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.
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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).