RIYADH: A ground-breaking ceremony was held on Wednesday for a major integrated refinery and petrochemical complex being developed by Huajin Aramco Petrochemical Co.
Saudi Aramco will own a 30 percent stake in the joint venture, while Norinco Group and Panjin Xincheng Industrial Group will hold 51 percent and 19 percent shares respectively. The project will be built in the city of Panjin in China’s Liaoning province. On March 26, it was announced that the complex was expected to be fully operational by 2026. Aramco is expected to supply up to 210,000 barrels per day of crude oil feedstock to the facility.
Mohammed Y. Al Qahtani, Aramco executive vice president of downstream, said: “This complex is a cornerstone of our efforts to support a world-class, integrated downstream sector here in China, as petrochemicals will play a vital role in our joint success. Once complete, we believe HAPCO will be a model for China’s modern petrochemicals industry moving forward, able to deliver lower carbon products, chemicals, and advanced materials.”
The facility will combine a 300,000 barrels per day refinery and a petrochemical plant with an annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene.
On March 27, Aramco also announced it had signed definitive agreements to acquire a 10 percent interest in Shenzhen-listed Rongsheng Petrochemical Co. Ltd. for $3.6 billion.
Combined, the partnership with Rongsheng and the HAPCO joint venture would see Aramco supply a total of 690,000 bpd of crude to high chemical conversion assets in China, in line with its strategy of converting four million bpd of crude to chemicals by 2030.
Norinco Group Deputy General Manager Zou Wenchao said that the new venture will “play an important role in deepening economic and trade cooperation between China and Saudi Arabia and achieving common development and prosperity.”
“The project is of great significance for Panjin to promote increasing chemicals and specialty products, strengthening the integration of the refining and chemical industry. It is a symbolic project for Panjin as it seeks to accelerate the development of an important national petrochemical and fine chemical industry base,” said Jia Fei, Panjin Xincheng chairman of the board.