China: Engineering Saudi Aramco Suspends Plans for 10 Billion Dollar Petrochemicals Complex
Saudi Aramco has halted the deal with its Chinese partners – Norinco and Panjin Sincen – to build a 10 billion dollar refining and petrochemicals complex in the Chinese province of Liaoning. Lower oil prices across the globe are the core reason behind this move.
China – Saudi Aramco, the multinational petroleum and natural gas company, has suspended a joint venture deal with its partners to construct a 10 billion dollar refining and petrochemicals complex in China. The move is in line with the company’s current strategy of reducing its spending in the background of lower oil prices, according to news reports.
Last year, Saudi Aramco had decided to form a joint venture with China North Industries Corporation (Norinco) and Panjin Sincen for the mega project. A company under the name ‘Huajin Aramco Petrochemical Co.’ was also set to be established as part of the project which included a 300,000-barrels per day (bpd) refinery with a 1.5-million-metric tonnes per year ethylene cracker. The Saudi company was also going to supply as much as 70 % of the crude for the refinery.
However, with Saudi Aramco discontinuing its investment in the project, work on the new complex is still expected to continue with the support of the remaining partners, according to reports.