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Multiple industry and trade sources told Reuters that PetroChina is preparing to restart a mothballed crude oil processing unit at its Dalian refinery in northeast China in November. The restart is intended to replenish domestic fuel stocks until construction of a replacement refinery is completed. The development comes as China has seen declining crude and fuel inventories after reduced imports and refining runs caused by supply disruptions.
PetroChina fully shuttered the 410,000-barrel-per-day Dalian petrochemical refinery in July 2025 to align with Beijing’s efforts to reduce surplus refining capacity and emphasize higher-value petrochemical output, Reuters reported. The plant had previously served as the group’s largest and most profitable refining asset. A plan to bring a 200,000-bpd crude distillation unit back online in mid-2026 was delayed after the US-Israeli conflict with Iran disrupted crude supplies and drove prices higher.
In recent months the plan has regained momentum as the supply issues have led to lower Chinese crude imports and refinery throughput, according to sources cited by Reuters. The restart will allow the company to process additional volumes while the new facility on a nearby island remains under construction. Two traders briefed on the plans indicated that delays to the new complex have also factored into the decision to revive the older unit.
The new refinery and petrochemical complex, estimated to cost $10 billion, is now expected to begin operations in March 2029, industry sources told Reuters. Restarting the old plant provides a stopgap measure using existing infrastructure. This approach enables PetroChina to maintain supply without waiting for the full project completion.
Sources with knowledge of the matter said the restarted unit is expected to process between 500,000 and 600,000 metric tons of crude per month. That volume equates to 122,000 to 146,000 barrels per day, representing roughly 2 percent of China’s seaborne crude imports in September. The operating rate would be about 61 percent to 73 percent of the unit’s full capacity, the sources added.
A trade source briefed on the restart process told Reuters that the refinery is scheduled to receive crude cargoes from South America and the Middle East next week in preparation for the November startup. The move forms part of broader efforts to stabilize fuel supplies amid ongoing regional geopolitical challenges. PetroChina has not issued an official comment on the plans.
