Saudi Aramco, Chinese partners aim to complete operations in 2026

SINGAPORE Saudi Aramco and its Chinese partners hope to complete full operations at a refinery and petrochemical project in northeast China in 2026 to meet the growing demand for fuel and petrochemicals, the state-owned major said on Sunday.

Aramco's second major refining-petrochemical investment in China is expected to cost $10 billion, according to the project in Panjin city.

Aramco said in a statement that the joint venture Huajin Aramco Petrochemical CompanyAramco Petrochemical Company HAPCO will build and operate the complex that will house a 300,000 barrels per day bpd refinery and a cracker with an annual production capacity of 1.65 million tons of ethylene and 2 million tons of xylene.

Aramco said that the construction at the complex will start in the second quarter after the project gets the required administrative approvals. It added that the plant is expected to be fully operational by 2026.

Aramco will provide up to 210,000 barrels 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 Industrial Group hold stakes of 30 per cent and 19 per cent, respectively.