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Saudi Aramco sets up JV to develop a 300 kb/d refinery in Liaoning (China)

Saudi Arabia’s state-owned oil and gas company Saudi Aramco has signed agreements with the Chinese companies NORINCO and Panjin Xincheng to set up a joint venture  (JV) and develop a 300 kb/d refinery, as well as a petrochemical complex, in Panjin, in the Liaoning Province (north-eastern China). Construction of the Liaoning project is scheduled to start in the second quarter of 2023 and is expected to become fully operational by 2026. The project is expected to cost a total of CNY83.7bn (US$12.2bn). 

Huajin Aramco Petrochemical Company (HAPCO), the newly created JV between Saudi Aramco (30%), NORINCO (51%) and Panjin Xincheng (19%), will develop the refinery alongside a petrochemical plant with an annual production capacity of 1.65 Mt of ethylene and 2 Mt of paraxylene. Saudi Aramco will supply up to 210 kb/d of crude oil as feedstock for the plant. 

In addition, Saudi Aramco has announced it signed definitive agreements to acquire a 10% interest in the Shenzhen-listed Rongsheng Petrochemical company for CNY24.6bn (US$3.6bn). Under the agreement, Saudi Aramco will also supply 480 kb/d of crude oil to the Zhejiang Petroleum and Chemical company, a Rongsheng affiliate, under a 20-year long-term sales agreement.

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