PetroChina Tarim Phase II Ethylene Project: 1.2 Million Tonnes Capacity with Carbon Capture in Xinjiang
chemanalyst.comPetroChina has started up its Tarim Phase II ethylene project in Xinjiang, adding 1.2 million metric tonnes per year of ethylene capacity. The facility is part of a 25.66 billion yuan investment and includes the world's first carbon emission recycling demonstration base for ethylene cracking furnaces, using CO2 capture and utilization technology to cut emissions by roughly 1.37 million tonnes annually. The project also integrates renewable power and sits in a national-level zero-carbon industrial park. The new cracker supports downstream production of HDPE, polypropylene, EVA, and synthetic rubber for packaging, automotive, and construction sectors. It reduces western China's dependence on eastern coastal supply chains and improves export access to Central Asian markets. Equipment localization reached 99 percent, reflecting domestic manufacturing progress. The added supply may put moderate downward pressure on regional ethylene and derivative prices over the medium term as downstream demand absorbs new volumes.