Wedoany.com Report-Mar 6, China National Offshore Oil Company is set to launch an upgraded refinery complex on Daxie Island in Ningbo, following a substantial investment of 20 billion Yuan ($2.7 billion). This expansion signifies a strategic move to bolster China’s refining and petrochemical capabilities.
The Daxie refinery expansion comes at a time when China is focusing on upgrading its refining sector to meet growing domestic demand for petrochemicals, particularly in the production of plastics, synthetic fibers, and other industrial chemicals.
Overview of the Expansion
CNOOC’s ambitious expansion will significantly enhance the Daxie refinery’s output. The plant’s refining capacity will increase by 50%, reaching 240,000 barrels per day. Key additions to the refinery include:
A 120,000 bpd crude unit to process heavier crude grades more efficiently.
A 3.2 million metric tons per year (tpy) catalytic cracker, crucial for producing high-value gasoline and petrochemical feedstocks.
A 2 million tpy hydrocracker, designed to improve fuel quality and maximize diesel output.
A 2.4 million tpy continuous reformer, essential for increasing the production of high-octane gasoline and aromatics.
Two polypropylene units, each with a capacity of 450,000 tpy, to expand the production of polymer-based products.
These upgrades will significantly enhance the refinery’s ability to produce higher-quality fuels and petrochemicals, supporting China’s long-term industrial growth while aligning with global emissions standards. CNOOC’s investment in state-of-the-art refining technology also reflects China’s broader energy transition goals, as the country seeks to optimize refining efficiency while minimizing environmental impact.
Strategic Importance of the Upgrade
China’s petrochemical industry is rapidly evolving, and CNOOC’s refinery expansion is a testament to the country’s commitment to securing a competitive edge in this sector. By increasing its refining capacity and petrochemical output, China aims to reduce reliance on foreign imports while enhancing its ability to supply critical raw materials for various manufacturing industries.
The refinery’s expansion will significantly contribute to China’s industrial output by supplying feedstocks for plastic production, synthetic fibers, and other essential chemicals. These materials are integral to sectors such as automotive manufacturing, construction, and consumer goods, reinforcing China’s industrial supply chain resilience.
The expansion of the Daxie refinery will have far-reaching implications for China’s energy sector. As global energy markets fluctuate and geopolitical uncertainties persist, China’s move to strengthen its domestic refining capabilities positions it as a more self-reliant player in the international energy landscape.
