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On August 31, the light hydrocarbon fractionation unit at Daqing Refining & Chemical Company’s Chemical Branch was humming with activity and operating at full capacity. Tanker trucks lined up in an orderly fashion, fully loaded with high-value-added cyclopentane products and ready for dispatch. This thriving production scene stands in stark contrast to the company's struggles just a year and a half ago. At that time, the Chemical Branch faced severe operational challenges due to adverse factors such as adjustments to consumption tax policies on stable light hydrocarbons and a precipitous market exit for strong-alkali surfactants. The company incurred a loss of 149 million yuan in 2024; although losses were reduced by 75% in 2025, the overall situation remained unresolved. Faced with these mounting pressures, the company’s management and staff refused to sit idly by. Instead, driven by a determination to succeed and the perseverance to see the task through, they launched a comprehensive effort to overcome obstacles and break through the impasse. They delivered impressive results for the first half of this year: a total chemical product output of 246,700 tons and total profits of 11.04 million yuan, successfully turning the business around from loss to profit.Established in 2003, the chemical company had long thrived by anchoring its operations on three key industrial chains: natural gas chemicals, light hydrocarbon deep processing, and oilfield chemicals. However, in the past two years, this veteran enterprise has faced an unprecedented "cold snap" in its development. The first blow came from a sudden policy shift. On June 30, 2023, the state included stabilized light hydrocarbons in the scope of consumption tax levies, directly slashing the company's profits by 123 million yuan. Consequently, sales volume for stabilized light hydrocarbons plummeted from 124,900 tons in 2023 to 54,000 tons in 2024, drastically squeezing the profit margins of this core business. "The abrupt policy change put the company on the defensive," recalled Li Linghui. Market contraction followed close behind. Due to adjustments in the tertiary oil recovery development plan at the Daqing Oilfield, demand for strong-alkali surfactants nosedived from 61,500 tons in 2016 to just 3,700 tons in 2024. By April 2025, the product had completely exited the local Daqing Oilfield market, causing a sudden collapse of a core pillar business. "A flagship product we’d worked on for over a decade—gone just like that," lamented Liu Qingxin, manager of the Donghao branch. Internal restructuring introduced further uncertainty. In December 2023, management authority was officially transferred from Daqing Oilfield to Daqing Refining & Chemical Company, ushering in a period of major strategic adjustment. Post-restructuring, an investment "vacuum" emerged: no fixed-asset investment projects were launched from 2024 onwards. Meanwhile, production units had been in operation for an average of over 15 years, with an equipment newness coefficient of merely 0.21, leading to poor coordination and stalled progress across various operations. "Restructuring naturally breeds anxiety, and combined with persistent losses, many employees worried about their jobs and incomes," admitted Li Bo, the chemical company's deputy general manager, noting that the crisis had placed the company's very survival in jeopardy.The immense pressure of heavy losses ignited a collective determination to survive and break through the crisis. In early 2024, the chemical company’s Party committee issued a firm mandate: "reduce losses in one year, turn a profit in two, and achieve high-quality development in five." Through a breakthrough in mindset, structural reform, and targeted measures, they launched an all-out campaign to reverse losses. To break free from mental constraints, the company’s leadership team went directly to the front lines, regularly conducting "great discussions on emancipating the mind." By laying out financial figures and development challenges for all employees to see, they clearly conveyed a survival philosophy: "If the enterprise does not eliminate losses, losses will eliminate the enterprise." This shift in mindset drove organizational restructuring. Sixty-one frontline leaders were appointed to new roles, and the proportion of young and middle-aged cadres rose from 38% to 52%. Third-tier organizational units were reduced by over 60%, and a flattened management structure significantly boosted decision-making efficiency. Frontline employee wages increased by more than 7%, turning the principle of "more pay for more work" into reality. Advancing on three fronts, the company sought to maximize efficiency in every aspect of operations. On the raw material front, the company ensured its processing units never went "hungry." Dedicated teams acted like "night watchmen," keeping a close eye on pipeline network pressures and tank inventory data. In 2025, light hydrocarbon feedstock processing exceeded 320,000 tons; natural gas consumption surpassed 190 million standard cubic meters, and—for the first time—169,000 standard cubic meters of bio-natural gas were introduced. On the production front, the company aimed to extract maximum value from every ton of raw material. Cross-unit expert teams were formed to tackle and resolve over 20 core technical challenges. "After optimizing parameters, the comprehensive yield of light hydrocarbons rose by 1.66%, saving 5,460 tons of raw material annually and boosting efficiency by 21.5 million yuan," said