SRMED
Englishعربي
Englishعربي
Chinese refiners have delayed two major projects that were supposed to start up this year after disruptions to Middle Eastern crude shipments through the Strait of Hormuz, according to Reuters and informed sources cited by Asharq Al-Awsat. The postponements affect a combined 500,000 barrels per day of refining capacity and reflect growing uncertainty over feedstock supplies during the war involving Iran.
One of the projects is Huajin Aramco Petrochemical Co’s 300,000 bpd refinery in Panjin, a joint venture involving Saudi Aramco, China’s Norinco Group and Panjin Xincheng Industrial Group. Reuters reported that startup has been pushed back from May or June to September or early October, with consultancy Energy Aspects saying it now expects the refinery to begin in the latter part of the third quarter because of supply uncertainty tied to the Hormuz disruption.
The second project is a 200,000 bpd crude unit at PetroChina’s Dalian refinery, whose planned restart has been postponed indefinitely, according to three sources familiar with the matter. Together, the delays suggest that even large Chinese refiners are being forced to adjust schedules as tensions in the Middle East affect the flow of oil into the world’s biggest crude-importing country.
The issue matters beyond the individual plants because China’s refiners are already facing weaker fuel demand at home. Reuters reported that the delays could limit additional Chinese oil demand and put pressure on global crude prices, especially if refiners remain cautious about adding new capacity while supply routes remain vulnerable.
The Strait of Hormuz is a critical chokepoint for oil shipments from the Gulf, and any disruption there can quickly ripple through Asian energy markets. For Chinese companies, the postponements underline how geopolitical risks can interrupt investment plans even when projects are near completion.
What happens next will depend on whether Middle East supply conditions stabilize enough for refiners to resume their original timelines. For now, according to the sources cited by Reuters, the projects remain delayed rather than canceled, leaving open the possibility that both facilities will come online later than planned once feedstock concerns ease.