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.
