Aramco joint venture to develop major refinery and petrochemical complex in China
Aramco has taken the final investment decision to participate in the development of a major integrated refinery and petrochemical 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, which is subject to finalisation of transaction documentation, regulatory approvals and closing conditions, follows the establishment of HAPCO in December 2019 between the three partners. The project, which presents an opportunity for 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.”