China has become the dominant force in the energy industry, particularly in the Asian market, although recent developments point to international investments, marking the global force that is the Chinese energy industry. Now, the Chinese government has announced that it has greenlit a major refinery and another petrochemical complex for a 2026 launch, bringing in the new year in style. With the global energy industry facing a tough 2025, dominated by the impact of sanctions on Russia and all its various energy companies, 2026 is looking slightly more hopeful.
PetroChina has made a Final Investment Decision on a new refinery in Dalian
The Chinese energy major has secretly made the Final Investment Decision on a new multi-billion-dollar refinery and petrochemical complex in the Northeast of the nation, near Dalian. The new complex will comprise a 200,000-barrel-per-day crude oil refinery, operating in tandem with a massive 1.4 million metric ton per year ethylene complex.
Additionally, the new complex will also include a variety of downstream petrochemical units, such as polyethylene, polyolefin elastomer, and polypropylene. The complex will become just the latest in astonishing energy projects that the Chinese market has undertaken in recent years, with the site for the complex being located around a two-hour drive from downtown Dalian, on Changxing Island.
Construction on the initial infrastructure has already commenced
Insiders familiar with the project have noted that the company has already begun construction on the site, such as a jetty and pipelines. PetroChina’s largest domestic refinery in China, which has been collecting dust since being shut down, marks a larger, more concerning trend in the energy market, as many refiners struggle with overcapacity and weakened fuel demand. Not to worry, as the company has announced the new refinery, not that far away.
Saudi Aramco and its Chinese partners have also launched a new refinery and petrochemical project
Saudi state-owned Aramco has put any geopolitical concerns aside and has announced plans to launch a new refinery and petrochemical production complex in the Northeast of the nation, in a region called Panjin city. The investment is the second major boost to the local market made by Aramco, with the expected costs for the new facility estimated at $10 billion.
Joint venture Huajin Aramco Petrochemical Company (HAPCO) will construct and operate the new plant, which will house a 300,000 barrels per day (bpd) refinery alongside a cracker with an annual production capacity of 2 million tons of paraxylene and 1.65 million tons of ethylene. Aramco will provide the crude oil as feedstock for the plant.
The cooperative nature of the global energy industry is on full display in China
The new complex will become the cornerstone of China’s energy future, alongside the new facility in Dalian. The Panjin city complex will be majority-owned by HAPCO, with Saudi Aramco holding 30% and Xincheng Industrial Group holding 19%. With Russia diversifying its energy portfolio amid the new wave of sanctions, China’s role in the global midstream sector will grow in the new year.
Global cooperative projects have become all too common in the modern energy industry
China’s astonishing plans for the new year would not be possible if it were not for Aramco’s influence. The geopolitical tensions surrounding China at the moment mean that many nations are wary of doing business with Beijing; however, that has not stopped the nation from moving forward with its plans for the new year. As other nations develop pioneering new projects that connect the energy industry in new ways, China is aiming to develop its energy infrastructure well beyond expectations with its new energy complexes. With the new year only a few short hours away, at least we won’t have to wait long to see operations begin.
