CNOOC's USD 2.7 Billion Refinery Upgrade: A Game-Changer for China’s Energy Sector in 2025

By Shubhendra Anand , 28 May, 2025

After a USD 2.74 billion investment, State-owned China National Offshore Oil Company (CNOOC) is poised to open a substantially improved refinery and petrochemicals complex later this year.  Situated on Daxie Island in Ningbo, the plant will greatly increase CNOOC's refining capacity, therefore confirming its place in China's energy scene in 2025.

 With a 120,000 barrel-per- day (bpd) oil unit, the rebuilt complex will have 50 percent more total crude processing capacity 240,000 bpd.  As CNOOC improves its processing capacity, this growth is projected to propel more crude oil imports later this year.  With this development, the company's overall oil processing capacity is expected to reach around 1 million bpd, therefore attaining a significant turning point in its activities in 2025.

Beginning operations in mid-2025, the complex will include modern processing facilities comprising two polypropylene plants with a capacity of 450,000 tons annually, a hydrocracker, a continuous reformer, and a catalytic cracker.  These purchases will enable CNOOC to increase its competitiveness in China's expanding petrochemical industry in 2025 and broaden its product offers.

 CNOOC is aggressively growing its downstream activities even if its core business still is oil and gas exploration and production.  Part of its larger plan to profit from China's growing need for chemicals and refined petroleum products is the modernized complex.  Increasing its refining and petrochemical capacity would help CNOOC to confirm its long-term development plan and market impact in 2025.

 In a related development, a joint venture between Shell and CNOOC Petrochemicals Investment LTD, Shell Petrochemicals Company Limited (CSPC), has revealed a significant extension of their petrochemical plant at Daya Bay, Huizhou.  The project will construct a third ethylene cracker with a projected annual capacity of 1.6 million tons, therefore augmenting China's domestic supply of vital petrochemicals in 2025.

 Along with adding a new factory generating 320,000 tons of high-performance specialty chemicals including polycarbonates and carbonate solvents, the CSPC expansion will provide in sectors like electronics, cars, and packaging, these components are very vital.  By 2028, the development should be finished, therefore confirming China's leadership in petrochemicals worldwide in 2025.

By means of these significant expenditures, both CNOOC and Shell's joint venture are preparing for a transforming year, thus supporting China's energy and petrochemical sectors for steady expansion and innovation in 2025.

CNOOC's USD 2.7 Billion Refinery Upgrade: A Game-Changer for China’s Energy Sector in 2025