SINGAPORE: PetroChina is preparing to restart a mothballed crude oil processing unit in northeast China next month to replenish domestic fuel stocks until a replacement refinery is constructed, according to multiple industry and trade sources.

In July 2025, PetroChina, the listed arm of CNPC, shuttered the entire 410,000-barrel-per-day (bpd) Dalian Petrochemical refinery, once the group's largest and most profitable, in line with Beijing's efforts to cut excess refining capacity and focus on producing higher value petrochemicals.

PetroChina previously planned to restart a 200,000 bpd crude distillation unit (CDU) at Dalian in mid-2026, but the plan was held back as the US-Israeli war with Iran disrupted crude supplies and sent prices surging.