Become a 300,000-ton Polypropylene Project in Daqing where the Resources are Winning in the Market--the Tenth Five-Year Key Projects

The 300,000-ton-per-year polypropylene project at China National Petroleum Daqing Refinery Branch is one of the key initiatives aimed at revitalizing the old industrial base in Daqing. It currently holds the title of China’s largest single-line polypropylene production facility. Since its launch early this year, the plant has been operating smoothly and reached a three-month milestone by November. By mid-year, it had already produced 42,000 tons of high-grade polypropylene products, generating over 300 million yuan in sales revenue. This achievement not only brought significant economic returns but also helped alleviate domestic supply-demand imbalances in polypropylene and provided strong impetus to the local economy and related industries. So far, Daqing Refining & Chemical Branch has demonstrated the technical capabilities of its facilities, successfully producing high-impact copolymers with a balanced combination of rigidity, toughness, and fluidity, as well as random copolymers, BOPP and CPP film materials, fiber and non-woven products, and even automotive components like bumpers and household appliances. These advanced products are helping to enhance the quality and variety of domestic polypropylene offerings. Meanwhile, Taiwan Formosa Plastics Group is in talks with Daqing City to establish a plastic processing base in the region. This potential collaboration could help extend the local petrochemical industry chain and boost the development of the plastic processing sector in Daqing and the broader Northeast region. In line with initial planning, Daqing Petrochemical Branch has begun supplying 74,000 tons/year of propylene raw materials to the new 300,000-ton polypropylene plant. The company has also secured a 300,000-ton/year supply agreement with Daqing Refinery Branch. The mutual supply of raw materials for the planned 450,000-ton/year polypropylene project during the "Eleventh Five-Year Plan" period serves as a critical basis for determining the project's scale. According to Xu Zhanwu, a senior engineer from the Chinese Petroleum Group's chemical expert group and deputy chief engineer at Daqing Refining & Chemical Company, the 300,000-ton/year polypropylene project, which cost 1.243 billion yuan in total investment, was launched with a high technological standard and a focus on modernization and market competitiveness. China has long been a major importer of polypropylene, especially high-grade copolymer materials, which have been largely dominated by foreign suppliers. Although domestic polypropylene production has grown rapidly, the quantity, quality, and variety still fall short of meeting the fast-growing domestic demand, leading to increasing import volumes. According to current planning, China's polypropylene resin production capacity is expected to rise significantly in the coming years, reaching 5.69 million tons/year by 2005. However, the market gap will still be around 2.75 million tons/year, and self-sufficiency will gradually improve. In the future, as polypropylene capacity grows slowly, the import volume may continue to rise, with an estimated 9.14 million tons needed by 2015. Xu Zhanwu noted that Daqing's 300,000-ton/year polypropylene plant has a strong competitive edge, mainly due to its raw material advantages. Daqing's crude oil is easily cracked and rich in light hydrocarbons, and the existing 600,000-ton ethylene plant can supply at least 74,000 tons of propylene annually for the polypropylene plant. Additionally, Daqing Refinery has its own technological advantages in propylene production, and through plant modifications, it can provide 300,000 tons of propylene per year. As propylene production increases across both Daqing Refinery and Daqing Refining & Chemical, these raw material advantages will become even more prominent. To ensure the competitiveness of China's polypropylene products in the market, the company has focused on developing impact and copolymer products with excellent balance of rigidity, toughness, and fluidity, as well as random copolymers, BOPP and CPP films, fibers, non-wovens, and applications in automobiles and home appliances. These areas represent important research and development directions for the future. The 300,000-ton/year polypropylene plant at Daqing Refining & Chemical can produce 103 types of specialized resins, making it the largest producer of polypropylene in China. Looking ahead, the company is considering expanding into high-grade copolymer materials. With sufficient raw material supply and vast market potential, Daqing Refining & Chemical plans to invest an additional 1.8 billion yuan to build a new 450,000-ton/year polypropylene plant, which is scheduled for completion during the "Eleventh Five-Year Plan" period. The company is also working on developing industrial technologies to expand the range of propylene raw materials through technical upgrades and independent research on equipment such as the 120,000-ton/year ARGG (heavy oil catalytic cracking unit). It is planned to add another ARGG unit during the "Eleventh Five-Year Plan" to support the new polypropylene plant. Once operational, the polypropylene production capacity of Daqing Refinery Branch is expected to reach 750,000 tons/year.

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