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Saudi Aramco to invest $12.2 billion in petrochemical complex in China


Saudi Aramco signs $12.2bn contract to build oil refineries and petrochemical complexes in China to meet the country's growing demand for fuel and chemicals, according to Reuters.

The construction of the plant is scheduled to begin in 2026 in northeast China. The refinery project in Panjin, Liaoning province, will be Saudi Aramco's second major investment in petrochemicals in China.

The joint venture, Huajin Aramco Petrochemical Company (HAPCO), will build and operate the complex, which will include a 300,000-barrel-per-day refinery and a cracking facility with an annual production capacity of 1.65 million tonnes of ethylene and 2 million tonnes of paraxylene. Aramco will supply up to 210,000 barrels of crude oil per day as feedstock for the plant.

The project is estimated to cost CNY 83.7 billion ($12.2 billion). Construction of the complex will begin after obtaining the necessary administrative permits.

The Chinese state-owned group NORINCO holds a 51% stake in the joint venture, while Saudi Aramco and Panjin Xincheng hold 30% and 19% stakes, respectively.

Saudi Aramco has also signed a memorandum of understanding with the southern Chinese province of Guangdong to explore opportunities for cooperation in energy, finance, research, and innovation.

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Forex Award | World Forex Award | Forex
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