Saudi Aramco’s joint venture, Huajin Aramco Petrochemical Co (HAPCO), has embarked on a groundbreaking $10 billion integrated refinery and petrochemical complex in Panjin city, China’s Liaoning Province. HAPCO, a collaboration between Aramco (30%), NORINCO Group (51%), and Panjin Xincheng Industrial Group (19%), is set to revolutionize the region’s downstream sector.
The ambitious complex, expected to be operational by 2026, will house a 300,000 barrels per day refinery and a petrochemical plant with an impressive annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene. Aramco is poised to provide the facility with approximately 210,000 barrels per day of crude oil feedstock.
This significant investment aligns with Aramco’s strategy to fortify its presence in China’s downstream sector. In line with this vision, the company signed agreements to acquire a 10% stake in Rongsheng Petrochemical Co., a Shenzhen-listed company, for a total of $3.6 billion.
NORINCO Group’s general manager expressed enthusiasm for the project, highlighting its role in deepening economic and trade cooperation between China and Saudi Arabia while fostering mutual development and prosperity.
The Saudi Aramco-led megaproject represents a major milestone in the global refining and petrochemical industries, underscoring the company’s commitment to shaping the future of energy and enhancing bilateral partnerships between two key players in the energy market. As this venture progresses, it is set to play a pivotal role in strengthening China’s refining capabilities and Saudi Arabia’s position as a vital supplier of crude oil, fueling a new era of economic growth and cooperation between the two nations.