In a momentous event that unfolded today, Huajin Aramco Petrochemical Company (HAPCO) marked the commencement of a significant milestone with a grand ground-breaking ceremony. The occasion celebrated the initiation of a colossal integrated refinery and petrochemical complex, set to redefine the industry landscape. In a groundbreaking collaboration, energy giant Aramco has joined forces with NORINCO Group and Panjin Xincheng Industrial Group to spearhead the development of a cutting-edge complex in the vibrant city of Panjin, nestled in China's Liaoning Province. With Aramco holding a 30% stake, Norinco Group taking the majority share of 51%, and Panjin Xincheng Industrial Group securing a 19% interest, this joint venture is set to revolutionize the industrial landscape in the region.
In a recent announcement on March 26, it was revealed that the complex is anticipated to achieve full operational status by the year 2026. In a significant development, it has been reported that Aramco, the renowned oil giant, is anticipated to provide a substantial quantity of crude oil feedstock to the facility. The estimated supply is expected to reach an impressive 210,000 barrels per day (bpd). This move is poised to have a notable impact on the operations of the facility, further solidifying Aramco's position in the oil industry.
Dignitaries present at the momentous ground-breaking ceremony included Abdulrahman Alharbi, the esteemed Saudi Ambassador to China; Hao Peng, Secretary of the Provincial Party Committee and Chairman of the Standing Committee of the Liaoning Provincial People's Congress; Li Lecheng, Deputy Secretary of the Provincial Party Committee and Governor of the Liaoning Provincial Government; Liu Shiquan, Chairman of Norinco Group; Wang Bingsen, Secretary of the Panjin Municipal Party Committee; and Zou Wenchao, Vice President of Norinco Group.
In a recent address at the event, Mohammed Y. Al Qahtani, the esteemed Executive Vice President of Downstream at Aramco, expressed his enthusiasm for the establishment of a new complex. Al Qahtani emphasized the significance of this complex, stating that it serves as a crucial foundation for their endeavors to bolster a top-tier, integrated downstream sector in China. He further highlighted the pivotal role that petrochemicals will play in achieving mutual triumph. HAPCO, upon its completion, is poised to become a shining example for China's burgeoning petrochemicals sector. With its ability to produce environmentally friendly products, chemicals, and cutting-edge materials, it is set to lead the way in the country's modern petrochemicals industry.
In a recent development, Aramco, the renowned Saudi Arabian oil company, made a significant announcement on March 27. The company revealed that it had successfully finalized agreements to secure a 10% stake in Rongsheng Petrochemical Co. Ltd., a prominent player listed on the Shenzhen stock exchange. The acquisition, valued at RMB 24.6 billion (equivalent to $3.6 billion based on prevailing exchange rates), marks a noteworthy move by Aramco to expand its presence in the petrochemical industry. In a strategic move, Aramco has announced its partnership with Rongsheng and the HAPCO joint venture. This collaboration aims to bolster Aramco's presence in China by supplying a substantial 690,000 barrels per day (bpd) of crude to high chemical conversion assets. This move aligns perfectly with Aramco's long-term vision of converting an impressive four million bpd of crude to chemicals by the year 2030.
