View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 11, 2022updated 05 Jun 2022 3:13pm

Saudi Aramco JV to build refinery and petrochemical complex in China

Planned to be commissioned in 2024, the refinery will receive up to 210,000 barrels per day of crude oil feedstock from Aramco.

Saudi Arabian Oil Company (Aramco) and its joint venture (JV) partners have made the final investment decision (FID) to develop a refinery and petrochemical complex, in China.

Called Huajin Aramco Petrochemical Company (HAPCO), the JV includes North Huajin Chemical Industries Group, and Panjin Xincheng Industrial Group.

HAPCO will be responsible for building the integrated liquids-to-chemicals complex.

To be built in Panjin City, of the Liaoning province, the refinery and petrochemical project will receive crude oil feedstock of up to 210,000 barrels per day from Aramco.

Aramco will own a 35% stake in the JV, whereas Panjin Xincheng Industrial Group will own a 29% interest.

North Huajin Chemical Industries Group, which is a subsidiary of Norinco Group, will own the remaining 36% stake in the JV.

The downstream project will comprise a refinery, with a capacity of 300,000 barrels per day (bpd), and an ethylene-based steam cracker, with a capacity of 1.5 million metric tonnes per annum (mmtpa).

Planned to be commissioned in 2024, the new project is expected to help China in meeting the surging demand for energy and chemical products.

Aramco downstream senior vice-president Mohammed Al Qahtani said: “China is a cornerstone of our downstream expansion strategy in Asia, and an increasingly significant driver of global chemical demand.

“Continued energy security remains a shared priority, and this partnership represents another major milestone in our journey together, supporting China’s vision to create a modern economy grounded in innovation, ambition, and sustainability.

“It will further support Aramco’s broader objective of becoming a global leader in liquids-to-chemicals.”

Aramco said that the FID, however, is conditional on finalising the transaction documentation, securing regulatory approvals, and closing conditions.

Earlier this week, Saudi Aramco Asia, a unit of Aramco, signed an agreement for a potential downstream collaboration with China Petroleum & Chemical (Sinopec).

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology