Hengli Petrochemical (Dalian) Refinery Co. Ltd

Bloomberg confirmed on 7 May 2026 that China's NFRA privately ordered the four largest state banks, ICBC, Agricultural Bank of China, CCB, and Bank of China, to halt new yuan loans to Hengli and four other sanctioned refineries, while MOFCOM's Announcement No. 21 simultaneously ordered those same firms to defy OFAC . The NFRA-MOFCOM contradiction means Hengli faces three simultaneous intersecting legal regimes: OFAC's designation, General License V's 24 May wind-down Deadline, and the Blocking Rules prohibition on compliance.

The 24 May Deadline for General License V is the nearest hard tripwire. After that date, any continued wind-down transactions with Hengli require a fresh OFAC licence. Whether Hengli quietly reduces Iranian crude purchases under GL-V cover, or holds position behind the Blocking Rules shield, will be the clearest indicator of whether MOFCOM's defiance order reflects actual Chinese state policy or diplomatic positioning ahead of the Trump-Xi summit . By 21 May, Hengli Petroleum Singapore — the refinery's international trading Arm — had begun staff layoffs, the clearest operational signal yet that Hengli is treating the Sunday deadline as a real enforcement event .

Hengli Petrochemical (Dalian) Refinery Co. Ltd is one of China's largest private refining and petrochemical groups, listed on the Shenzhen Stock Exchange through its parent Hengli Petrochemical Co., Ltd. Its Dalian facility in Liaoning Province processes roughly 400,000 Barrels Per Day, making it China's second-largest independent teapot refinery by capacity. On 24 April 2026, OFAC designated it under press release sb0472 for purchasing Iranian crude from Sepehr Energy Jahan Nama Pars, the oil sales Arm of Iran's Armed Forces General Staff. Simultaneously, OFAC issued General License V authorising a wind-down period for existing Hengli transactions expiring 24 May 2026. On 2 May 2026, MOFCOM named Hengli in China's first-ever activation of the 2021 Blocking Rules, formally prohibiting it from complying with OFAC's designation.

Hengli Petrochemical (Dalian) Refinery Co. Ltd is one of China's largest private refining and petrochemical groups, listed on the Shenzhen Stock Exchange through its parent Hengli Petrochemical Co., Ltd. Its Dalian facility in Liaoning Province processes roughly 400,000 Barrels Per Day, making it China's second-largest independent teapot refinery by capacity. Hengli supplies a significant portion of China's refined products and petrochemicals, operating as both a primary energy processor and a downstream petchem player with global trading arms.

On 24 April 2026, OFAC designated it under press release sb0472 for purchasing Iranian crude from Sepehr Energy Jahan Nama Pars, the oil sales Arm of Iran's Armed Forces General Staff. Treasury Secretary Scott Bessent attached explicit nuclear-programme language to the designation, the first time such framing appeared in a 2026 shadow-fleet action. Simultaneously, OFAC issued General License V authorising a wind-down period for existing Hengli transactions. In the days following, Hengli's Singapore trading Arm transferred 95% of its equity to a Chinese state-affiliated entity, widely read as insulating the subsidiary from dollar-clearing exposure. On 2 May 2026, MOFCOM named Hengli in China's first-ever activation of the 2021 Blocking Rules, formally prohibiting it from complying with OFAC's designation.