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Rendering of the Luoyang Million Tonne Ethylene Project | Source: Luoyang Network Media Group via QQ Browser, Tencent Channel (Mar 29, 2023)

Overview

The Luoyang Million-Tonne Ethylene Project (洛阳百万吨乙烯项目) is a major downstream expansion of the Sinopec (Henan) Refining & Chemical Co. Ltd., with a total approved investment of ¥27.8 billion (~US$3.9 billion). The project is based on feedstocks (naphtha, refinery gas, and LPG) supplied directly by the adjacent Henan Refinery and Chemical Complex (formerly named Luoyang Petrochemical Complex), enabling a tightly integrated refining-to-chemicals configuration. It is positioned as a "Green Petrochemical Advanced Materials Industrial Base" aimed at reducing China's import dependence on high-end petrochemical products such as metallocene polyethylene (mLLDPE), photovoltaic-grade EVA, reactor-alloy polypropylene (impact copolymer), and SEBS thermoplastic elastomers.

The project was confirmed as using predominantly domestic (Sinopec proprietary) technologies, reflecting China's technology-sovereignty strategy in the petrochemical sector. The high-pressure LDPE/EVA units are the notable exception, using imported high-pressure tubular/autoclave process technology — specifically LyondellBasell's Lupotech T process for the tubular LDPE/EVA line.

Site Location

The project is split across two sections within the Advanced Manufacturing Development Zone of Mengjin District, Luoyang City:

• Changling section (新昌新区): Located in the northeast of the Changling area of the park; land area 201.05 ha, all newly acquired

• Baling section: Located on the south side of the Baling Petrochemical Company's refining department; total land area ~46.4 ha (27.26 ha newly acquired); the cogeneration unit expansion occupies a further 19.14 ha within the existing thermal power department (no additional land acquisition required)

Luoyang Petrochemical Branch district location map | Translated from map published on sohu.com (March 6, 2024)

Process Units

The project comprises 13 main production units plus supporting public works and auxiliary facilities, as well as simultaneous refinery adaptability transformation works:

Note on LDPE/EVA licensor: LyondellBasell's Lupotech T high-pressure tubular process is directly attributed to the Luoyang EVA/LDPE unit in a LinkedIn industry analysis. This is consistent with LyondellBasell's extensive licensing of Lupotech T technology across Chinese petrochemical projects for photovoltaic-grade EVA production. The 100 kt/y EVA autoclave unit licensor has not been publicly confirmed in available sources.

Key Products

The project targets high-value, high-technology products including:

• Metallocene polyethylene (m-LLDPE): High-performance grades for packaging and industrial films

• Photovoltaic-grade EVA: For solar panel encapsulant films, reducing China's import dependence

• Reactor-alloy polypropylene (in-reactor alloy PP): High-impact copolymer grades

• SEBS thermoplastic elastomer: For adhesives, sealants, and high-end compounding

• Ethylene oxide (EO): For downstream derivatives

Economic Impact

Upon full commissioning, the project is expected to:

• Generate annual chemical product sales of ~3 million tonnes

• Increase annual output value by ¥20 billion

• Generate additional annual tax revenue of ¥1.8 billion

• Catalyse >¥160 billion of downstream industrial chain investment

• Create an industrial cluster described as "hundreds of billions of investment, 10,000 jobs"

EPC Contractor

The EPC contract for the project was awarded to Sinopec Engineering Group (SEG), with a total contract value of approximately ¥3.291 billion. SEG is responsible for engineering, procurement, and construction of the main process units.

Project Timeline

Execution Status (as of May 2026)

The project is behind its original December 2025 completion schedule. As of the SEG 2025 Annual Results announcement (March 2026), the ethylene unit was described as still being "in the stage of basic design" for some sub-components, while the auxiliary units had entered the equipment steel structure installation stage with an overall project progress of approximately 50%. The refinery supporting works (炼油配套工程), which started construction in March 2025, had reached key structural milestones by November 2025, including completion of the fractionation column high-formwork concrete pour. Completion is now expected after 2026.

References

1. General Office of the People's Government of Henan Province —  Sinopec and Henan Shenma Guoxing signed an investment cooperation intention agreement (Dec 31, 2023)
2. Mysteel / OilChem — Sinopec starts construction of a new ethylene cracking unit (Jun 6, 2023)
3. SASAC (State-owned Assets Supervision and Administration Commission) — Total investment of 27.8 billion yuan! Sinopec Luoyang Million-Tonne Ethylene Project and Green Petrochemical Advanced Materials Industrial Base breaks ground (May 31, 2023)
4. Simcan Industry — Sinopec Luoyang Million Tons of Ethylene Project Started (Jun 9, 2023)
5. Chemdo — Luoyang million tons of ethylene project made new progress (Nov 03, 2022)
6. Seetao — Sinopec Luoyang million tons of ethylene project started (May 27, 2023)
7. Process Industry (流程工业) — Luoyang million-tonne ethylene project and refinery supporting works: positive progress on all fronts (Dec 12, 2025)
8. Process Industry (流程工业) — Luoyang Petrochemical million-tonne ethylene project refinery supporting works break ground (Mar 31, 2025)
9. EQS News Sinopec Engineering Group (SEG) — SEG Announced 2025 Annual Results (Mar 15, 2026)
10. HKEX News — SINOPEC Engineering (Group) Co., Ltd. 2025 • Interim Results Announcement (Aug 17, 2025)
11. Sina Finance — Sinopec Luoyang: million tons of ethylene project preparation engineering testing! (Nov 7, 2025)
12. China Chemical Market Insights / Linkedin — Spotlighting China's Leading Petrochemical Companies: EVA Projects Part II (Sep 27, 2023)
13. Blooming Global — China's C2 Industry Chain Sees Capacity Expansion and Technological Breakthroughs (Dec 15, 2025)
14. Baidu / Baijiahao — With a total investment of 27.8 billion yuan, the new million tons of ethylene project started (Oct 22, 2024)