The Sinopec Dalian Petrochemical Xizhongdao project is scheduled to be completed and put into operation in 2026, with completion by 2029!

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I. Rectification tasks: In recent years, Dalian Petrochemical Company has experienced frequent safety accidents; relevant risk issues were identified during the first round of inspections； In accordance with **and the relevant requirements of Liaoning Province, the relocation to another location was supposed to begin by the end of 2020 and be completed by the end of 2025, but the company’s progress on this relocation has been slow. II. Rectification objectives: Complete the relocation work.
III. Rectification measures:
(1) By the end of July 2021, formulate an overall work plan for government departments regarding the relocation and construction project of PetroChina Dalian Petrochemical. Establish a special working group for the relocation of PetroChina Dalian Petrochemical, and engage a third party to conduct assessments on future land sale revenues and anticipated governance outcomes. (II) By the end of 2021, study and draft the terms of a cooperation agreement, with the aim of facilitating the signing of a comprehensive strategic cooperation agreement between government departments and CNPC Group that includes the Dalian Petrochemical Relocation and Construction project. (III) By the end of 2022, make active efforts to secure support from **relevant ministries and commissions in order to advance the approval processes for the Dalian Petrochemical relocation project. (IV) By the end of 2023, in line with the supporting conditions required for the implementation of the integrated refining and chemical project, construction of such supporting facilities will be carried out in a timely manner depending on the progress of CNPC’s Dalian petrochemical project. (5) In 2023, a low-sulfur oil processing line with a capacity of 4.5 million tons per year will be shut down; in 2024, a sulfur-containing oil processing line with a capacity of 6 million tons per year will be shut down. By 2025, the sulfur-containing crude oil processing line with a capacity of 10 million tons per year, built after the existing plant facilities were shut down, will also be shut down. IV. Key Measures Taken for Rectification and Achievements In accordance with the requirements set out in the \"Liaoning Province Plan for Rectifying Issues Identified during Central Government Environmental Protection Inspections,\" Dalian immediately established a task force dedicated to promoting the high-quality development of the city’s petrochemical industry. CNPC Dalian Petrochemical Company was included in this task force, and the deputy mayor in charge of administrative affairs was appointed as its leader. Relevant officials from municipal departments served as members of the task force, working together to oversee the relocation process of Dalian Petrochemical Company. The task force office actively formulates annual work tasks and implementation plans, and diligently studies various key work items. In June 2021, the \"Work Plan for Promoting the Construction of the Relocation Project of CNPC Dalian Petrochemical Company\" was issued, outlining four key tasks: establishing a working mechanism, signing cooperation agreements, approving the relocation construction project, and expanding the chemical industry chain. In July 2021, a preliminary estimate of the conceptual costs for pollution remediation at the old site of Dalian Petrochemical Company was completed. In February 2022, the final assessment of future land sale revenues from the old factory site was completed. On November 20, 2022, the Dalian municipal government and CNPC Group signed a Framework Agreement on the Cooperation for the Relocation and Renovation of the Dalian Petrochemical Project. In November 2022, the municipal government issued the \"Notice on Accelerating the Preliminary Work for the Relocation and Renovation Project of Dalian Petrochemical\", specifying the responsibilities of various units to speed up the implementation of relevant tasks. Special work instructions are issued for key matters; the municipal task force regularly monitors the progress of various tasks and reports to the city government’s leaders, making every effort to advance the relocation and renovation of Dalian Petrochemical. Following intensive discussions between the municipal task force and CNPC as well as Dalian Petrochemical Company, and with the city’s party and government leaders holding several special meetings to urge \"every effort\" to support the relocation of Dalian Petrochemical and to ensure the high-quality development of the new project, progress has now been made in the relocation and renovation of this facility. First, documents such as the \"Cooperation Framework Agreement for the Relocation and Renovation Project of Dalian Petrochemical\" and the \"Compensation Agreement for the Relocation and Renovation of Dalian Petrochemical\" have seen consensus reached and have been signed. On November 20, 2022, in the presence of the former main leaders of the provincial party committee and the chairman of CNPC, the municipal government and CNPC signed a Framework Agreement on Cooperation for the Relocation and Renovation Project of Dalian Petrochemical. On December 22, 2023, the municipal government and CNPC Group signed the \"Memorandum on the Discussions Regarding the Compensation Agreement and Related Documents for the Relocation and Renovation of Dalian Petrochemical Plant\". On March 16, 2024, the Municipal Urban Investment Group, the Land Development Group, and CNPC Group officially signed the Compensation Agreement for the Relocation and Renovation of Dalian Petrochemical. Second, the preliminary work for the Dalian Petrochemical (Xizhongdao) integrated refining and chemical project is being accelerated. In accordance with the Cooperative Framework Agreement for the Relocation and Renovation Project of Dalian Petrochemical, signed on November 20, 2022, CNPC Group will build a new integrated refining and chemical complex at Dalian Petrochemical (Xizhongdao). Based on multiple rounds of feasibility studies, the scale of the refining and chemical integration project has been set at 10 million tons of oil refining capacity and 1.2 million tons of ethylene production, with a total investment of around 57.1 billion yuan. In June 2025, the project’s feasibility study was approved at the group’s meeting for major projects; in July it passed the reviews by the group’s Party leadership committee and the board of directors. At the beginning of September, approval was granted by CNPC. Current efforts include converting the project from a reserve status to a formal planning stage as well as preparing the environmental impact assessment report. The construction of the main part of the project is scheduled to begin in the first half of 2026, with a construction period of 3 years. Third, the old Dalian Petrochemical plant area was shut down safely and in an orderly manner. In accordance with the requirements of the \"Notice on Formulating Rectification Measures\" (Liaohuan Duzigai Ban Fa [2021] No. 29), in August 2021, Dalian Petrochemical Company formulated the \"Dalian Petrochemical Company’s Plan for Shutdown and Withdrawal from Operations for 2023–2025\" as required. In accordance with the above plan, Dalian Petrochemical, taking into account the safety conditions of various units, phased out the three crude oil processing lines with capacities of 6 million tons per year, 4.5 million tons per year, and 10 million tons per year on an annual basis. To date, all 3 crude oil processing lines have been shut down, and the disposal of materials from the production facilities has been completed. The above rectification measures are made public. If you have any objections, please submit them in writing or by phone to the Office of the Provincial Leading Group for Ecological and Environmental Protection Inspection and Rectification. For mail sent by post, the postmark is taken as the reference; for direct delivery, the date of delivery is taken as the reference. Public display period: December 16, 2025, to December 22, 2025. Department in charge of handling requests: Office of the Provincial Leading Group for Ecological and Environmental Protection Inspection and Rectification. Phone number: 024-62788397. Mailing address: No. 30, Shuangyuan Road, Hunnan District, Shenyang