The giant petrochemical complex will exemplify Aramco’s international downstream strategy
Aramco and joint venture (JV) partners Norinco Group and Panjin Xincheng Industrial Group plan to start construction of a major integrated refinery and petrochemical complex in northeast China, set to be the largest in the region.
Huajin Aramco Petrochemical Company (Hapco), a JV between Aramco (30%), Norinco Group (51%) and Panjin Xincheng Industrial Group (19%), is developing the complex that will combine a 300,000 barrels per day (bpd) refinery and a petrochemical plant with annual production capacity of 1.65m metric tons of ethylene and two million metric tons of paraxylene.
Construction is due to start in the second quarter of 2023 after the project secured administrative approvals, with completion scheduled for 2026.
Aramco said it will supply up to 210,000bpd of crude oil feedstock to the complex, which is being built in the city of Panjin, in China’s Liaoning province.
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Mohammed Y Al Qahtani, Aramco Executive Vice President of Downstream said, “This important project will support China’s growing demand across 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 added, “This large-scale refinery and petrochemical complex is a key project of Norinco Group to implement and realise the joint development of the high-quality Belt and Road initiative, promote industrial restructuring, and enhance the oil and petrochemical sector to become stronger, better and larger. It will play an important role in deepening economic and trade cooperation between China and Saudi Arabia, and achieving common development and prosperity.”
Jia Fei, Panjin Xincheng Chairman of the Board concluded, “The project is of great significance for Panjin to promote increasing chemicals and specialty products, strengthening 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.”
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