Spanning an area of 4.2 square kilometers in Pudong New Area, towering process towers of Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. (hereinafter referred to as Gaoqiao Petrochemical) stand in grandeur. As China’s first cross-industry and cross-department super-large economic consortium founded in November 1981, Gaoqiao Petrochemical has grown into a vital energy production base of Shanghai.
At its establishment, Gaoqiao Petrochemical integrated seven factories and one research institute under different ministries in the Gaoqiao area, pioneering the joint restructuring of state-owned enterprises. Currently, the company operates 75 production units. Its comprehensive annual crude oil processing capacity has risen from the initial 4.3 million tons to approximately 13 million tons, while the annual physical output of chemical products has increased from 65,000 tons to 500,000 tons.
The origin of Gaoqiao Petrochemical dates back to the early days of the People’s Republic of China. Project "01", an expansion project of its predecessor Shanghai Refinery completed in 1953, marked China’s first self-designed and self-manufactured refining project after the founding of New China.
The site witnessed numerous "firsts" in China’s chemical industry: the first model man-made fiber plant, the first petroleum gas cracking ethylene production unit, the first 10,000-ton annual ethylene tubular cracking furnace... For these milestones, Gaoqiao Petrochemical is hailed as "the cradle of New China’s chemical industry".
Corporate Development: Four Transformations from Cross-industry Pilot to Benchmark Urban Chemical Plant
Since its founding in 1981, Gaoqiao Petrochemical has closely aligned with national strategies and Shanghai’s urban development demands. It has undergone four pivotal transformations, evolving from a traditional refinery into a safe, eco-friendly and leading urban chemical enterprise.
Phase 1 (1981–2000): Cross-industry Consortium Pilot to Lay Refining & Chemical Foundation (1st Transformation)
Background
In 1981, the State Council approved the integration of 8 enterprises and institutions (including Shanghai Refinery and Gaoqiao Chemical Plant) under 5 central ministries and 4 local bureaus in Gaoqiao into China’s first super-large cross-industry economic consortium. It broke the segmented administrative system under the planned economy and served as a reform testbed for the petrochemical sector.
Core Achievements
At integration, the site had an annual crude oil processing capacity of 4.3 million tons and chemical output of 65,000 tons, forming an initial fuel-chemical integrated layout. In the 1990s, advanced foreign technologies were introduced to renovate the primary fluid catalytic cracking unit, lifting gasoline output by 20% and establishing the firm as Shanghai’s major oil product supplier.
Phase 2 (2001–2010): Integrated Refining-Chemical Upgrading with Leading Fuel Quality (2nd Transformation)
Core Strategy
Backed by Sinopec’s resource integration, the company advanced coordinated refining and chemical industrial chains, focusing on fuel quality upgrading and capacity expansion of basic chemical feedstocks.
Key Milestones
2002: The world’s first MIP process unit with proprietary intellectual property rights (catalytic cracking technology for high isoparaffin yield) was put into operation at Gaoqiao Petrochemical. It broke foreign monopoly on refining technologies and pioneered domestic low-olefin green gasoline, laying groundwork for National IV and V fuel standards upgrades. 2007–2010: RMB 1.2 billion was invested to build 3 advanced units, enabling early production of National IV standard gasoline and diesel to support energy conservation and emission reduction during the Shanghai World Expo. 2010: Annual crude processing capacity exceeded 10 million tons, making it one of Sinopec’s four major lube base oil production bases supplying the Yangtze River Delta.
Phase 3 (2011–2020): Green & Low-carbon Transition to Integrate with Urban Ecosystem (3rd Transformation)
Driving Forces
Shanghai’s urban functional upgrade from an industrial hub to a global science and innovation center plus the dual carbon targets forced traditional refineries to cut pollution and integrate into urban ecological development.
