SINGAPORE, Mar 27 (Reuters): Saudi Aramco signed an agreement with Chinese partners on Sunday for an oil refinery and petrochemical project in northeast China that is expected to start in 2026 to meet the country's growing demand for fuel and chemicals.
The project in Liaoning province's city of Panjin will be Aramco's second major refining-petrochemical investment in China and follows the world's top oil exporter reporting a record profit of $161 billion in 2022.
Joint venture Huajin Aramco Petrochemical Company (HAPCO) will build and operate the complex that will house a 300,000 barrels per day (bpd) oil refinery and a cracker with annual production capacity of 1.65 million tonnes of ethylene and 2 million tonnes of paraxylene, state-owned Aramco said in a statement.
The project is expected to cost 83.7 billion yuan ($12.2 billion), partner Panjin Xicheng Industrial Group said in a statement on WeChat on Sunday.
Construction at the complex will start in the second quarter after the project secures the required administrative approvals, Aramco said. The plant is expected to be fully operational by 2026, it added.
Aramco will supply up to 210,000 bpd of crude oil as feedstock for the plant.
State-owned NORINCO Group, a Chinese military equipment maker, owns 51 per cent of HAPCO while Aramco and Panjin Xincheng hold stakes of 30 per cent and 19 per cent, respectively.
Separately, Aramco on Sunday signed a memorandum of understanding with the southern Chinese province of Guangdong to explore cooperation in sectors including energy, finance, research and innovations, according to a post on the provincial government's website.
© 2024 - All Rights with The Financial Express
