PetroChina to downsize in northern China, shut its Dalian refinery in 2025, sources say
PetroChina plans to shut its Dalian refinery, with the capacity of 410,000 barrels per day, or 3 per cent of China’s total refinery output, around mid-2025, sources said
The planned shutdown of the entire 410,000 barrels per day (bpd) Dalian Petrochemical plant, representing 3 per cent of the country’s total refinery output, comes as Chinese refiners struggle with overcapacity and weakened fuel demand from slowing economic growth and the electrification of its car fleet.
PetroChina has already shut in 210,000 bpd, or about half of the plant’s total crude processing capacity at its Dalian Petrochemical subsidiary, said the sources, declining to be named as the matter is not public.
PetroChina did not immediately respond to a request for comment.
The closures are part of a long-proposed plan pushed by Dalian to relocate the refinery, which is in a densely populated area near downtown, after several deadly accidents including a major oil spill in 2010, an explosion in 2013 and a fire in 2017, the sources said.
Under a framework agreement announced by Dalian authorities in November 2022, CNPC, parent of PetroChina, agreed to build a new 70-billion yuan (US$9.84 billion) refinery and chemical complex on Changxing island, about two hours’ drive from downtown Dalian.