Ming Jingxin, head of the fifth operations shift at the light hydrocarbon fractionation workshop. "We also saved over 6.72 million standard cubic meters of natural gas throughout the year." On the sales front, the focus was on securing good prices for quality products. "We used to sell whatever we produced; now, we produce whatever the market demands," says Zhang Fan, Deputy Manager of the Chemical Company’s sales branch. For instance, the company optimized its n-hexane product grades and established a mutual supply channel with Jilin Petrochemical, generating over 29 million yuan in added value. It also precisely timed price adjustments for cyclopentane, securing the best selling price seen in nearly five years. On the management front, the company implemented meticulous cost control. It innovatively introduced a "three-dimensional budget model" that quantified 28 key indicators—such as production volume, sales volume, and pricing—and assigned specific responsibilities to departments and individuals. This initiative successfully reduced maintenance and repair costs by 33% and technical service fees by 54%. While frontline production teams focused on stabilizing output and generating value, support departments proactively transformed their operations to contribute to profitability by taking on outsourced tasks such as external construction projects and vehicle maintenance services. Today, the Chemical Company fosters an environment where "everyone is a driver of profitability, and every area is a battleground for value creation."For the chemical company, turning a profit in the first half of the year represents only a milestone; the long-term goals are transformation, upgrading, and the enhancement of quality and efficiency. Building on this new starting point, the company is focusing on green transformation, industrial upgrading, and market expansion to continuously solidify its foundation for growth. The company has seized a first-mover advantage in the industry through green development. It successfully secured dual ISCC EU certification for producing green methanol and green liquid ammonia from biomethane—becoming the first domestic enterprise to achieve this qualification and effectively obtaining a "passport" for entry into the European market. The first batch of biomass-based green methanol has already been sold and loaded, establishing a complete end-to-end process covering production, sales, and export. Regarding emerging industries, the company is on the verge of industrial-scale production for a core new product: an interfacial-steric-hindrance alkali-free surfactant, which field trials have shown can boost oil recovery rates by over 19%. A demonstration project for biomethane production (with a capacity of 20 million standard cubic meters per year) has passed its preliminary review, and a feasibility study for a 30,000-ton-per-year waste plastic recycling project has been completed, marking the gradual formation of a green circular industrial ecosystem. In overseas markets, the company continues to advance its international footprint. It successfully supplied 627 tons of polymer products to the Rokan oilfield in Indonesia and is steadily progressing with a demulsifier project for the Missan oilfield in Iraq, gradually achieving the simultaneous export of products, technologies, and standards. The heavy burden of past losses once made the journey arduous for the company’s management and staff. Today, as operational quality and efficiency steadily improve, that burden is being shed bit by bit. Through repeated efforts to overcome challenges, confidence in the future has coalesced into a shared conviction: as long as the direction is right and the pace is steady, there is a bright future for development and hope for the days ahead.

On July 7, it was reported that Daqing Refining & Chemical Company shipped a total of 129,100 tons of marine fuel oil in the first half of the year—a year-on-year increase of 22.6% and a record high for the period. "We keep a close eye on market trends and fluctuations in raw material properties, focusing our efforts on precision control," said Lang Jiajun, a process engineer in the Production Technology Group of the Storage and Transportation Department. Adhering to a market-oriented and efficiency-centered approach, the company deepened dynamic analysis of key indicators and precisely adjusted the blending ratios of component oils, achieving a 100% success rate for on-spec blending on the first attempt across major production units. Notably, the product's sulfur content was consistently controlled below 0.3%, far surpassing the International Maritime Organization's (IMO) 0.5% sulfur limit for marine fuel. Leveraging scientific production coordination and rigorous quality control, the company has maintained steady marine fuel output and strong growth momentum in both production and sales. Since March, monthly shipments have grown by over 60% month-on-month, continuously enhancing delivery capabilities. Faced with rising output and an increased loading workload, the company precisely coordinated on-site operations and optimized team staffing. Dedicated process and equipment management personnel were assigned to oversee production process control and equipment maintenance, thereby solidifying the foundation for safety. By efficiently allocating vehicles and reducing loading times, the company streamlined the entire process—from oil transfer to loading and shipment—ensuring the safe and smooth dispatch of marine fuel products and continuously empowering the company's high-quality development.

