Reuters: China’s CNPC Plans to Restart Idled Refinery to Process Russian Oil

China’s state-owned oil company CNPC plans to restart a unit at its Dalian refinery just months after it was shut, as the company expects to generate substantial profits by processing discounted Russian crude, Reuters reported, citing 12 sources.

CNPC intends to restart the 200,000-barrels-per-day crude distillation unit, with three sources saying the plant could resume operations around mid-year.

Several sources said the unexpected move would allow the company to resume purchases of seaborne Russian crude, which were suspended in October 2025 following U.S. sanctions on Rosneft and Lukoil.

One source said the refinery is likely to resume buying spot Russian cargoes within a few months, while another said it plans to process about 120,000–140,000 barrels per day.

Once reopened, the plant will also be able to process other crude grades considered sufficiently cheap.

CNPC subsidiary PetroChina shut its 410,000-bpd Dalian petrochemical complex in July 2025 as part of plans to build a $10 billion refining and petrochemical project on neighboring Changxing Island.

The Dalian refinery was previously PetroChina’s largest and most profitable plant and one of the biggest processors of Russia’s ESPO Blend crude delivered via the East Siberia–Pacific Ocean pipeline. Sources said it remains unclear whether the refinery will process pipeline-supplied crude or only seaborne cargoes.

• According to preliminary estimates by Reuters, Russia's oil and gas revenues could to fall by 46% in January due to lower oil prices and a stronger ruble.
• Prices for Russia's flagship Urals crude oil for delivery to China fell to an unprecedented low.