As of January 23, 2026, consolidation and transformation in Shandong’s local refining sector have accelerated. The 40 million tpy Yulong Island integrated refining project is proceeding with “build large, replace small” capacity swaps by consolidating 11 local refineries. Meanwhile, Jingbo Petrochemical focuses on the field of high-end specialty oils and lubricants; Hengyuan Co., Ltd. shut down traditional refining units to shift toward high-end carbon materials such as needle coke. Shandong Refining & Energy also increased registered capital to 3 billion yuan to support Dongming’s financing. Additionally, projects such as Dongying Haike Ruilin’s 150,000 tpy cyclohexanone and 100,000 tpy caprolactam, and Qicheng Petrochemical’s 200,000 tpy isooctane are advancing rapidly, promoting the industry toward high-end, green development and the gradual phase-out of backward capacity. (Source: Zhuochuang Information, Dongying Petrochemical Industry Development Communique)