On March 17, construction officially commenced on Daqing Refining & Chemical Company’s 100,000-ton/year polyacrylamide project. This initiative represents a key move by the company to align with the Group’s "biomanufacturing" special action plan and to establish itself as a "product giant" in the field of oilfield chemicals. It holds significant importance for ensuring national energy security, supporting the development of the "centennial oilfield," and driving regional economic growth. The project entails the construction of a new 80,000-ton/year acrylamide unit and a 100,000-ton/year polyacrylamide unit, alongside an upgrade to the existing ammonium sulfate unit, increasing its capacity from 15,000 to 35,000 tons per year. With nearly three decades of experience in polyacrylamide production, Daqing Refining & Chemical possesses a solid technical and industrial foundation. The company has developed a diversified portfolio of over ten product models—including anionic and cationic types—featuring proprietary intellectual property. These products have successfully entered markets at major oilfields such as Dagang, Jidong, and Xinjiang, and have even expanded internationally into the Indonesian market. This project marks a concrete step toward leveraging the company's unique strengths, optimizing its industrial layout, and consolidating its leading position in the industry. The project is reportedly scheduled for substantial completion by the end of this year. Once operational, Daqing Refining & Chemical’s polyacrylamide production capacity will surge to 250,000 tons per year. This expansion will result in a more comprehensive product range, creating a diversified production system that spans everything from basic enhanced oil recovery (EOR) agents to high-end, customized products, thereby fully meeting the varied needs of tertiary oil recovery operations.

On July 10, it was reported that Daqing Refining & Chemical Company produced nearly 17,000 tons of food-grade white oil in the first half of the year—a year-on-year increase of 12.78% and a record high for the period. Meanwhile, the company’s independently developed No. 4 specialty white oil successfully penetrated the high-end market for lithium-ion battery separators, achieving volume-based import substitution and delivering impressive results across the dual sectors of public health/consumer goods and new energy. As one of the first domestic enterprises to establish specialized production of food-grade white oil, Daqing Refining & Chemical currently produces three mainstream grades—No. 1, No. 2, and No. 4—at scale. Notably, the No. 4 grade has obtained NSF H1 certification from the United States. Thanks to its characteristics—colorless, odorless, and highly stable—the product has expanded into consumer sectors such as baking mold release agents, fruit and vegetable preservation, pharmaceutical excipients, and skincare products for mothers and infants. While consolidating its position in the consumer market, Daqing Refining & Chemical has aligned itself with national "dual carbon" goals and the rapid growth of the new energy industry, extending the quality advantages of its food-grade white oil into the high-end materials sector. "Our independently developed No. 4 specialty white oil meets all core technical specifications—such as viscosity and flash point—required for lithium-ion battery separator production. It is now being supplied in bulk to leading domestic lithium-battery enterprises, successfully breaking through international technical barriers," said Zou Li, supervisor of the production technology group at the No. 3 Refining Department. The successful domestic substitution of this critical material has not only effectively reduced the domestic lithium-battery industry's reliance on imported specialty oils but has also provided robust support for the security and self-reliance of my country's new energy supply chain.

On May 10, it was reported that the No. 2 MEK-Toluene (ketone-benzene) unit at Daqing Refining & Chemical successfully completed an oil change for its ammonia compressor, fully replacing imported specialty oil with a domestic refrigeration oil. This move not only broke the reliance on imports but also created significant opportunities for cost reduction and efficiency improvement; procurement costs dropped by 62.33% year-on-year, saving approximately 76,000 yuan per oil change for the unit. The ammonia compressor is a core piece of equipment in the production of paraffin wax at the MEK-Toluene unit. Long-term reliance on imported refrigeration oil entailed high procurement costs and long lead times, while also posing risks of supply interruptions and delayed restocking—factors that placed considerable pressure on cost control and the unit's ability to maintain stable, long-cycle operations. To resolve this challenge, the unit's technical team conducted a comprehensive review of operating parameters and working conditions. They performed multiple rounds of performance and compatibility testing on domestic oils before finally selecting a product that matched the unit's specific operational requirements. Following the initial fill and thorough circulation under no-load and low-load conditions, the unit operated consistently and smoothly; vibration levels remained stable within the "A" and "B" zones throughout. After 72 hours of operation, oil sample analyses met all standards, confirming good oil quality and a leak-free system. This successful localization of ammonia compressor oil not only significantly reduced procurement and maintenance costs but also established a comprehensive set of best practices—covering everything from technical selection and standardized procedures to trial-run monitoring. This provides a replicable and scalable model for the localization of lubricants used in similar equipment across the company.

