CNPC Dalian Petrochemical Relocation and Upgrading Project to Add 10 Million Tonnes/Year Refining Capacity

China National Petroleum Corporation (CNPC)'s Dalian Petrochemical Relocation and Upgrading Project is scheduled to commence in 2026, and will add 10 million tonnes per year of refining capacity. On 18 November, Dalian Petrochemical Company completed material and solvent disposal operations with the final shipment of cyclobutanesulphone solvent leaving the site. All substances were disposed of safely and sustainably, and in full regulatory compliance, securing the smooth transition of the enterprise and ensuring the preservation of state-owned assets.

The relocation and reconstruction of such a large-scale refining and petrochemical enterprise is unprecedented in China, and the accompanying large-scale material disposal effort is the first of its kind, posing significant risks and challenges without established precedents. In April 2025, CNPC formed a 'Material Exit Coordination Working Group' involving multiple refining and petrochemical enterprises across the group. In May, 14 enterprises conducted an on-site coordination visit to Dalian.

Through these initiatives, Dalian Petrochemical achieved its goals of 'zero safety incidents, zero environmental violations, and zero inventory backlog', meeting material disposal targets on schedule. The effort also pioneered safe, green, and efficient disposal practices during large-scale shutdowns in China's refining and petrochemical sector, contributing extensive practical experience in resource coordination and emergency response enhancement.

Project Overview

• Project Name: CNPC Dalian Petrochemical Branch (Xizhongdao) Refining and Petrochemical Integration Project

• Nature: New construction

• Location: Xizhongdao Petrochemical Industrial Park, Changxing Island Economic and Technological Development Zone, Dalian

• Scope: Construction of a 10-million-tonne/year refinery, a 1.2-million-tonne/year ethylene plant, downstream facilities and supporting storage, transportation, utility, and auxiliary infrastructure. The project includes the refining and petrochemical plant area, wharf facilities, off-site pipelines and external power supply installations.

Downstream units (based on tender information):

• 1# 400,000 tonnes/year PP unit

• 1# 450,000 tonnes/year FDPE unit

• 2# 450,000 tonnes/year FDPE unit

• 300,000 tonnes/year LDPE unit

• 200,000 tonnes/year POE unit

• 300,000 tonnes/year CHPPO unit

Project Updates

• 12 November 2025: Wu Kai, Executive Director and Party Secretary of CNPC Dalian Petrochemical Company, visited the Management Committee of Changxing Island Economic and Technological Development Zone to discuss acceleration of the project. Both sides focused on addressing key priorities and bottlenecks to expedite implementation.

• 27 August 2025: First public notice issued for the environmental impact assessment of land reclamation works.

• 30 June 2025: Shutdown of the 10-million-tonne/year atmospheric and vacuum distillation unit marked the cessation of production at the legacy plant site and completion of phased withdrawal.

• 16 November 2024: Pre-feasibility study report received formal approval from CNPC.

• End of March 2024: RMB 68.5 billion project agreement officially signed.

• March 2024: Dalian City and CNPC Group reached agreement on the relocation timeline and new plant construction plan for Changxing Island (West Zhongdao). Preparations for the new project are accelerating, guided by 'differentiation, high-end positioning, and specialisation'. A 10-million-tonne-per-year refinery and 1.4-million-tonne-per-year ethylene facility will be constructed alongside downstream new materials projects to extend the industrial chain. The project aims to build a green, low-carbon and highly efficient integrated refining and petrochemical complex, advancing industrial transformation and layout optimisation for Dalian's petrochemical sector.

• 20 November 2022: Signing ceremony held between the Dalian Municipal Government and CNPC for the cooperative framework agreement on the relocation and upgrading project.