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On January 16, it was reported that Dalian Petrochemical Company had successfully completed the decommissioning and clearing of 312 storage tanks by the end of December 2025, achieving this safely, efficiently, and in an environmentally responsible manner. The project—which involved cutting off production-related water and power supplies and removing raw materials, finished products, and equipment—was brought to a successful conclusion. 2025 marked a pivotal year for Dalian Petrochemical’s transformation and upgrading. Facing various challenges, the company’s Party Committee orchestrated a strategic, systematic approach. By implementing "seven major plans," the company ensured the smooth and orderly completion of key tasks—such as material disposal and tank decommissioning—thereby laying a solid foundation for the enterprise's transition into a new stage of development. During the intensive decommissioning campaign, the Party Committee established a dedicated task force. This team meticulously mapped out the decommissioning schedule, strictly enforced standardized operating procedures, strengthened safety supervision throughout the process, and continuously optimized cleaning technologies, ensuring the safe, high-quality, and efficient disposal of all storage tanks. The company prioritized standards to reinforce its management foundation. It formulated and issued guidelines on standardized management for mechanical tank cleaning and key safety control points for tank cleaning operations. These measures implemented standardized control across the entire workflow, systematically enhancing operational standardization and management precision. A grid-based management system was adopted, featuring specialized working groups and designated responsibility zones to ensure comprehensive safety inspections of high-risk operations. A mechanism comprising daily inspections, weekly reviews, and monthly evaluations was established to maintain safety and control throughout the operations. Technological innovation was leveraged to boost operational efficiency. The company significantly improved tank cleaning speeds through technical upgrades. In the mechanical cleaning phase, a "closed-loop self-cleaning" mode replaced the traditional "oil-based cleaning" method, greatly simplifying processes and conserving resources. For manual cleaning, the company optimized an integrated workflow—combining firewall dismantling, tank wall openings, and collaborative mechanical-manual sludge removal—which significantly reduced risks associated with confined-space work and lowered labor intensity, achieving a balance of safety, efficiency, and cost-effectiveness. Coordinated efforts by the task force helped resolve execution challenges. Adopting a problem-oriented approach, the company effectively cleared bottlenecks through timely coordination, on-site guidance, and targeted measures. To address reduced material fluidity caused by low temperatures, the company introduced a high-efficiency fuel-fired boiler heating process, ensuring continuous and stable operations. Implement a management mechanism for contractors that combines "fixed-quantity labor contracting" with "performance-based incentives" to fully mobilize personnel enthusiasm and achieve simultaneous improvements in construction efficiency and work quality.

Facing challenges such as simultaneous engineering construction and production operations, as well as increased heavy rainfall during the flood season, Dalian Petrochemical has implemented multiple measures to fortify its safety production defenses. As of July 17, the company had conducted 13 emergency drills; by combining inspections with drills, it strengthened emergency response capabilities and maintained stable production operations. Dalian Petrochemical focused on critical areas—such as utility system operations and major storage tank overhauls—to conduct targeted risk and hazard assessments. It also carried out comprehensive, multi-level, and in-depth special inspections, applying heightened control measures to ensure the stable operation of active units. To mitigate the impact of extreme weather during the flood season, the company conducted cross-disciplinary and cross-unit joint inspections to ensure the timely rectification of hazards. It strictly enforced safety accountability for major hazard installations, ensuring 100% compliance with technical safety measures and solidifying the foundation for inherent safety in oil storage and transportation areas. Addressing the complexities of high-risk engineering construction activities, Dalian Petrochemical streamlined management layers by establishing a two-tier model—comprising the "HSE Joint Committee" and "subcontracting units"—to ensure company directives reached the front line directly. Simultaneously, it formed joint teams consisting of the project owner, general contractor, and supervisor to implement grid-based on-site supervision and 24-hour monitoring. A rigorous safety point system was enforced, directly linking violation points to individual performance and job assignments, thereby effectively ensuring on-site operational safety. Dalian Petrochemical organized a series of activities, including safety warning education and the solicitation of rationalization proposals, to deeply instill safety concepts among employees. Regular multi-level competitions on safety and environmental protection skills were held; by using competitions to drive learning and performance, the company effectively enhanced its capabilities in safety risk prevention and emergency rescue.