On March 23, it was reported that the steam turbine driving the diesel hydrotreating unit at Daqing Refining & Chemical Company achieved stable operation under high-load conditions—running at 9,000 rpm with the steam valve opening stabilized at 86%—while all core operating parameters fully returned to design standards. This marks the complete success of a two-month application of on-stream steam turbine desalting technology, serving as a demonstration case for PetroChina in successfully resolving salt deposition issues without shutting down the turbine. As the core power equipment for the diesel hydrotreating unit, the steam turbine's operational status directly impacts the unit's continuous, stable production and the quality of the diesel product. Previously, severe internal salt deposition had significantly degraded equipment performance, making it difficult to meet the urgent need to increase the production of low-pour-point diesel for winter use. Resorting to a traditional shutdown for maintenance would have entailed risks of equipment freezing and production losses, thereby disrupting the company's overall production schedule. Faced with this formidable challenge, the company’s team—grounded in thorough research and scientific validation—innovatively introduced on-stream chemical desalting technology. This process involved continuously injecting a specialized cleaning agent into the steam inlet line to chemically dissolve and physically flush away the internal salt deposits. Breaking away from conventional thinking and adhering to the principles of "proactive risk control and precise execution," the technical team conducted a comprehensive risk assessment. They developed multiple contingency plans for potential issues—such as parameter anomalies triggering safety interlocks or chemical leaks—and tightened alarm thresholds for critical parameters (like shaft vibration and axial displacement) by 30% relative to original standards. Additionally, they upgraded the injection line to a hard-piped connection, significantly enhancing safety and controllability. During implementation, the team established a refined management mechanism characterized by "phased progression, dynamic optimization, and closed-loop control," scientifically dividing the cleaning operation into five stages and gradually increasing the dosage of the cleaning agent. Steam samples from the turbine inlet and outlet were analyzed every four hours to closely monitor levels of sodium and chloride ions as well as fluctuations in steam flow; real-time data enabled precise assessment of cleaning effectiveness and flexible adjustment of operational plans. Additionally, the steam sampling method was independently improved through the development of a rapid-condensation sampler, significantly enhancing analysis efficiency. Following two months of continuous, stable cleaning and monitoring, the issue of internal salt deposition in the turbine was thoroughly resolved; the equipment's power generation capacity and operational efficiency saw fundamental improvements, and all key parameters returned to normal levels. Moving forward, the company will consolidate the experience gained from this application, continue to advance research into condition monitoring and state-of-the-art maintenance technologies for critical equipment, and provide reliable technical solutions for addressing turbine salt deposition in similar facilities.

On January 16, it was reported that Daqing Refining & Chemical Company’s anionic polyacrylamide product (DQ1) was successfully injected into an Enhanced Oil Recovery (EOR) project at the Rokan oilfield in Indonesia, marking the first time the company’s polymer products have been applied in an overseas market. In its market expansion efforts, the company focused closely on market demands, continuously driving shifts in mindset, aligning R&D with needs, and seizing opportunities to establish an integrated "R&D–production–sales–service" collaborative mechanism. Thanks to superior product performance, the polymer products passed the client's laboratory evaluation on the first attempt; notably, the surfactant’s phase behavior performance at a 0.1% concentration surpassed that of competing products, leading to a successful contract for an initial 1,500 tons of product. To address the high-humidity environment and specific on-site equipment and process conditions at the Rokan oilfield, the company’s technical team provided comprehensive, customized solutions. Regarding packaging, an innovative "dual-layer moisture-proof bag" design was adopted to ensure the product remained dry—preventing caking—even during the rainy season when humidity levels reach 80% to 95%. In terms of technical support, the company dispatched professional technicians for long-term on-site assignments; they were deeply involved in every stage of the process—including water treatment, polymer preparation, and ternary mixture formulation—and collaborated with the client to analyze equipment bottlenecks. By effectively resolving issues such as solution concentration fluctuations and equipment clogging, the team earned the client's recognition through solid professional expertise and efficient service.

