2026-10-17
- PetroChina plans to restart part of its Dalian refinery, shut in full since July 2025, in November 2026, Hydrocarbon Processing reported on October 16, 2026.
- The unit to be restarted is a 200,000 b/d (barrels per day) crude distillation unit (CDU), with monthly crude feed of 500,000 to 600,000 metric tons, or about 122,000 to 146,000 b/d.
- The restart was originally planned for mid-2026 but was delayed after the US-Israeli war with Iran disrupted crude supplies and raised prices, according to the report.
- A $10 billion replacement refinery complex is under construction on a nearby island with startup now expected in March 2029, when the Dalian refinery is expected to cease operations.
PetroChina plans to restart part of the Dalian Petrochemical refinery, which it shut down entirely in July 2025, in November 2026, according to Hydrocarbon Processing. The publication reported the plan on October 16, 2026, citing several industry and trade sources. The unit to be restarted is a single 200,000 b/d crude distillation unit (CDU), which is less than half of the refinery’s nominal capacity of 410,000 b/d.
The restart is notable because it brings part of a large refinery that was closed under Beijing’s push to cut excess refining capacity back into operation. According to the report, PetroChina and PipeChina did not respond to requests for comment.
The Dalian refinery is operated by PetroChina, the listed arm of China National Petroleum Corporation (CNPC), and has a nominal capacity of 410,000 b/d. It was once described as the group’s largest and most profitable refinery and was one of China’s largest processors of Russian ESPO blend crude. The entire refinery was shut in July 2025 as part of Beijing’s drive to cut excess refining capacity and focus on higher-value petrochemicals.
The unit being restarted is one 200,000 b/d CDU. The restart is planned for November 2026. It was originally planned for mid-2026, but the report says it was delayed because the US-Israeli war with Iran disrupted crude supplies and raised prices. Monthly crude feed is reported at 500,000 to 600,000 metric tons, equivalent to about 122,000 to 146,000 b/d, or roughly 61% to 73% of the unit’s capacity. That volume equals about 2% of China’s seaborne crude imports in September, and the restart would raise crude imports by 122,000 to 146,000 b/d.
Crude sourcing is described in some detail. In the initial stage all crude will be imported, with shipments from South America and the Middle East expected the week after the article was written. Russian crude is to be supplied later by pipeline. On September 8, PipeChina issued a tender to restore 8.4 million metric tons per year (about 168,000 b/d) of transport capacity on the pipeline linking Dalian’s Xingang port to the refinery. The pipeline is designed mainly for seaborne shipments. The tender document expected operations to resume in December, so the November restart plan is earlier than that.
The longer-term plan is also reported. A $10 billion new refinery complex is under construction on a nearby island. Startup was previously expected in mid-2028, but the September 8 PipeChina tender gives March 2029, and the Dalian refinery is expected to cease operations at that point.
Numbers
- Refinery: Dalian Petrochemical, nominal capacity of 410,000 b/d, shut in full in July 2025
- Unit to restart: one 200,000 b/d crude distillation unit, with restart planned for November 2026 (originally mid-2026)
- Monthly crude feed: 500,000 to 600,000 metric tons, about 122,000 to 146,000 b/d, or 61% to 73% of the unit’s capacity
- Share of China’s seaborne crude imports: about 2% on a September basis
- Increase in crude imports: 122,000 to 146,000 b/d
- PipeChina tender (September 8, 2026): restoration of 8.4 million metric tons per year (about 168,000 b/d) of transport capacity on the Xingang port–refinery pipeline
- Initial crude: all imported (South America and the Middle East), with Russian crude supplied later by pipeline
- New refinery complex: $10 billion, under construction on a nearby island, startup March 2029 (previously expected mid-2028)
Timeline
- 2025-07 — Entire Dalian Petrochemical refinery shut
- Mid-2026 — Original restart target (delayed by the Iran war)
- 2026-09-08 — PipeChina tender to restore 8.4 million tons per year of pipeline capacity from Xingang port to the refinery (expected operations to resume in December)
- 2026-10-16 — Hydrocarbon Processing reports the plan to restart part of the refinery in November
- Late 2026-10 — Initial crude shipments from South America and the Middle East expected (the week after the article was written)
- 2026-11 — Planned restart of the 200,000 b/d CDU
- 2029-03 — Replacement refinery complex expected to start up, with Dalian refinery operations expected to end
Note
A crude distillation unit (CDU) heats crude oil and separates it by boiling point into naphtha, kerosene, diesel and other fractions, and it is the first processing step in a refinery. PipeChina is China’s national oil and gas pipeline operator.