The BDO plant will have a capacity of 200,000 tpy, according to the report. The project will also include plants for acetylene and formaldehyde.
The capacities of the latter two plants were not disclosed.
Overall, the project will cost 3.8 billion yuan ($605 million), the report says.
Located in the Changshou Economic-Technological Development Area, the project is expected to be completed by the end of 2015.
The BDO project is a milestone for Chongqing in becoming a global natural gas industrial base, Chongqing mayor Huang Qifan said at the signing ceremony.