The NDRC and NEA issued the 15th Five-Year Plan for oil and gas. Policy mandates
adherence to a 'capacity reduction and replacement' approach for refining:
optimize existing capacity, strictly limit new additions, and promote
oil-to-chemicals, oil-to-specialties and oil-to-materials conversions to raise
refining-petrochemical concentration, precision and green standards. Authorities
will use market-based, rule-of-law measures to guide and support regional
refinery consolidation, restructuring and elimination of outdated capacity. The
plan requires stronger process decarbonization and targeted use of green power
and low-carbon hydrogen. Coastal zones will prioritize integrated
refining-chemical clusters and higher-end chemical-material output to build
globally competitive bases; central and western regions will prioritize
local-demand-aligned, resource-appropriate petrochemical projects to ensure
stable fuel supply. Competitive small- and mid-sized refineries are to focus on
specialized, high-value niche products.
