Saudi Aramco, Chinese companies to build refinery, petrochemical complex in Liaoning province

(MENAFN) Saudi Arabian Oil Co. (Saudi Aramco) has signed an agreement with Norinco Group and Panjin Xincheng Industrial Group to establish a joint venture that will develop a refinery and petrochemical complex in China's Liaoning province. The joint venture, named Hujain Aramco Petrochemical Co., will be majority-owned by Norinco Group and Panjin Xincheng Industrial Group, with Saudi Aramco holding a 30% stake.

According to a press release, the facility will include a refinery capable of producing 300,000 barrels per day, as well as a petrochemical plant with an annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene. The project aims to build a world-leading, integrated downstream sector in China, with a focus on the high conversion of liquids directly into chemicals as part of Aramco's broader liquid-to-chemicals business expansion plans.

Aramco CEO Amin Nasser expressed his enthusiasm for the project, stating that it presents a major opportunity to support China's growing demand for fuel and chemical products. The project is also a significant milestone in Aramco's downstream expansion strategy in China and the wider region, which is becoming an increasingly significant driver of global petrochemical demand.

The joint venture underscores Saudi Aramco's commitment to expanding its global presence and diversifying its portfolio of assets. With China being one of the world's largest consumers of oil and petrochemicals, the deal offers a promising opportunity for the company to tap into the country's growing demand for energy and chemicals. The project is expected to create jobs and generate economic growth in the region, while also contributing to the broader goals of China's Belt and Road Initiative.

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