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First Anniversary of PetroChina Guangdong Petrochemical Company | Credit: CNPC Facebook Page (5 July 2024) 

PetroChina Guangdong Petrochemical is a major integrated refining and petrochemical complex located in the Dananhai Petrochemical Industrial Zone, Jieyang City, Guangdong Province, southern China. The complex represents PetroChina's largest single-investment project with a total investment of CNY 65.43 billion (approximately USD 9.2 billion) and is designated as Jieyang City's "No. 1 Project".

Corporate Structure and Ownership

The project was originally conceived in 2011 as a joint venture between China National Petroleum Corporation (CNPC, holding 60%) and Petróleos de Venezuela SA (PDVSA, holding 40%) under the formal name China-Venezuela Guangdong Petrochemical Co Ltd. The joint venture received environmental approval in 2011 and construction officially commenced in 2018. However, PDVSA withdrew from the equity partnership prior to commissioning due to deteriorating financial conditions, though this withdrawal was not related to U.S. sanctions imposed in 2019. Despite PDVSA's exit as an equity partner, the complex remains wholly owned and operated by PetroChina, a subsidiary of CNPC.

Crude Oil Feedstock

The complex was initially designed to process exclusively Venezuelan heavy crude oil. Following the revised plan and PDVSA's withdrawal, the facility processes a diversified slate of heavy crude grades from multiple sources including Venezuela (Merey crude), Iraq, and Iran. The complex received its first Venezuelan crude cargo in March 2024, marking the resumption of Venezuelan oil imports to this facility. The plant is designed to process overweight and low-quality crude oil under all operating conditions, improving flexibility in crude oil sourcing.

Production and Market Position

The complex is positioned as one of four major petroleum refining bases supported by Guangdong Province's 14th Five-Year Plan for the Manufacturing Industry. For 2023, the facility targeted processing 15 million tonnes of crude oil and producing 12.54 million tonnes of products, with approximately 65% consisting of synthetic resins (including ABS) supplied to the Pearl River Delta region. The facility produces over 20 types of oil products and more than 200 varieties of chemical products annually.
 

The project addresses China's strategic need to reduce dependence on imported ethylene and high-end chemical raw materials while diversifying crude oil import channels. Products primarily serve the household appliances, electronics, and manufacturing industries in South China.