Saudi Aramco has said that its joint venture will develop a refinery and petrochemical complex in China.
The world’s biggest oil producer has taken the final investment decision to participate in the development of the complex in Northeast China. Huajin Aramco Petrochemical Company (HAPCO), a joint venture between Aramco, North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group, will develop the liquids-to-chemicals complex.
The decision is subject to finalisation of transaction documentation, regulatory approvals and closing conditions, Saudi Aramco said in a statement.
The project, which will allow Aramco to supply up to 210,000 barrels per day of crude oil feedstock to the complex, is expected to be operational in 2024. It will combine a 300,000 barrels per day refinery capacity and ethylene-based steam cracker, a building block petrochemical used to manufacture thousands of everyday products.
The facility, which will be built in the city of Panjin, in China’s Liaoning Province, will help meet the country’s growing demand for energy and chemical products.
Mohammed Al Qahtani, Aramco senior vice-president of downstream, 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.”