Saudi Aramco, the world’s largest oil-exporting company, has revealed that its joint venture in China will develop a major integrated refinery and petrochemical complex in North-East China.
In 2019, Aramco had entered into an agreement with North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group to form Huajin Aramco Petrochemical Company. The group will develop the liquids-to-chemicals complex in Panjin city in China’s Liaoning province.
The decision is subject to the finalization of transaction documentation, regulatory approvals and closing conditions. The new complex will feed China’s growing demand for energy and chemical products and presents an opportunity for Aramco to supply up to 210,000 barrels per day of crude oil feedstock to the complex.
The new greenfield project will have 300,000 barrels per day of refinery capacity and petrochemical units and is expected to commence operations in 2024. The facility will help meet the country’s growing demand for energy and chemical products.
“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.”
Earlier this week, Aramco signed a preliminary agreement with China Petroleum and Chemical Corporation for potential downstream collaboration to boost its presence in the world’s second-largest economy.