On June 30, 2025, with the shutdown of its 10-million-ton-per-year atmospheric and vacuum distillation unit, the old plant area of ​​PetroChina Dalian Petrochemical Company ceased production entirely and exited operations. Meanwhile, preparatory work for the PetroChina Dalian Petrochemical (Xizhong Island) integrated refining and chemical project is accelerating. This milestone signifies the enterprise's accelerated transformation and upgrading as it moves toward the high end of the industrial and value chains; it also means that urban space in Dalian will be freed up, providing strong support for the creation of a vibrant coastal bay area. PetroChina Dalian Petrochemical Company is a large-scale refining and chemical enterprise integrating fuel and lubricant production. As a key production base for PetroChina in Northeast China, it has made outstanding contributions to Dalian's economic and social development. The relocation, renovation, and upgrading project represents a vivid example of deeply practicing Xi Jinping Thought on Ecological Civilization, fully and accurately implementing the new development philosophy, steadfastly advancing industrial transformation, and driving high-quality development. It is also a crucial measure to deepen cooperation between central and local governments, optimize Dalian's petrochemical industrial structure, and accelerate the city's construction of a modern industrial system. Launched in accordance with guidelines from the General Office of the State Council, this project is the first of its kind in China involving the relocation of a mega-scale refinery; it will further drive the enterprise's transformation, foster an industrial cluster spanning refining, chemicals, and new materials, and achieve differentiated, high-end, and specialized development. The provincial and municipal Party committees and governments attach great importance to this project; provincial leaders have designated it a priority project under their direct supervision, and dedicated working groups have been established at both provincial and municipal levels to ensure progress according to schedule. In line with the strategic deployment of PetroChina Group, Dalian Petrochemical Company is accelerating the transformation and upgrading of its refining and chemical operations, guided by the goals of being "green and low-carbon, innovative and efficient, and digitally intelligent and open." The company plans to build facilities on Changxing Island (Xizhong Island)—including a 10-million-ton-per-year refinery and a 1.2-million-ton-per-year ethylene unit along with downstream processing facilities—while integrating low-carbon steam generated from nuclear energy and green electricity to focus on enhancing product competitiveness. This project will transform PetroChina Dalian Petrochemical Company into an integrated refining and chemical enterprise, effectively reshaping the refining and chemical industry structure across Dalian, Liaoning Province, and the entire Northeast region. It will serve as a flagship petrochemical base for PetroChina in the Northeast, propelling the high-quality development of the company's refining and chemical operations to a new level.

To thoroughly implement the national innovation-driven development strategy and the decisions of the Group Company’s Party Leadership Group regarding scientific and technological innovation, and to accelerate the transformation and upgrading toward an integrated refining and chemical enterprise, Dalian Petrochemical Company recently established a Science and Technology Innovation Center. This marks a pivotal step for the company in strengthening technological self-reliance and building a core engine for developing "new quality productive forces," providing robust technological support for its goal of becoming a world-class, enduring integrated refining and chemical enterprise. As a key refining and chemical base in Northeast China, Dalian Petrochemical has innovation deeply embedded in its DNA. The newly established center will focus on the company's core development needs, targeting major technical areas such as refining technology upgrades, efficient utilization of aromatics, development of high-end resins and new materials, performance breakthroughs in synthetic rubber, and technologies for new energy and "dual-carbon" goals. It will conduct forward-looking research and tackle key application challenges, accelerating the transformation of scientific research findings into tangible productivity. Currently, as the first large-scale domestic refining and chemical enterprise to undergo relocation, transformation, and upgrading, Dalian Petrochemical is fully committed to a development path characterized by green low-carbon operations, digital intelligence and openness, and efficient innovation. Placing scientific and technological innovation at the core of its overall development, the company established this center as a key measure to implement its innovation-driven strategy. Operating through a model of "strategic leadership, resource integration, project-based management, and systematic operation," the center will provide a solid technical foundation for the