyethylene (HDPE) plant and a 400ktpa full density polyethylene (FDPE) plant in addition to other utilities and supporting auxiliaries.

Recently, PetroChina reported a profit in the first half of this year amid an increase in oil prices and a rebound in fuel demand.

In the first six months to June 2021, the company’s net profit attributable to its owners totalled $8.19bn (RMB53.04bn).