PetroChina launches $1.2 bln ethane-to-ethylene project in Xinjiang

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A PetroChina petrol station is pictured in Beijing, China, March 21, 2016. REUTERS/Kim Kyung-Hoon/File Photo

BEIJING, Aug 31 (Reuters) - PetroChina (601857.SS), Asia's largest oil and gas producer, said on Tuesday its Dushanzi Petrochemical Company has launched an 8.04 billion yuan ($1.24 billion) ethane-fed ethylene project in China's far western region of Xinjiang.

The project is designed to produce 600,000 tonnes of ethylene, 300,000 tonnes of high-density polyethylene and 300,000 tonnes of full-density polyethylene per year.

The project will help reduce dependence on foreign ethylene processing technology, PetroChina said in a statement.

The ethane to be used as feedstock in the project will be separated from natural gas produced from the Tarim oilfield.

Dushanzi Petrochemical now has an annual ethylene capacity of 2 million tonnes. In early August, PetroChina finished trial operation of an 800,000 tonnes-per-annum ethane-to-ethylene plant in Shaanxi province.

($1 = 6.4687 Chinese yuan)

Reporting by Muyu Xu and Dominique Patton; Editing by Subhranshu Sahu

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