company's core businesses to compete in the market and serve as a high-end think tank guiding long-term development. Regarding talent development, the center will serve as the core platform for implementing the strategy of strengthening the enterprise through talent. The company aims to build an innovation matrix led by technical experts and PhDs at various levels, supported by frontline technical backbone staff and outstanding young talent. By fully utilizing mechanisms for talent cultivation and utilization, the company seeks to achieve deep integration and mutual reinforcement between scientific innovation and talent development. In terms of open cooperation, the center will actively explore "collaborative alliances," joining forces with renowned universities, research institutes, and industry chain partners to create innovation consortia. By deepening the integration of industry, academia, research, and application, the center aims to accelerate breakthroughs in key core technologies and drive the industrialization of innovations. It is committed to establishing Dalian Petrochemical as a key organizer of original innovation, a reliable provider of core technologies, an active pioneer in market applications, a model leader in industrial upgrading, and a steadfast contributor to national strategic needs. The Science and Technology Innovation Center has established a strategic positioning of "supporting the present while leading the future" and is deeply involved in the preliminary work for the Dalian Petrochemical Xizhongdao Refining-Chemical Integration Project. Simultaneously, the Center is proactively laying the groundwork for the next generation of high-end fine chemicals, R&D in "dual-carbon" technologies, energy conservation and consumption optimization, and intelligent development, thereby helping the company ascend to the higher end of the industrial and value chains. As a "new engine" for innovation at Dalian Petrochemical, the Center will not only drive the company toward higher-quality development but also powerfully steer the local petrochemical industry's upgrade toward high-end, green, and intelligent operations.

In the first month of 2024, Dalian Petrochemical Company adhered to the general principle of "making progress while maintaining stability" and its "12367" strategic framework. By scientifically balancing safety with development and safety with profitability, the company united its workforce to overcome challenges with confidence, ensuring a high-quality start to the year and achieving fruitful operational results. The company successfully met its January production and sales targets, topped the profitability rankings among refining and chemical enterprises, and demonstrated a promising outlook for high-quality development through transformation and upgrading. Striving for "zero" incidents while firmly upholding the bottom line for safety and environmental protection. Dalian Petrochemical fully implemented the Group's directives regarding safety during the current period and the Spring Festival. Upholding the philosophy that "safety overrides everything else," the company focused on the goals of "zero accidents, zero pollution, and zero injuries," effectively shouldering the responsibility to prevent major risks and eliminate significant hazards through concrete action. Simultaneously, the company intensified its winter safety measures (focusing on eight key preventive areas), conducted comprehensive pre-Spring Festival safety inspections, and strengthened the management of safety instrument alarms, thereby shifting its safety defense lines further upstream. Refining operations and management to unleash high-efficiency production capacity. As the company’s transformation and upgrading progressed, maximizing the value of operating units became a critical challenge that Dalian Petrochemical had to address. Prioritizing "stability." Dalian Petrochemical maintained that "great stability yields great benefits." As units neared the end of their long-cycle operation periods, the company refined and strengthened production controls. It strictly enforced requirements for "meticulous inspections, careful monitoring, and precise operations," established a normalized supervision system for "three major disciplines," prioritized the tiered management of operational changes, and intensified risk analysis regarding unit operations and process technology. This enhanced the company's sensitivity to fluctuations in process parameters and equipment anomalies. Solutions to operational bottlenecks—such as process corrosion prevention and the optimization of water and steam systems—were successfully initiated, providing technical support for stable operations. In January, the unit stability rate reached 99.92%, laying a solid foundation for maximizing high-efficiency production capacity. Prioritizing "excellence." Dalian Petrochemical has focused on high-value products—such as jet fuel, gasoline, and paraffin—by ​​optimizing key operational parameters and fully tapping into processing potential. In January, the company produced 136,000 tons of jet fuel (226% of the volume from the same period last year) and 16,500 tons