Sinopec Yanshan Petrochemical, a subsidiary of China’s Sinopec Group, produced more than 8,000 tonnes of Group III base oil in September 2026. The achievement also marked the highest monthly product quality level recorded by the facility, highlighting continued improvements in production efficiency and process optimisation.
Sinopec Yanshan Petrochemical is strengthening its position in the high-quality base oil market. According to industry reports published on October 30, 2026, the Chinese producer exceeded the 8,000-tonne production threshold for HVI Group III base oil in September.
Beyond the production volume, the quality of the output is particularly noteworthy. The company reportedly achieved its best monthly quality performance since the start of the operation, reflecting progress in process control, operating conditions and manufacturing optimisation.
Strengthening China’s High-Quality Base Oil Production
Group III base oils play an increasingly important role in the global lubricants industry. Produced through advanced refining and hydroprocessing technologies, these oils offer a high viscosity index, excellent oxidation stability and improved low-temperature performance compared with conventional mineral base oils.
These properties make them essential components in the formulation of advanced automotive and industrial lubricants designed to meet increasingly demanding performance requirements.
Yanshan Petrochemical’s progress is part of Sinopec’s broader strategy to expand its production of higher-value petroleum products. The company operates a dedicated base oil hydroprocessing facility, which began full-scale operations in September 2021.
Since then, the facility has progressively improved its operating performance through feedstock optimisation, process adjustments and enhanced production controls.
Reducing Dependence on Imported Base Oils
Expanding domestic Group III base oil production is a strategic priority for China’s lubricants industry. The country has traditionally relied on imports to meet part of its demand for premium-quality base oils.
By strengthening domestic production capabilities, Chinese manufacturers aim to improve supply security, reduce reliance on overseas suppliers and enhance the competitiveness of their lubricants industry.
Sinopec Yanshan’s production achievements contribute to this objective. Higher output volumes, combined with improved product consistency and quality, could strengthen the availability of locally produced Group III base oils for domestic lubricant formulators.
China’s Growing Role in the Global Base Oil Market
The production milestone comes amid significant changes in international base oil trade flows. In September 2026, China’s base oil exports reportedly reached a record 71,300 tonnes, exceeding imports, which stood at 67,400 tonnes, according to Chinese customs data reported by industry media.
This development reflects China’s growing production capacity and its gradual transition from a major importing market towards a more competitive position in international trade.
Increasing domestic supply, together with improvements in product quality, could enable Chinese producers to strengthen their presence in regional and global markets.
A Significant Milestone for Sinopec
Exceeding 8,000 tonnes of Group III base oil production in a single month represents an important milestone for Sinopec Yanshan Petrochemical.
The achievement demonstrates the progress made in high-quality base oil manufacturing and reinforces the group’s ambitions in higher-value petroleum products.
Maintaining these production levels while ensuring consistent quality and competitive operating costs will be essential to consolidating Yanshan’s position in the Chinese market and expanding its international reach.
With this latest achievement, Sinopec further demonstrates China’s growing capabilities in advanced base oil production, highlighting the country’s ambitions to strengthen technological independence, product quality and international competitiveness in the global lubricants industry.
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