Aramco, along with its joint venture partners NORINCO Group and Panjin Xincheng Industrial Group, is set to commence the construction of a significant integrated refinery and petrochemical complex in the northeastern region of China.
In a groundbreaking collaboration, Huajin Aramco Petrochemical Company (HAPCO) is spearheading the development of an ambitious project. HAPCO, a joint venture comprising Aramco (30%), Norinco Group (51%), and Panjin Xincheng Industrial Group (19%), is set to construct a cutting-edge complex. This state-of-the-art facility will seamlessly integrate a refinery capable of processing an impressive 300,000 barrels per day alongside a petrochemical plant boasting a remarkable annual production capacity. The plant is expected to churn out a staggering 1.65 million metric tons of ethylene and an additional 2 million metric tons of paraxylene. This venture promises to revolutionize the industry and solidify HAPCO's position as a key player in the global market.
After successfully obtaining the necessary administrative approvals, construction for the project is set to commence in the second quarter of 2023. The anticipated timeline for full operational capacity is set for the year 2026.
In a significant development, energy giant Aramco has announced its commitment to provide a substantial amount of crude oil feedstock to a major complex currently under construction in Panjin, located in China's Liaoning province. The supply is expected to reach an impressive capacity of up to 210,000 barrels per day (bpd). This move by Aramco marks a notable collaboration between the Saudi Arabian company and the Chinese city, further solidifying their partnership in the energy sector.
In a statement provided by Mohammed Y. Al Qahtani, the esteemed Executive Vice President of Downstream at Aramco, it was revealed that an imperative project is set to bolster China's escalating need for fuel and chemical products. The recent development not only signifies a significant achievement in our continuous efforts to expand our operations in China and the surrounding region but also highlights the growing importance of this area as a key catalyst for global petrochemical demand.
In a recent statement, Zou Wenchao, the Deputy General Manager of NORINCO Group, emphasized the significance of a major refinery and petrochemical complex. According to Wenchao, this ambitious project is a crucial step towards the successful implementation of the high-quality Belt and Road initiative. The primary objectives of this endeavor are to drive industrial restructuring, bolster the oil and petrochemical sectors, and ultimately achieve a stronger, better, and larger industry. The statement highlights the significant role that it will play in fostering economic and trade collaboration between China and Saudi Arabia, ultimately leading to mutual growth and prosperity.
In a recent statement, Jia Fei, Chairman of the Board at Panjin Xincheng, emphasized the immense importance of a new project. According to Fei, this endeavor holds significant implications for Panjin's efforts to bolster the production of chemicals and specialty products while simultaneously enhancing the integration of the refining and chemical industries. The project holds great symbolic significance for Panjin, as it aims to expedite the growth of a crucial national petrochemical and fine chemical industry hub.