of paraffin products (112% of the previous year's figure). Responding to changes in export gasoline specifications, the company adjusted its gasoline hydrotreating units and optimized blending formulas, resulting in an additional 6,600 tons of National VI-B gasoline production. By practicing meticulous management and tapping into internal potential, the company has stimulated the intrinsic drive for quality improvement and efficiency gains. Dalian Petrochemical views value creation as the fundamental principle for high-quality development. Guided by market demands, the company has strengthened "four-precision" management (precision in planning, production, cost control, and marketing) and accelerated its transition from a purely production-oriented entity to a market-driven business. It has established an operational management system centered on financial management and conducts production optimization based on annual budgets and efficiency-enhancement measures. The company employs systems thinking to optimize the organization of crude oil intake. By holistically considering factors such as safety risks, the operation of core units (like catalytic cracking), and product mix, it optimizes the selection of crude oil varieties. It strategically purchases lower-priced crude oil and adjusts the timing of deliveries to reduce procurement costs. Adhering to a low-inventory operational philosophy, the company mitigates the risk of inventory devaluation losses. Through seamless coordination across supply, production, sales, storage, and transportation, it has steadily achieved inventory reduction targets, lowering semi-finished product inventory by 4.33%. Furthermore, the company has optimized its product mix to maximize profitability by increasing alkylation unit loads, reducing industrial gas output, and boosting propylene production. These measures have led to a higher output of high-value-added products, with the yield of high-efficiency products increasing by 22.48% year-on-year.

Wu Kai, a deputy to the National People's Congress (NPC) and Party Secretary of the Dalian Petrochemical Branch of PetroChina Company Limited, stated that adhering to a domestic demand-driven strategy, building a robust domestic market, and optimizing the implementation of policies for large-scale equipment renewal and consumer goods trade-ins (the "two new" policies) are crucial. In particular, advancing large-scale equipment renewal is significant for accelerating enterprise transformation and upgrading, enhancing the resilience and security of industrial and supply chains, ensuring national energy security, and stimulating economic growth momentum. By optimizing the implementation of these policies, enterprises can replace old, high-energy-consuming production equipment with advanced, intelligent manufacturing systems, thereby boosting production efficiency and reducing energy consumption. "We should optimize the scope of support; regarding equipment renewal, subsidies could be expanded to cover areas such as public welfare, safety, and consumer infrastructure. Additionally, subsidy standards, implementation mechanisms, and the allocation of funds for consumer goods trade-ins should be optimized," suggested Wu Kai. Wu Kai noted that, in the context of high-quality development requirements, Liaoning's petrochemical industry faces three major practical challenges in its transition from "large" to "strong." First, there is a prominent structural imbalance characterized by an overcapacity in basic refining alongside a supply shortage in high-end fine chemicals, making the transition toward the mid-to-high end of the value chain urgent. Second, the industry faces the imperative of green, low-carbon transformation due to the rigid constraints of "dual carbon" goals. Third, the accumulation of aging equipment necessitates equipment renewal and intelligent upgrades to continuously improve operational efficiency and profitability. Wu Kai believes that optimizing the implementation of the "two new" policies can accelerate the petrochemical industry's shift toward high-end, intelligent, and green operations. This not only helps enterprises reduce costs, increase efficiency, and shed the "burden" of safety risks to achieve intrinsic safety, but also provides the "confidence" needed to cultivate new quality productive forces and secure a leading position in the high-end chemical sector. Wu Kai stated that Dalian Petrochemical is currently accelerating its move toward the mid-to-high end of the value chain by focusing on innovation, efficiency, green low-carbon practices, and digital-intelligent openness, while leveraging industrial base renewal and breakthroughs in major technical equipment. When implementing large-scale equipment renewal, enterprises must consider not only the "economic calculus" of input versus output but also the "strategic calculus" of structural adjustment, transformation, and safety assurance. Only by driving the petrochemical industry chain toward greater resilience, stability, and high-end capabilities can the industry firmly safeguard national energy security and play a more significant role in serving the national energy strategy.