China: a new large-scale refinery and petrochemical project
Saudi oil giant Aramco and its Chinese partners NORINCO Group and Panjin Xincheng Industrial Group have announced a new refinery and petrochemical project in China.
| Sectors | Oil, Refining |
|---|---|
| Themes | Investments & Transactions, Corporate Investment |
| Companies | Aramco |
| Countries | China |
A major refining and petrochemical project in China is expected to be completed by 2026. Huajin Aramco Petrochemical Company, a joint subsidiary of Aramco (30%), NORINCO Group (51%) and Panjin Xincheng Industrial Group (19%), is planning to build a refining and petrochemicals complex in the city of Panjin, Liaoning Province, in northeast China. The complex will include a 300,000 barrel per day refinery and a petrochemical plant with an annual production capacity of 1.65 million tons of ethylene and 2 million tons of paraxylene.
Construction of the refining and petrochemical complex project
After obtaining the necessary administrative approvals, construction of the refining and petrochemicals project in China is expected to begin in the second quarter of 2023 and is expected to be fully operational by 2026. Aramco will supply up to 210,000 barrels per day of crude to the new plant, which will be located in the city of Panjin.
Impact on the economy and industry in China
This refining and petrochemical project is important for China as it will support the country’s growing demand for petrochemicals. In addition, it marks a major step in Aramco’s downstream expansion strategy in China and the wider region, which is an increasingly important driver of global petrochemical demand.
For NORINCO Group, this project is a key element in the joint implementation and execution of the Belt and Road Initiative, a global economic development initiative. It will also help strengthen the petroleum and petrochemical industry in China.
For Panjin Xincheng Industrial Group, the project is a symbol of accelerating the development of an important national petrochemical and fine chemical industry base. It is also considered a key project for the promotion of chemicals and specialty products, as well as for the consolidation of the integration of the refining and petrochemical industry.
This integrated refinery and petrochemical project is an example of the economic cooperation between China and Saudi Arabia. It is also an example of Aramco’s downstream development strategy in China and the region. This project is important for the global petrochemical industry and for China’s economic growth.
With this project, Aramco continues to expand and strengthen its position in the global energy and petrochemical markets.
