China Maintains Near-Record Refinery Runs While Delaying 500,000 bpd of New Capacity Amid Middle East Supply Disruptions

Chinese refiners have delayed or indefinitely postponed projects representing 500,000 barrels per day of refining capacity because of disrupted crude supplies through the Strait of Hormuz, Reuters reported on Monday. The postponements affect a 300,000-bpd refinery under development by Huajin Aramco Petrochemical Co.

in northeastern China and a planned 200,000-bpd restart at PetroChina’s Dalian refinery.

Both projects had been scheduled to add to China’s refining capacity this year. Startup of the Huajin facility has been pushed back by several months, with Energy Aspects now projecting operations to begin in the third quarter instead of the second. The refinery ranks among the largest refining investments currently under development in China.

Saudi Aramco is expected to supply up to 210,000 barrels per day of crude feedstock to the Huajin refinery under a long-term agreement. PetroChina has indefinitely postponed plans to restart a 200,000-bpd crude processing unit at its Dalian refinery, though the company has not confirmed the delay. The unit had been shut as part of a broader restructuring effort.

39 million bpd in February, according to Kpler data. 5 million bpd, leaving refiners processing more than twice the volume of recent imports. The gap has been filled by inventories accumulated before the conflict.

For more than a year, Chinese buyers purchased discounted barrels from Russia and Iran while building strategic and commercial stockpiles. Analysts estimate those inventories reached roughly 1 billion barrels before the war. China has continued expanding crude storage capacity and was still adding new facilities before hostilities erupted.