Saudi Arabian Oil Company (Aramco) is partnering with China’s NORINCO Group and Panjin Xincheng Industrial Group to construct a large integrated refinery and petrochemical complex in northeast China.
The Huajin Aramco Petrochemical Company (HAPCO) joint venture, with Aramco owning a 30% stake, NORINCO Group 51%, and Panjin Xincheng Industrial Group 19%, will oversee the project that combines a 300,000 barrels per day refinery and a petrochemical plant with an annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene.
Construction to Commence in Q2 2023
Construction on the complex, located in the city of Panjin in China’s Liaoning province, is set to begin in the second quarter of 2023 after receiving necessary administrative approvals. The complex is expected to be fully operational by 2026. Aramco will supply up to 210,000 barrels per day of crude oil feedstock to the complex, supporting China’s growing demand for fuel and chemical products.
Aramco and Joint Venture Partners Aim to Meet China’s Rising Demand for Chemicals and Fuel
Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream, said “This important project will support China’s growing demand across the fuel and chemical products. It also represents a major milestone in our ongoing downstream expansion strategy in China and the wider region, which is an increasingly significant driver of global petrochemical demand.”
Zou Wenchao, NORINCO Group Deputy General Manager, emphasized that the complex is a key project for the company to realize the joint development of the high-quality Belt and Road Initiative, promote industrial restructuring, and enhance the oil and petrochemical sector. He added that it will play a critical role in strengthening economic and trade cooperation between China and Saudi Arabia and achieving common development and prosperity.
Jia Fei, Panjin Xincheng Chairman of the Board, stated that “the project is of great significance for Panjin to promote increasing chemicals and specialty products, strengthening the integration of the refining and chemical industry. It is a symbolic project for Panjin as it seeks to accelerate the development of an important national petrochemical and fine chemical industry base.”