Saudi Aramco building $10bn joint venture refinery-petrochemical complex in Panjin, China

Nurluqman Suratman

27-Mar-2023

SINGAPORE (ICIS)–Saudi Aramco and its China-based joint venture partners are building a refinery and petrochemical complex at Panjin in Liaoning province which is expected to start full operations in 2026, the energy giant said on Sunday.

Huajin Aramco Petrochemical Company (HAPCO), a joint venture between Aramco, NORINCO Group and Panjin Xincheng Industrial Group, is developing the complex.

The new complex will combine a 300,000 bbl/day refinery and a petrochemical plant with an annual production capacity of 1.65m tonnes of ethylene and 2m tonnes of paraxylene (PX), it said in a statement.

Saudi Aramco earlier in 2019 said that the project was expected to cost more than $10bn.

Construction is due to start in the second quarter of 2023 after the project secures the required administrative approvals, Aramco said.

Aramco will supply up to 210,000 bbl/day of crude oil feedstock to the complex.

“The project is of great significance for Panjin to promote reducing oil and increasing chemicals and specialty products, strengthening integration of the refining and chemical industry,” said Jia Fei, the chairman of Panjin Xincheng.

“It is a symbolic project for Panjin as it seeks to accelerate the development of an important national petrochemical and fine chemical industry base,” he said.

State-owned Chinese military equipment producer NORINCO group owns a 51% stake in HAPCO, while Aramco and Panjin Xincheng Industrial Group hold 30% and 19% stakes in the firm respectively.

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