PetroChina is about to close its largest domestic oil refinery around mid-2025, sources stated, the country’s first essential closure at a state-run plant and a part of a long-mooted task to replace it with a smaller facility at a new site.
The enterprise will close the remaining portion of the Dalian Petrochemical plant, with a total capacity of 410,000 barrels in line with day (bpd), that it was still operating in the northeastern Chinese city, stated five assets with knowledge of the matter. It previously closed approximately 210,000 bpd of ability starting in October 2023, said the assets, declining to be named as the matter is not public.
PetroChina did not respond to a request for comment.
Dalian represents 3% of China’s refinery capacity and closing the site must reduce into the country’s world-leading crude imports. The closure follows refiners’ struggle with overcapacity and weakened fuel call for from slowing economic growth and the electrification of the country’s car fleet.
The closures also align with Beijing’s policy to cap the size of the industry to curb greenhouse gas emissions and manage enterprise overcapacity.
Shutting the plant is a part of an extended-proposed plan driven via Dalian to relocate the refinery, that is in a densely populated location near downtown, after numerous deadly accidents which include a prime oil spill in 2010, an explosion in 2013 and a fire in 2017, the sources stated.
PetroChina will re-allocate crude oil from Dalian to other subsidiary plants in northeast China, consisting of WEPEC, which is also in the city, and close by Jinzhou, elevating operation ranges there to compensate for Dalian’s cuts, said of the resources.
