In August of the Luochuan River Valley, the Environmental Impact Assessment Report (Draft for Comments) for the Yan'an 10 Million Tons/Year Refining and Chemical Integration Transformation and Upgrading Project, commissioned by Yanchang Petroleum Refining and Chemical Company and prepared by Zhongsheng Environment, was quietly posted on the homepage of the county government website. At the beginning of the 10 working day public notice period, the attention of the energy circle in northern Shaanxi once again focused on this loess gully - this is not about building another traditional refinery, but a key step in extending the century old oil selling road of oil and forcefully pulling towards the direction of chemical new materials.

As the first project in the field of energy and chemical industry in Shaanxi Province during the 14th Five Year Plan period, the project is located in Luochuan Industrial Park, Luochuan County, Yan'an City, with a total investment of approximately 80.29 billion yuan. It is one of the largest energy and chemical projects in Shaanxi Province in recent years. The first thing it needs to do is to shut down and transform the three old factories, Yan'an Refinery, Yan'an Petrochemical Plant, and Yongping Refinery, with a total crude oil processing capacity of about 12.4 million tons per year, and integrate them into the new base. It will replace the cage with birds and only build one set of 10 million tons per year atmospheric and vacuum distillation unit and one set of 1.2 million tons per year ethylene unit and supporting refining facilities.

Reduce oil production and increase chemical production

The oil to chemical ratio of the original petroleum refining system is about 9:1, with 90% of the output being finished oil and 10% being chemical products. At present, with the increasing penetration rate of new energy vehicles and the peak demand for transportation fuels, this structure is becoming increasingly passive. The core path of the project is to reduce oil and increase chemical production: optimize the oil to chemical ratio to 5:5, compress the finished oil, and significantly increase the production of basic chemical raw materials such as ethylene. After the completion of the 1.2 million tons/year ethylene plant, it will fill the gap in large-scale ethylene production capacity in northern Shaanxi and provide key raw materials for downstream polyolefins, new materials, and fine chemicals.

Using self-produced crude oil as raw material, the project extends downstream to high-end products such as EVA and electronic grade hydrofluoric acid, directly connecting with the new energy battery, photovoltaic, and electronic information industries. The CCUS demonstration project, which captures over 500000 tons of carbon dioxide annually, has reduced the unit energy consumption of the newly built ethylene plant by more than 15%, making this transformation adhere to the dual carbon target.

approval node

The project pace is very stable: the first public announcement of the environmental impact assessment will be completed in 2024, and it will pass the joint review of the National Development and Reform Commission and multiple ministries in May 2025. Currently, it is being submitted to the State Council for final approval. The land has been included in the national spatial planning, and the 330kV dual power substation, water supply network, and park roads are being promoted synchronously. The Luochuan County government and Yanchang Petroleum Refining Company signed a framework agreement for element guarantee in June 2026, striving to start construction within the year.

This second public announcement will be carried out in accordance with the "Public Participation Measures for Environmental Impact Assessment", and the public announcement period will be 10 working days from the date of release. The public can provide feedback on environmental impact to the construction unit or Zhongsheng Environment through letters, faxes, and emails.

Transformation ledger

How to calculate the account for spending money? The feasibility study calculation shows that after the project is fully put into operation, the annual output value can reach 53.9 billion yuan, with a profit and tax of 13.2 billion yuan, driving the coordinated development of upstream and downstream building materials, logistics, equipment maintenance, and supporting processing. The longer-term account lies in the region: Yan'an, the revolutionary old base area, has shifted from exporting crude oil and gasoline to exporting chemical materials, film materials, and electronic chemicals, with the value chain remaining in the province.keywords:New energy information network

80.29 billion yuan is not about buying capacity expansion, but about buying a complete transformation - shutting down 12.4 million tons of old processing capacity in exchange for a modern integrated plant that combines 10 million tons of intensive atmospheric and vacuum distillation with 1.2 million tons of ethylene. The next phase of energy and chemical industry in northern Shaanxi is gradually emerging from the environmental impact assessment draft in Luochuan.Editor/Yang Meiling