The joint venture has been undertaken to develop a fully integrated refining and petrochemical complex in China. The total value of the mega project is expected to be more than 10 billion dollars.
Beijing/China – Saudi Aramco recently signed an agreement to form a joint venture with Norinco Group and Panjin Sincen to develop a fully integrated refining and petrochemical complex in Panjin, Liaoning province of China.
The partners will create a new company, Huajin Aramco Petrochemical Co., as part of a project that will include a 300 thousand 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.
With this agreement, Saudi Aramco aims to move from beyond a buyer-seller relationship, to one where it can make significant investments to contribute to China’s economic growth and development. Saudi Aramco CEO, Amin Nasser said: “Our participation in the integrated refining and petrochemical project in Panjin will strengthen our collaborative efforts to enhance energy security, revitalise key growth sectors and industries in Liaoning and also meet rising demand for products and goods in China’s Northeast region.”
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 JV Company is expected to be formed between Saudi Aramco, North Huajin and Liaoning Transportation Construction Investment Group Co. to develop a retail fuel stations network in the target markets.