Saudi Aramco has signed an agreement to form a joint venture with NORINCO Group and Panjin Sincen to develop a fully integrated refining and petrochemical complex, located in the city of Panjin in the Liaoning province of China.
The partners will create a new company, Huajin Aramco Petrochemical Co. Ltd., as part of a project that will include a 300,000 barrel per day refinery with a 1.5 million metric tonnes per annum (mmtpa) ethylene cracker and a 1.3 mmtpa PX unit. Saudi Aramco will supply up to 70% of the crude feedstock for the complex, which is expected to start operations in 2024.
“Our participation in the integrated refining and petrochemical project in Panjin will strengthen our collaborative efforts to enhance energy security, revitalize key growth sectors and industries in Liaoning and also meet rising demand for products and goods in China’s Northeast region,” said Saudi Aramco CEO Amin Nasser.
There are additional plans to establish a fuels retail business, which will further integrate into the value chain. By the end of 2019, a three-party marketing joint venture company is to be formed between Saudi Aramco, North Huajin and Liaoning Transportation Construction Investment Group Co., Ltd. to develop a retail fuel stations network in the target markets.