Saudi Aramco will hold 35% of the stake, while Norinco and Panjin will hold 36% and 29% respectively
Saudi Aramco has signed an agreement with Norinco Group and Panjin Sincen to form the largest Sino-Foreign Joint Venture to develop a fully integrated refining and petrochemical complex, in Panjin in the Liaoning province of China.
Saudi Aramco said that the three partners will create a new company, Huajin Petrochemical Co. Ltd., as part of the project that will include 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. It will also supply up to 70% of the crude feedstock for the complex which will start operations in 2024.
“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,” said Amin Nasser, CEO of Saudi Aramco.
“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,” he added.
According to the statement from Saudi Aramco, there are additional plans to establish a fuels retail business, which can be integrated into the value chain. It stated that by the end of 2019, a three-party Marketing JV Company is expected to be formed between them, North Huajin and Liaoning Transportation Construction Investment Group Co. Ltd., to develop a retail fuel stations network in the target markets.