Nov 29, 2022 -- Screenshot from Dalian Refinery video | Youtube

PetroChina is set to shut down the final operational crude unit at its largest refinery in northern China, the Dalian Petrochemical Company, by June 30, 2025. This move marks the first complete closure of a state-run refinery in China, according to industry sources.

The closure involves the No.1 crude unit, which has a capacity of 200,000 barrels per day. Following this, the refinery’s secondary processing units are scheduled to be phased out in July. The Dalian plant, with a total capacity of 410,000 barrels per day, accounts for nearly 3% of China's total refining capacity and primarily processes Russian ESPO blend crude from Siberian fields.

This decision aligns with PetroChina’s long-term strategy to relocate and replace the Dalian facility with a smaller, more modern plant at a new location. The shutdown process began in late 2023, and the company will start reducing its crude oil and feedstock inventories this month, aiming to clear all product stocks by the end of August.

A spokesperson for PetroChina did not immediately respond to requests for comment. The final investment decision for the proposed new refinery complex on Changxing Island, about two hours from downtown Dalian, has yet to be made.

This development follows earlier reports confirming PetroChina’s intention to close the Dalian refinery by mid-2025 as part of broader restructuring efforts within China’s refining sector.

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