China’s state-owned Sinopec has broken ground on a large-scale upgrade of its Tahe refining and chemical complex in the Xinjiang region. The project seeks to raise crude refining capacity from 5 million to 8.5 million tons per year, while adding 16 new refining & chemical units. Among these are a 2.4 million ton/year hydrocracking unit, a 1.5 million ton catalytic reforming unit, plus 800,000 ton capacity each for ethylene cracking and aromatics.

The enhancements are expected to deliver an estimated ¥20.2 billion (~US$2.8 billion) in additional annual output value (based on a crude oil price of US$60/barrel) once fully operational, targeted for completion by 2029.

This move underscores Sinopec’s push to integrate large-scale refining with petrochemical capacity, boosting downstream value. It also reflects China’s strategy to secure domestic supply of high-value chemical feedstocks, reduce import dependency, and enhance profitability amid global refining margin pressures.