Aramco, Partners to Construct Major Refinery, Petrochemical Complex in China

Aramco and joint venture partners NORINCO Group and Panjin Xincheng Industrial Group plan to start constructing a major integrated refinery and petrochemical complex in northeast China.

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

It is developing a complex that would combine a refinery that produces 300,000 barrels per day and a petrochemical plant with an annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene.

Construction will start in the second quarter of 2023 after the project secures the required administrative approvals. It is expected to be fully operational by 2026.

Aramco will supply up to 210,000 bpd of crude oil feedstock to the complex, built in Panjin, in China’s Liaoning province.

Aramco Executive Vice President of Downstream Mohammed al-Qahtani said it was an important project to support China’s growing demand for fuel and chemical products.

“It also represents a major milestone in our ongoing downstream expansion strategy in China and the wider region, an increasingly significant driver of global petrochemical demand,” he added.

NORINCO Group Deputy General Manager Zou Wenchao said a large-scale refinery and petrochemical complex is a crucial project of NORINCO Group to implement and realize the joint development of the high-quality Belt and Road initiative, promote industrial restructuring, and enhance the oil and petrochemical sector to become stronger, better, and larger.

He noted that it would be necessary to deepen economic and trade cooperation between China and Saudi Arabia and achieve joint development and prosperity.

Panjin Xincheng Chairman of the Board Jia Fei indicated that the project is significant 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 essential national petrochemical and fine chemical industry base.

Meanwhile, Aramco CEO Amin Nasser stressed that China’s long-term energy security and high-quality development were among the company’s highest priorities.

Speaking at the China Development Forum 2023, Nasser said expanding Aramco’s oil production capacity by a million to 13 million barrels per day by 2027 will strengthen China’s long-term energy security.

He also noted that increasing gas production by more than fifty percent by 2030 should release an additional million barrels of oil daily for export.

The official said the global energy transition desperately needs realism and clarity, adding: “We welcome the pragmatic thoughts of Chinese President Xi Jinping on this.”

Aramco is already working on three major strategies to support China’s energy and development priorities.

The company recently launched a $1.5 billion venture capital sustainability fund to invest in advanced technologies to help all move closer to a net-zero emissions future.

“We are also evaluating an entry into liquified natural gas,” Nasser announced.

He highlighted the excellent example of the multiple and desirable opportunities for Chinese companies in the Kingdom in various energy and non-energy areas.

“More broadly, we are developing advanced, more sustainable materials such as those based on polymers and carbon to complement conventional ones while reducing their high cost,” he remarked.

Egypt’s net foreign assets (NFAs) increased by $1.48 billion in February, marking the second monthly rise this year following consecutive declines in the final three months of 2024, according to data released by the Central Bank of Egypt (CBE).

Based on official exchange rates provided by the CBE, calculations by Reuters showed that net foreign assets rose to the equivalent of $10.18 billion at the end of February, up from $8.70 billion in January.
A banking source attributed the increase to growing foreign investor purchases of Egyptian treasury bills. January also saw an uptick in foreign assets after the government issued $2 billion in international bonds—the country’s first dollar-denominated bond sale in four years.

Further growth in foreign assets is expected in March after the International Monetary Fund approved a $1.2 billion disbursement to Egypt, following the fourth review of its $8 billion economic reform program signed in March 2024. Last month’s IMF approval also unlocked an additional $1.3 billion under the Fund’s Resilience and Sustainability Facility.

Following Egypt’s fourth currency devaluation in March 2024, the overall net foreign asset position of Egyptian banks swung into surplus by about $14.29 billion in May—the first surplus in nearly 28 months. This turnaround came after the deficit had ballooned to nearly $29 billion by the end of January, just before the central bank’s latest reform measures.

However, the net foreign position of commercial banks alone (excluding the central bank) turned negative again in August due to renewed demand pressures for US dollars, just three months after the broader recovery.

In February, both the central bank and commercial banks recorded an increase in foreign assets. While the CBE’s foreign liabilities also grew during the month, those of commercial banks declined.

Aramco, Partners to Construct Major Refinery, Petrochemical Complex in China