Saudi Arabia's state oil company Aramco said it will invest in the development of a major integrated refinery and petrochemical complex in northeast China, the company said in a statement Thursday.
The move comes two days after the company signed a Memorandum of Understanding (MoU) with China Petroleum & Chemical Corporation (Sinopec) for potential downstream collaboration in 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.
With operations start expected in 2024, Aramco said the project will provide up to 210,000 barrels per day (bpd) of crude oil feedstock for the complex.
It will combine a 300,000 bpd refinery capacity and ethylene-based steam cracker, a building block petrochemical used to manufacture thousands of everyday products, the company said.
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, it added.
'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,' Mohammed Al Qahtani, Aramco senior vice-president of downstream, was quoted as saying in the statement.
By Sibel Morrow