Changxing Island National Economic and Technological Development Zone | Credit: Invest in China

Project Overview: PetroChina has approved a final investment decision (FID) for a new multi-billion-dollar refinery and petrochemical complex in northeast China's Dalian. The project
represents a strategic replacement of the company's aging 410,000 bpd Dalian Petrochemical refinery, which completed its closure in June 2025.

Operator and Ownership: PetroChina (through its parent company CNPC) will be the sole operator of the new refinery complex. The project is being developed as a direct replacement for the closed Dalian Petrochemical Corp facility, maintaining state ownership under the PetroChina umbrella.

Location Details: The new complex will be constructed on Changxing Island, approximately two hours' drive from downtown Dalian in Liaoning Province. The specific location is part of the Dalian Changxing Island (Xizhong Island) Petrochemical Industrial Base, which is being developed as a world-class green petrochemical industrial hub.

Project Capacity and Configuration: The approved complex comprises:
🔵 Crude oil refinery: 200,000 barrels per day (bpd) capacity; This represents a significant downsizing from the original 410,000 bpd capacity of the closed Dalian facility, reflecting China's shift from fuel production to higher-value petrochemicals. The refinery will incorporate modern hydroprocessing units for producing both fuel products and petrochemical feedstocks.
🔵 Ethylene complex: 1.4 million metric tonnes per year capacity. The ethylene complex will likely employ steam cracking technology for olefin production.
🔵 Downstream units: Polyethylene, polypropylene, and polyolefin elastomer production

Investment and Cost: The project carries an estimated total cost of 68.5 billion yuan ($9.56 billion). This substantial investment reflects the complex's integrated refining and petrochemical capabilities, along with the necessary infrastructure development on Changxing Island.

Construction Timeline and Start-up Schedule: PetroChina has already begun preliminary infrastructure construction, including jetty and pipeline installation. The construction phase is expected to span multiple years given the project's complexity. Based on similar projects and the scale involved, commercial operations are anticipated to start in the late 2020s to early 2030s. The timeline reflects the comprehensive scope of work required for both the refinery and integrated petrochemical facilities, along with supporting infrastructure on Changxing Island.

Information sources: PR Newswire, Reuters, Hyrocarbon Processing, Inspection Engineering, Tank Terminals, Oil Price, Iran Oil & Gas, Discovery Alert, Insights Global, Channel News Asia.

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