October 02, 2025

Petrochemical industry in Xinjiang competes for "big"

At the Xinjiang Uygur Autonomous Region Economic and Trade Work Conference, it was revealed that Xinjiang will significantly accelerate the exploration and development of oil and natural gas resources during the "11th Five-Year Plan" period. The goal is to transform Xinjiang into China's largest oil and gas production base and a critical energy safety corridor for the nation. In addition, the region aims to expand the oil and gas industry chain as much as possible, focusing on deepening the processing of downstream products. According to the plan, Xinjiang expects to achieve double-digit growth in investment, oil and gas equivalents, and the annual increase in crude oil processing volume during the 11th Five-Year Plan. The region will also actively utilize oil and gas resources from neighboring countries to ensure stable growth in both domestic production and imports. By 2010, the total oil and gas equivalent is expected to reach 60 million tons, with the petrochemical industry contributing over 70% of the added value of large-scale industries in the region. To further enhance the local oil and gas sector, Xinjiang will increase the depth and scope of resource processing, extend the industry chain, and strengthen the development of downstream products. It will encourage collaboration between local and external enterprises, including major companies and social capital, to jointly develop the downstream oil and gas processing industry. The focus will be on building four key petrochemical bases: Dushanzi-Keramayi, Urumqi, Nanjiang, and Turpan. Projects will include large-scale petroleum refining, ethylene, aromatics, PVC, nitrogen fertilizers, methanol processing, natural gas power generation, civil gas supply, pipeline construction, and coal liquefaction. The chemical industry will also promote the development of calcium carbide-based PVC, radial tires, high-efficiency compound fertilizers, and inorganic salt products. In addition, Xinjiang plans to build five major coal-based industrial zones, including Hami Dananhu, Gudongbei Tashan, Kuqa-Baicheng, Yili, and Fukang, aiming to integrate coal, power, coking, and chemical industries. This will create a comprehensive industrial system with synergistic development. By leveraging the scale and influence of major petrochemical projects, Xinjiang seeks to quickly establish a modern, large-scale petroleum and petrochemical industrial cluster, positioning itself as a vital chemical and energy hub in western China.

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