Heavy! The latest progress of Dalian Petrochemical's 10 million-ton refining project, adding 1.4 million tons of ethylene production capacity

petroChina Dalian Petrochemical (Xizaandao) refining and chemical integration project, as the first case of relocation and reconstruction of large-scale refining and chemical enterprises in China, is steadily advancing. The project is located in Xizaandao Petrochemical Industrial Park, Changxing Island Economic and Technological Development Zone, Dalian City, with a total investment of 68.5 billion yuan. Construction is planned to start in 2026.

Core capacity scale: The project will build 10 million tons/year refining unit, 1.2 million tons/year ethylene unit and supporting downstream chemical plant, supporting the construction of storage and transportation, public works, auxiliary facilities, as well as docks, off-plant pipelines and power supply infrastructure. The downstream product matrix covers the high-end polyolefin field, including 1 set of 400000-ton/year PP unit, 2 sets of 450000-ton/year FDPE unit, 1 set of 300000-ton/year LDPE unit, 1 set of 200000-ton/year polyolefin elastomer (POE) unit and 1 set of 300000-ton/year CHPPO unit.

The project is planned according to the development idea of "differentiation, high-end and characteristic", aiming to create a green, low-carbon and efficient new refining and chemical integration benchmark, promote the transformation of Dalian petrochemical industry to green, high-end and intelligent, and optimize the layout of regional petrochemical industry.

on June 30, 2025, with the shutdown of the 10 million-ton/year normal decompression distillation unit, the old Dalian Petrochemical plant was completely shut down and withdrawn. Since then, the industry problem of material disposal for large refining enterprises has been successfully solved.

Disposal scale and challenges: large-scale material and solvent disposal in the domestic refining industry is the first time, there is no mature experience to learn from. In April 2025, PetroChina took the lead in setting up a "material exit coordination working group" to unite a number of refining and chemical enterprises in the group to work together. In May, 14 enterprises were organized to connect on the spot to establish a cooperative disposal mechanism.

Results and Value: As of November 18, with the last car of sulfolane solvent leaving the factory, the material and solvent disposal work was successfully completed, achieving the goal of "zero safety accidents, zero environmental violations and zero inventory backlog" and ensuring the preservation of state-owned assets. This practice has created a precedent for the safe, green and efficient disposal of large-scale shutdown materials by domestic refining and chemical enterprises, and has accumulated valuable experience for the industry to optimize the overall planning of resources and improve the emergency disposal capacity.

review of key nodes:

• november 2022: Dalian Municipal Government and China National Petroleum Corporation signed a cooperation framework agreement on relocation and renovation projects
• march 2024: The two parties met in Beijing to reach an agreement on the relocation time limit and the construction of the new factory area, and the total investment agreement of 68.5 billion yuan was formally signed.
• November 2024: Project Pre-feasibility Study Report Approved by China National Petroleum Corporation
• june 2025: Total shutdown of the old plant
• august 2025: Environmental Impact Assessment of Reclamation Project First Publicity

latest developments: On November 12, 2025, Dalian Petrochemical Executive Director and Party Secretary Wu Kai led a team to the Changxing Island Economic Development Zone Management Committee to conduct work consultations on accelerating the project, focusing on the current stage of key work and difficult blocking points accurate docking, to promote the early landing of the project.

the project will add 10 million tons/year refining capacity, especially 1.4 million tons/year ethylene and downstream new chemical materials "chain extension" project, which will significantly enhance the competitiveness of the regional petrochemical industry. The layout of high-end polyolefin products such as POE is in line with the growth trend of downstream demand such as new energy and high-end manufacturing, and injects new momentum into the petrochemical supply chain in Northeast Asia. For chemical traders and supply chain practitioners, it is necessary to pay close attention to the progress of project construction and the pace of product delivery, and lay out relevant market opportunities in advance.