Core Initiatives & Outcomes
Environmental hardware upgrades: It became the first transaction participant in Shanghai’s carbon market in 2013; a grid VOCs monitoring system was completed in 2015; colored smoke plume governance for catalytic units finished in 2020, slashing total discharge of major pollutants by over 60% compared with 2010. Green product launch: Low-sulfur marine fuel (sulfur content <0.5%) launched in 2018 accounted for over 55% of Sinopec’s direct supply to Shanghai Port, boosting the construction of Shanghai International Shipping Center. After coal consumption renovation of self-owned power plants in 2020, annual carbon emissions were cut by 50,000 tons, ranking among top domestic power plants of its kind. Urban coordination: Regular public open days were launched, receiving nearly 40,000 visitors to eliminate public stereotypes that chemical plants equal pollution, earning recognition as Shanghai’s industrial tourism demonstration site.
Phase 4 (2021–Present): Dual-drive of Special Oil Transition & New Materials for Second Venture (4th Transformation)
Core Strategy
Responding to Shanghai’s "3+6" modern industrial system covering advanced materials and new energy, the enterprise launched the "Second Venture" initiative, shifting development logic from output scale orientation to high value-added growth and fostering a second growth curve.
Key Breakthroughs
2021: Refined China’s first full-life-cycle carbon-neutral crude oil, completed carbon settlement in the inaugural compliance period of national carbon market, emerging as a low-carbon benchmark of the industry. 2022–2025 Special oil products: Developed customized lithium battery oil (99.9% purity, heavy metal-free), No.66 fully refined paraffin wax filling the domestic gap of high-end wax, and odorless asphalt adopted for viaducts at Hongqiao Airport to reduce construction odor. High-end chemicals: ABS renovation delivered low-odor, low-speckle products matching new energy vehicle interior requirements; low-cis polybutadiene rubber captured over 70% domestic market share in PS modification. New energy layout: A 500Nm³/h fuel cell hydrogen purification unit (99.998% purity) was built to supply high-purity hydrogen for Shanghai fuel cell vehicles. Low-sulfur petroleum coke (sulfur <3%) with monthly output of 3,000 tons serves as raw material for lithium battery anode materials.
Core Technology System: Four Tech Sectors Driving High-end & Green Transformation
Gaoqiao Petrochemical’s technological R&D targets practical industrial demands. It tackles bottleneck technologies in traditional refining while developing cutting-edge new energy and new material solutions, forming four integrated tech systems: distinctive refining technologies, high-end chemical technologies, green low-carbon technologies and intelligent enabling technologies.
Distinctive Refining Technologies: Breakthroughs from Fuel-focused to Special Oil-focused Production
Centered on the special oil transition strategy, differentiated technologies strengthen competitiveness in specialty oil products.
High-end Chemical Technologies: Break Bottlenecks of Premium Materials with Specialized, Refined, Innovative & Unique Products
Focusing on ABS, styrene-butadiene rubber, phenol and acetone, process renovation and new product development penetrate high-end sectors including new energy vehicles and electronics.
- ABS Resin Technology Main bulk polymerization process differs from traditional emulsion polymerization, with monomer residue below 50ppm and odor grade ≤3 (industry average: Grade 5), perfectly fitting low-odor demand of new energy vehicle interiors. New products launched in 2025 include ultra-matte ABS (gloss <10%) and low-speckle ABS (speckle count <5 pcs/m²), applied in Tesla interiors and premium electronic housings with bulk exports to Europe and America.
- Styrene-butadiene Rubber Technology Low-cis polybutadiene rubber adopts low-temperature emulsion polymerization with Mooney viscosity control accuracy ±2, holding over 70% domestic market share in PS modification and exporting to the Middle East. Solution-polymerized styrene-butadiene rubber cuts rolling resistance and heat generation by 15% for green tires, with annual capacity lifted to 80,000 tons in 2025.
- Phenol & Acetone Technology Joint venture with Mitsui of Japan adopts cumene process with 99.99% product purity and 8% lower energy consumption than industry average. Annual capacity hits 200,000 tons, making it a core feedstock supplier of epoxy resin and PC materials in East China.