Daqing Refining & Chemical Company is driving the implementation of measures to enhance quality and efficiency. By focusing on key areas such as production optimization, market expansion, and cost reduction, the company is unlocking value across the board to foster high-quality development. Adhering to the core theme of high-quality development, Daqing Refining & Chemical has thoroughly implemented "Four-Refinement" management principles and vigorously advanced its three-year rolling plan for quality and efficiency improvement. The plan outlines 233 specific measures across 34 items in six major categories, aiming to "mine gold" from the finest details and achieve breakthroughs in key areas like production optimization, market expansion, and cost reduction. Since the start of 2025, the company has generated 350 million yuan in value through these improvements. Crude oil processing volume hit a 13-year high, while total processing costs for refining and chemicals dropped by 3.2% and 2.1% year-on-year, respectively, laying a solid foundation for operations in 2026.Daqing Refining & Chemical prioritizes stable operations and market demand, meticulously optimizing production organization. By dynamically analyzing industry trends, flexibly adjusting business strategies, and strengthening upstream-downstream supply chain coordination, the company ensures continuous product mix optimization and maximizes overall benefits. Adopting the philosophy that "fluctuation equals an incident," the company has comprehensively strengthened control over the entire production process. It has standardized post inspections, operational changes, and alarm management, effectively reducing unplanned shutdowns and production fluctuations to secure a stable, high-yield, and efficient operation. Through strict adherence to production plans and enhanced command coordination, the company successfully met its 2025 supply obligations for gasoline and diesel; the proportion of high-grade gasoline increased by 15.41 percentage points year-on-year, achieving both supply security and increased efficiency. Additionally, by scientifically regulating dense-phase temperatures and catalyst-to-oil ratios to optimize reaction conditions, the company increased the propylene-to-heavy-oil yield of its two fluid catalytic cracking (FCC) units by 0.31 and 0.71 percentage points, respectively.  The company accurately tracks market trends, dynamically adjusts production schedules, and seizes market opportunities to achieve a significant increase in the output of high-efficiency products. Through strategic foresight and the precise control of operational parameters and process indicators, the company has ramped up capacity for high-value-added products, ensuring continued growth in new material output in 2025. It has also scientifically managed the production of items such as paraffin wax and aviation kerosene; consequently, paraffin production hit a new record in 2025, while aviation kerosene output saw a year-on-year increase.Faced with a complex market environment, Daqing Refining & Chemical Company adheres to a market-oriented, customer-first philosophy. It proactively innovates, manages operations with meticulous care, and strives to maximize value creation. Keeping a close finger on the market pulse, the company has strengthened the synergy between production and sales and intensified marketing efforts to consolidate existing markets and explore new sectors. The marketing team actively engages with customer needs and advances polypropylene brand development; new grades such as EA5076 and EA322M have entered the trial and promotion phase, boosting the company's market share for polypropylene in the Northeast region. Committed to a service-oriented approach, the company continuously enhances its service capabilities, optimizes service models, and improves service quality. It implements differentiated service strategies—tailored to specific enterprises or stations—and creates customized solutions for individual customer requirements. In 2025, cumulative sales of new salt-resistant polymers reached 2,900 tons, successfully entering the Xinjiang Oilfield market and expanding into overseas markets. Additionally, the company proactively addressed customer packaging requirements by organizing a dedicated task force to upgrade packaging lines, thereby facilitating the entry of 25kg-specification paraffin products into the Americas market.Upholding the principle that "all costs can be reduced," Daqing Refining & Chemical Company implements a comprehensive cost control model covering all personnel, elements, processes, and product lifecycles, driving a continuous decline in both production costs and non-production expenses. The company continuously optimizes system operations and strengthens dynamic monitoring and adjustment, fully tapping into cost-reduction potential across every stage of the value chain. By strengthening the monitoring of unit consumption and optimizing processes—alongside conducting benchmarking analyses—the company aims to achieve a year-on-year absolute reduction in total processing costs for refining and chemicals by 2025, while lowering the unit consumption of auxiliary agents and materials to realize cost savings of RMB 15.07 million. Regarding the management of physical resource consumption, the company has established rigorous control targets, advanced cost-benchmarking improvements, enhanced data analysis, and continuously optimized the consumption of water, electricity, gas, and compressed air. The company adheres to a management approach rooted in constant cost-benefit analysis; it deepens cost-reduction measures in procurement by implementing differentiated "item-specific" strategies and establishing a comprehensive price-benchmarking system to lower expenditures. Furthermore, it intensifies efforts to dispose of and revitalize assets by comprehensively reviewing low-efficiency and negative-efficiency assets to optimize the asset structure. Finally, the company strengthens source-level management—employing measures such as inventory reduction—to effectively curtail outsourcing service costs.