President & CEO of Saudi Aramco, Amin Nasser (center) with Chairman of NORINCO Group, Jiao Kaihe (left) and Governor of Liaoning Province Tang Yijun (right) in Beijing, China.
- Total value of the project more than $10 billion US dollars, making it the largest Sino-Foreign JV
- Commercial operation start-up planned for 2024
- Saudi Aramco will hold 35% of the newly formed company, with NORINCO and Panjin holding 36% and 29% respectively
Saudi Aramco today signed an agreement to form a joint venture with NORINCO Group and Panjin Sincen to develop a fully integrated refining and petrochemical complex, located in the city of Panjin in the Liaoning province of China.
The partners will create a new company, Huajin Aramco Petrochemical Co. Ltd., as part of a project that will include a 300 thousand barrel per day refinery with a 1.5 million metric tonnes per annum (mmtpa) ethylene cracker and a 1.3 mmtpa PX unit. Saudi Aramco will supply up to 70% of the crude feedstock for the complex, which is expected to start operations in 2024.
Saudi Aramco CEO, Amin Nasser said: “Our agreement today with NORINCO and the Liaoning province is a clear demonstration of Saudi Aramco’s strategy to move from beyond a buyer-seller relationship, to one where we can make significant investments to contribute to China’s economic growth and development. Our participation in the integrated refining and petrochemical project in Panjin will strengthen our collaborative efforts to enhance energy security, revitalize key growth sectors and industries in Liaoning and also meet rising demand for products and goods in China’s Northeast region.”
There are additional plans to establish a fuels retail business, which will further integrate into the value chain. By the end of 2019, a three-party Marketing JV Company is expected to be formed between Saudi Aramco, North Huajin and Liaoning Transportation Construction Investment Group Co., Ltd. to develop a retail fuel stations network in the target markets.