Green & Low-carbon Technologies: Full-life-cycle Carbon Reduction beyond End-of-pipe Treatment
Aligned with Shanghai’s dual carbon strategy, a three-dimensional tech system covering energy saving, resource recycling and new energy utilization delivers tangible results.
- Energy-saving Renovation Tech 2023 power plant coal consumption upgrade deployed high-efficiency boilers and waste heat recovery systems, slashing coal consumption per kWh by 16.6%, saving 20,000 tons standard coal and cutting 50,000 tons carbon emissions annually. Low-NOx combustion tech for heating furnaces lowers NOx emission concentration below 50mg/m³, halving emissions to meet Shanghai’s strictest environmental standards.
- Resource Recycling Tech Deep wastewater reuse rate exceeds 90%, conserving 20 million tons fresh water each year. Waste gas treatment of wastewater plants reaches 98% VOC removal efficiency. Permeable asphalt technology developed in 2022 achieves 20% void ratio after modification, used on Hongqiao Airport viaducts to support sponge city construction, with plans to cover 80% of Shanghai built-up areas by 2030.
- New Energy Utilization Tech Distributed PV: 20,000 m² solar panels installed on parking lots and office rooftops in 2023 generate 1.94 million kWh green power annually for 1,500 tons carbon reduction. Hydrogen purification & storage: 500Nm³/h fuel cell hydrogen purification unit with matching hydrogen refueling stations provides stable hydrogen supply for Shanghai fuel cell demonstration lines.
- Carbon Footprint Management It is among China’s first enterprises to calculate carbon footprints of petrochemical products, establishing full-life-cycle carbon models for lube oil and jet fuel. Optimized raw materials and processes cut jet fuel carbon footprint by 8% versus 2020 levels.
Intelligent Enabling Technologies: Full-process Digitalization Boost Customized & Refined Operation
Intelligent technologies cover production, logistics and sales to support efficient operation of the urban factory. Intelligent production control: Upgraded dispatching center enables real-time data monitoring and early warning for all 75 units; predictive maintenance cuts equipment downtime by 30%. Customized production support: Digital twin plus dynamic parameter adjustment shortens lead time of low-melting paraffin wax from industrial average 15 days to 7 days for small-batch high-value orders. Production-marketing collaboration platform: Two product engineers with technical and market expertise form a closed loop of demand collection, production adjustment and delivery tracking. Custom ABS orders accounted for 40% of total ABS output in 2025.
Future Layout: Four Strategic Directions in the 15th Five-Year Plan to Build Premium Specialized Chemical Leader
Following Shanghai’s 15th Five-Year Plan targets of high-end industrial leadership and green transition, Gaoqiao Petrochemical defines four core themes: transformation, quality improvement, industrial agglomeration and eco-friendliness. Pushing forward its Second Venture, it targets becoming a world-leading benchmark urban chemical plant by 2030.
Industrial Upgrade: Dual Drive of Special Oil Transition & New Materials to Foster Second Growth Curve
- Leading Specialty Oil Business Expand heavy-duty lube oil capacity to 150,000 tons/year by 2027; launch a 50,000-ton/year food & pharmaceutical grade white oil unit in 2026; lift rubber protective wax capacity for premium tires to 80,000 tons/year by 2028. Implement customized one-product-one-policy service, including high-purity lithium battery separator oil for new energy battery manufacturers and low-freezing jet fuel (freezing point < -60℃) for aviation clients.
- Premium Chemical Material Optimization Complete Phase II bulk ABS project in 2026 to raise annual capacity from 200,000 tons to 300,000 tons, developing ABS-carbon fiber composite modified materials to cut new energy vehicle weight by 15%. Extend styrene-butadiene rubber industrial chain: build upstream butadiene refining units and develop rubber-resin blends for high-end seals and shock-absorbing materials, lifting differentiated product proportion to 60% by 2027.
