PetroChina, one of Asia’s largest oil and gas producers, has approved a massive $9.6 billion project to revamp its Dalian refinery complex, marking a strategic shift toward high-end petrochemical production and cleaner energy processing.
The overhaul is aimed at transforming the aging coastal facility into a world-class integrated refinery and petrochemical hub, enabling it to process a wider range of crude oil types while producing more value-added chemicals. Once completed, the Dalian project will significantly enhance China’s domestic refining capacity and reduce its reliance on chemical imports.
The investment is part of PetroChina’s broader long-term plan to upgrade outdated facilities and align with the nation’s dual goals of economic modernization and carbon neutrality. By focusing on efficiency, emissions control, and higher-yield chemical production, the company is responding to both market demand and regulatory pressure. 
Located in northeast China, the Dalian refinery has been a vital component of the country’s energy infrastructure for decades. The revamp will include advanced units for catalytic cracking, hydrocracking, and ethylene production, boosting the site’s total annual refining output and expanding its petrochemical portfolio.
The move also comes at a time when China is adjusting its energy strategy to meet evolving global conditions—balancing energy security, industrial growth, and environmental sustainability. Analysts say the Dalian upgrade will not only increase PetroChina’s global competitiveness but also strengthen the country’s grip on regional petrochemical markets.
Construction is expected to begin later this year, with phased completion projected over the next several years.
