China National Petroleum Corporation Begins a Revolutionary Low-Carbon Ethylene Project
On July 20, 2026, China National Petroleum Corporation (CNPC) announced the launch of an unprecedented ethylene project located in Korla, in the Bayingolin Mongolian Autonomous Prefecture of Northwest China's Xinjiang Uygur Autonomous Region. This initiative, known as the Tarim 1.2 MTA Phase II Ethylene Project, is notable for being China's first full-chain green, low-carbon ethylene manufacturing undertaking. It signifies a substantial step forward in the country's efforts towards sustainable development in the petrochemical industry.
The Tarim project stands out as a demonstration of how renewable energy principles can be integrated throughout the ethylene production process. By harnessing renewable energy sources, CNPC anticipates the project will help reduce carbon emissions by a remarkable 1.37 million metric tons annually. This reduction is equivalent to the carbon sequestration potential of approximately 365,333 hectares of forest.
One of the key technological advancements introduced in this project is the utilization of renewable energy derived from photovoltaic facilities at the Tarim Oilfield. Each year, the complex receives around 1 billion kilowatt-hours of green electricity, contributing to its operational sustainability. Moreover, the project incorporates a revolutionary electric-driven system for the three main ethylene compressors, moving away from traditional thermal powering methods.
Another innovative feature is the integrated carbon capture technology that has not been previously employed in China. This system effectively recovers low-concentration carbon dioxide from the flue gas emitted by cracking furnaces, which would otherwise enter the atmosphere. The reclaimed CO₂ is then reincorporated into the production process alongside recovered hydrogen, establishing a closed-loop low-carbon industrial ecosystem. This integration enhances the synergy between green energy, carbon capture, and production of low-carbon fertilizers.
Significantly, the Tarim ethylene project showcases China's growing prowess in technological advancements. The majority of its production units—ten out of eleven—employ domestic technologies, with nine originating from CNPC itself. This remarkable feat has led to a localization rate reaching 99%. Full localization has been achieved in various facets, including the hydrogenation processes critical for producing essential materials like pyrolysis gasoline and butadiene rubber.
With the project now up and running, it is poised to meet the demand for high-end polyolefins and synthetic rubber, essential components for advanced materials, particularly in the southern region of Xinjiang. Through its completion, the project not only supports the establishment of downstream industrial clusters worth 100 billion yuan but also promotes substantial economic growth in Korla and neighboring areas. Furthermore, it promises to create numerous employment opportunities in these regions, thereby aiding in regional development efforts.
As China continues to prioritize green energy solutions and sustainable industrial practices, the Tarim Ethylene Project serves as a benchmark for future projects aiming for environmental sustainability within the petrochemical sector. This initiative is a clear indicator that China is committed to innovating its industrial practices while addressing global environmental concerns.