In the vast Gobi Desert of Xinjiang, large-scale coal chemical engineering projects are being intensively constructed. The local coal to ethylene glycol project of Hengyi Petrochemical is steadily advancing, and the grand industrial plan is transforming from a concept to a reality. Relying on the advantages of local coal resources, this new industrial chain will change the situation of relying solely on crude oil production, build a dual line parallel industrial layout, effectively stabilize market cycle fluctuations, and stabilize downstream raw material supply. While the project construction is steadily advancing, the business situation of the enterprise continues to improve, with multiple advantages stacked together, accumulating sufficient confidence for long-term development.

Billion dollar project landing in Xinjiang

Recently, Hengyi Petrochemical's heavyweight coal chemical layout has steadily landed, with a total investment of 25.7 billion yuan and an annual output of 2.4 million tons of high-end coal to ethylene glycol project starting construction in Xinjiang. It is planned to be completed and put into operation in the first half of 2028, laying a solid core support for the enterprise to create a dual line oil coal anti cycle industrial pattern.

It is reported that the project is being constructed by Hengyi Energy Technology (Turpan) Co., Ltd., a wholly-owned subsidiary of the group, and the construction is currently progressing in an orderly manner. The project has completed all statutory preliminary procedures such as project registration, land review, and environmental assessment. All necessary approval processes for commencement have been completed, marking the official entry of this large-scale project into the substantive construction stage. The total investment of the project is 25.7 billion yuan, and the funds will be jointly raised by the enterprise's own funds and market-oriented financing. The planned production node is locked in the first half of 2028.

Diversified layout hedging cycle

The core strategic value of this project is to help Hengyi Petrochemical break free from the industry cycle fluctuations caused by a single petroleum raw material; Expand the supply channels of raw materials, rely on the abundant and low-cost coal resources in Xinjiang, replace the traditional oil production route with coal to ethylene glycol, build a complete industrial chain of coal ethylene glycol polyester, and reduce the dependence of enterprises on international crude oil single raw materials from the source.

Enhance the industry's ability to resist risks. After the project is put into operation, the enterprise will form a rare collaborative industry system of oil, coal, and textile in the industry. When international oil prices rise, the coal to gas route relies on low costs to stabilize profits; When oil prices fall, the refining and chemical sector forms a profit hedge, greatly improving the stability of the entire industry chain's revenue and the predictability of performance. Matching downstream production demand, the project outputs ethylene glycol directly to the company's existing PTA and polyester filament production lines for self use, stabilizing the supply of raw materials for the polyester core sector, and continuously consolidating the cost advantage and supply chain security of downstream products. Keywords: Xinjiang, Hengyi Petrochemical, Coal to Ethylene Glycol

The industry is improving and the performance is impressive

According to the financial report for the first quarter of 2026 disclosed by Hengyi Petrochemical, the company's revenue for the period reached 29.9 billion yuan, and the net profit of shareholders of the listed company surged by more than 37 times year-on-year, setting the best operating performance for the same period since the company went public. The profits of core products such as polyester and caprolactam have rebounded significantly.Editor/Gong Ziwei