China’s state-owned PetroChina is advancing a new integrated refinery-petrochemical complex on Changxingdao Island in Dalian, Liaoning Province, with a total investment of approximately 68.5 billion yuan (about $9.56 billion), it is reported. The project is also intended to gradually replace an existing aging refinery within the city of Dalian.
The project centers on a new crude refining facility with a capacity of 200,000 barrels per day (b/d) and an ethylene unit with an annual capacity of 1.4 million tons, and is expected to include downstream units for polyethylene (PE), polypropylene (PP), and POE (Polyolefin Elastomer), it is reported. The existing 410,000 b/d refinery within the city of Dalian is scheduled to be phased out as the new complex comes online. The new complex is being built within a coastal industrial zone on Changxingdao, aiming to establish an integrated production system spanning crude unloading, refining, and petrochemicals, it is reported. No specific process licensor was disclosed in the original reporting, so licensor information is not available.
The Chinese government continues to pursue a policy of relocating and consolidating aging urban refining facilities into large coastal integrated complexes, and the Dalian project is seen as part of this broader refining-petrochemical restructuring trend. Some analysis also attributes the relocation of urban refining facilities to tightening environmental regulations and rising safety management requirements, it is reported.
Implications for Korea’s Industry
As China continues to invest in large integrated refinery-petrochemical complexes, concerns over oversupply of commodity petrochemical products such as ethylene, PE, and PP are growing, suggesting that Korean industry should continue pursuing a shift toward higher-value-added products.
Whether specific construction start and completion schedules, as well as the timing of the existing refinery’s closure, are finalized going forward is cited as a point to watch.