Saudi Aramco, JV Partners Plan To Commence $12.2 B Refinery, Petrochemical Complex In Northeast China: Details Here

Saudi Aramco said in a statement that the oil giant, along with its joint venture partners NORINCO Group and Panjin Xincheng Industrial Group, plans to commence construction of a major integrated refinery and petrochemical complex in northeast China.

What Happened: Huajin Aramco Petrochemical Company is a joint venture between Aramco (30%), NORINCO Group (51%) and Panjin Xincheng Industrial Group (19%).

See Also: How To Invest In Startups

The group together is developing the complex that will combine a 300,000 barrels per day refinery and a petrochemical plant with annual production capacity of 1.65 million metric tons of ethylene and two million metric tons of paraxylene.

Project Cost: The project is expected to cost 83.7 billion yuan ($12.2 billion), according to a statement by Panjin Xicheng Industrial Group WeChat on Sunday, reported Reuters.

The construction is scheduled to begin in the second quarter of 2023 after the project secured the required administrative approvals. It is expected to be fully operational by 2026, Aramco said.

Aramco will supply up to 210,000 bpd of crude oil feedstock to the complex, which is being built in the city of Panjin.

Aramco Executive Vice President of Downstream Mohammed Y. Al Qahtani said the project will support China's growing demand across fuel and chemical products.

"It also represents a major milestone in our ongoing downstream expansion strategy in China and the wider region, which is an increasingly significant driver of global petrochemical demand," he said.

Other Deal: In a separate development, Aramco also signed a memorandum of understanding with the southern Chinese province of Guangdong on Sunday to explore cooperation in sectors including energy, finance, research and innovations, the Reuters stated citing a post on the provincial government’s website.

Read Next: Fed’s Dilemma Far From Over? Survey Shows Its Favorite Inflation Gauge Expected To Stay Higher