China’s Sinopec has launched construction work to upgrade its integrated refining and petrochemical project in Xinjiang,the company announced on Saturday.Sinopec,recognized as the world’s largest refiner by capacity,said the initiative is aimed at expanding processing capability and enhancing chemical production.

According to the plan,the Tahe refining and chemical project will see its crude oil refining capacity raised from 5 million tons per year to 8.5 million tons per year.The upgrade also includes the addition of 16 refining and chemical units.These cover a 2.4-million-ton-per-year hydrocracking unit,a 1.5-million-ton continuous catalytic reforming unit,an 800,000-ton ethylene cracking unit,and an 800,000-ton aromatics complex.With these facilities,Sinopec aims to boost production of refined fuels and high-value petrochemical products such as ethylene and paraxylene.

Sinopec stated that the construction is scheduled for completion by 2029.Once operational,the upgraded project is projected to contribute about 20.2 billion yuan($2.8 billion)in additional annual output value,assuming a crude oil price of$60 per barrel.This increase will further strengthen the company’s refining and petrochemical integration strategy in western China.

The company also highlighted its investment in resource development.In its 2025 interim results,Sinopec reported that 27.6 billion yuan($3.9 billion),representing 63%of its first-half capital expenditure,was allocated to exploration and development.These efforts focused mainly on building capacity in Tahe,Xinjiang,and Jiyang in Fujian province.

Sinopec emphasized that the expansion in Xinjiang forms part of its broader plan to enhance refining and petrochemical output while also supporting crude oil production capacity in key regions.The project is designed to optimize resource utilization and increase economic returns from both upstream and downstream operations.

With this large-scale upgrade,Sinopec expects to advance its integrated operations and strengthen its position in the refining and chemical sectors.The company noted that the Tahe project will contribute significantly to regional industrial growth and provide a foundation for long-term production stability and efficiency improvements.

Overall,the upgrade in Xinjiang demonstrates Sinopec’s commitment to expanding its refining and chemical capabilities,aligning capital investment with strategic resource development.The company projects that,once completed,the expanded Tahe facility will be a key driver of economic value and operational growth in its refining and petrochemical business.