As the conflict in the Middle East weakens supply chains, China aims to increase its production of ethylene in its first fully green production chain.

PetroChina announced that its subsidiary Dushanzi Petrochemical began operating a new ethylene production line in the Xinjiang Uygur autonomous region on Thursday. The expansion adds 1.2 million tons to the company’s annual production capacity, raising its total capacity in the region to 3 million tons.

The project is aimed at becoming the largest ethylene production hub in central and western China, according to South China Morning Post. Most of the industry has been positioned along the coast up until now, away from the key resources. The project will allow China to produce a key industrial chemical while supporting national energy security and carbon reduction goals.

The expansion would “reshape the long-standing east-west geographic imbalance of domestic ethylene capacity, while enhancing the resilience and security of energy and chemical supply chains,” South China Morning Post reports. And it would also demonstrate China’s commitment to reducing the industry’s environmental impact.

Reaching for gold

Known as “industrial gold” in China, ethylene is an important petroleum-based chemical used in many industrial products, including plastics, synthetic fibers, and advanced materials.