SINGAPORE: PetroChina is preparing to restart a mothballed crude oil processing unit in northeast China next month to replenish domestic fuel stocks until a replacement refinery is constructed, according to multiple industry and trade sources.
In July 2025, PetroChina, the listed arm of CNPC, shuttered the entire 410,000-barrel-per-day (bpd) Dalian Petrochemical refinery, once the group's largest and most profitable, in line with Beijing's efforts to cut excess refining capacity and focus on producing higher value petrochemicals.
PetroChina previously planned to restart a 200,000 bpd crude distillation unit (CDU) at Dalian in mid-2026, but the plan was held back as the US-Israeli war with Iran disrupted crude supplies and sent prices surging.
The plan to restart the CDU gained traction in recent months as China has faced depleted crude and fuel stocks after months of reduced crude imports and refining output because of the supply disruptions.
The monthly crude feed for the restarted CDU is planned at 500,000 to 600,000 metric tons, said one of the sources, a person with direct knowledge of the matter. That is equal to about 122,000 to 146,000 bpd, or about two per cent of China's seaborne crude imports in September, and translates to an operating rate of roughly 61 per cent to 73 per cent of total processing capacity for the unit.
The refinery is expected to receive crude shipments from South America and the Middle East next week for the restart, said one of the trade sources, who was briefed on the restart process.
Another factor behind restarting the old Dalian plant is a delay in the planned startup of a US$10 billion new refinery complex under construction on a nearby island, said two of the sources, traders who were also briefed on the company's plans. The new site was expected to start in mid-2028, they said.
The startup of the new complex is expected in March 2029, according to a September 8 tender document reviewed by Reuters from state-owned pipeline operator PipeChina seeking technical services for pipe works related to the restart of the old Dalian refinery.
PetroChina did not immediately respond to a request for comment sent by email.
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