Chinese Refiners Delay 500,000-BPD Projects as Iran War Disrupts Hormuz Oil Flows
Updated
Updated · Reuters · Jun 8
Chinese Refiners Delay 500,000-BPD Projects as Iran War Disrupts Hormuz Oil Flows
1 articles · Updated · Reuters · Jun 8
Summary
Two Chinese refinery projects totaling 500,000 bpd have been delayed, cutting expected new demand from the world’s top crude importer as Middle East supply disruptions unsettle feedstock availability.
HAPCO pushed startup of its 300,000-bpd Panjin refinery to September or early October from May or June, while PetroChina’s planned restart of a 200,000-bpd Dalian crude unit was postponed indefinitely.
Higher crude costs and China’s fuel price caps have turned refining margins negative, and weaker fuel demand from rising EV use has added pressure on operators.
China’s refinery throughput fell to about 13.3 million bpd in April — roughly 69% of capacity and the lowest since August 2022 — underscoring the sector’s slowdown.
India still expects about 526,000 bpd of refining additions this year, highlighting a regional contrast as Asia remains the main source of new capacity.