PetroChina has made a final investment decision to build a new integrated refinery and petrochemical complex on Changxing Island, northeastern China – a strategic move confirmed by company and industry sources, although not formally announced by the firm.
The CNY 68.5 billion ($9.56 billion) development encompasses a 200,000 bpd crude refinery, a 1.4 million tonne/year ethylene facility, and a suite of downstream units producing polyethylene, polypropylene, and polyolefin elastomers. Infrastructure work, such as a jetty and pipeline installation, has already commenced on the coastal site, approximately two hours from downtown Dalian.
This move follows the recent closure of PetroChina’s 410,000 bpd Dalian Petrochemical refinery, which had long been the company’s largest domestic refining asset. The shutdown, in progress since mid-2025, reflects capacity rationalisation amid cooling domestic fuel demand and increasing electric vehicle adoption. PetroChina aims to fully draw down fuel inventory by the end of August 2025.
The new facility represents a major strategic realignment from fuel-focused processing to high-value petrochemicals, seeking to address refinery overcapacity and evolving market dynamics. With an estimated investment of nearly $10 billion, the project is among the largest downstream expansions in PetroChina’s recent history and reflects broader trends in China’s petrochemical integration strategy.