- New Energy Material Expansion Hydrogen sector: Upgrade fuel cell hydrogen purification unit capacity to 2000Nm³/h in 2026, integrating hydrogen production, purification and refueling along Shanghai Chemical Industry Park Hydrogen Corridor. Lithium battery materials: Launch a 100,000-ton/year low-sulfur petroleum coke unit in 2027 to form a local industrial chain of petroleum coke-anode materials.
Base Layout: Dual-platform Operation of Old Gaoqiao Site & Shanghai Chemical Industry Park to Achieve Capacity Cut, Quality Upgrade & Industrial Agglomeration
- Old Gaoqiao Site: Build characteristic lube & paraffin base Cut 1 million tons/year low-efficiency fuel production capacity while strengthening safety and environmental performance of the urban factory. Upgrade lube oil facilities with molecular distillation technology to raise high-end lube oil proportion from 30% to 50%. Construct green open space: transform 100,000 m² idle industrial land into coastal carbon sink forest by 2026 to realize integrated production, ecology and living.
- Shanghai Chemical Industry Park: Build integrated new material base embedded in north bank of Hangzhou Bay high-end chemical cluster Launch phosgene-bisphenol A-PC industrial chain in phases 2026–2028 (120,000 tons/year bisphenol A, 80,000 tons/year PC) to fill the gap of high-end PC supply in East China. Cooperate with BASF and Sinopec Shanghai Petrochemical to build an ecosystem of mutual raw material supply and collaborative waste treatment, slashing supply chain costs by 15%.
Green & Low-carbon Development: Carbon Peak Target & Deep Urban Ecological Integration
- Carbon Peak Initiatives Cut coal consumption by 50% by 2027 and reduce carbon emissions per unit product by 40% versus 2020 by 2030. Upgrade waste heat power generation of catalytic cracking units to add 30 million kWh green power annually. Develop circular economy: construct a 200,000-ton/year CO₂ capture and utilization unit in 2028 to produce dimethyl carbonate (DMC) and realize carbon resource recovery.
- Deepened Urban Coordination Boost supply of odorless and permeable asphalt for Shanghai municipal roads to a 30% share by 2027 to advance sponge city construction. Upgrade public open days to industrial science popularization bases, receiving over 100,000 visitors by 2030 as a benchmark transparent chemical plant.
Intelligent Empowerment: Digital Renovation & Tech R&D to Support High-end Transition
- Full-process Digitalization Launch Digital Gaoqiao platform covering production, logistics and sales in 2026. Production side: AI-assisted process optimization lifts ABS product qualification rate to 99.5%. Logistics side: Unmanned warehouses and intelligent transport dispatching shorten raw material lead time by 20%.
- Key Technology Research Jointly develop technologies with Shanghai Jiao Tong University, East China University of Science and Technology in three directions: Specialty lube formulas for low-friction wind turbine bearing lubrication; Low-carbon processes substituting steam heating with electric heating to cut unit carbon emissions; High-pressure gaseous hydrogen storage containers to lift hydrogen transport efficiency by 30%.
Conclusion: Transformation Insights from Gaoqiao Petrochemical’s Urban Factory Model
The development track and future layout of Gaoqiao Petrochemical revolve around three core logic: clear positioning, leveraging urban strengths and solving practical industrial demands. From cross-industry integration in 1981 to the current dual strategy of special oil transition and new materials, the enterprise always centers on serving Shanghai and fulfilling national strategies. Its R&D roadmap avoids blind high-end pursuit, focusing on differentiated problem-solving: MIP technology optimizes gasoline olefin content, low-sulfur marine fuel underpins the shipping center, and permeable asphalt facilitates sponge city construction. Aligned with the 15th Five-Year Plan goals of high-end and green development, future plans rely on industrial agglomeration, technological breakthroughs and digital intelligence. By 2030, Gaoqiao Petrochemical will complete its profound transformation from a traditional refinery to a high-tech enterprise, replicable as a universal Gaoqiao Model for domestic urban chemical manufacturers.
