Saudi Aramco’s joint venture Huajin Aramco Petrochemical Company (HAPCO) broke ground on a $10 billion integrated refinery and petrochemical complex in Panjin city in China’s Liaoning Province.
The joint venture is 30 percent owned by Aramco, while NORINCO Group and Panjin Xincheng Industrial Group own 51 percent and 19 percent, respectively.
Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream, said that HAPCO will be a model for China’s modern petrochemicals industry moving forward, able to deliver lower carbon products, chemicals, and advanced materials.
Aramco announced earlier that the complex was expected to be fully operational by 2026. The Saudi firm will likely supply up to 210,000 barrels per day (bpd) of crude oil feedstock to the facility.
The Saudi hydrocarbons giant had also signed definitive agreements to acquire a 10 percent interest in Shenzhen-listed Rongsheng Petrochemical Co. for $3.6 billion.
Aramco will supply a total of 690,000 barrels-per-day of crude to high chemical conversion assets in China through its two ventures, in line with its strategy of converting four million bpd of crude to chemicals by 2030.
(Writing by D Madhura; Editing by Anoop Menon)