Saudi Aramco has announced that its joint venture in China, Huajin Aramco Petrochemical Company (HAPCO), plans to construct a major integrated refinery and petrochemical complex in the northeast of the country. The complex will combine a 300,000 barrels per day (bpd) refinery and a petrochemical plant with an annual production capacity of 1.65 million metric tons of ethylene and two million metric tons of paraxylene.
Aramco holds a 30% shareholding in HAPCO, with China’s NORINCO Group owning a 51% stake and the other 19% owned by Panjin Xincheng Industrial Group. Construction is expected to start in the second quarter of 2023, subject to administrative approvals, and the complex is expected to be operational by 2026. Aramco will supply up to 210,000 bpd of crude oil feedstock to the complex, which is being built in the city of Panjin, in China’s Liaoning province. Aramco’s President & CEO, Amin Nasser, stated that the company is doubling down on China’s energy supply, including new lower carbon products, chemicals, and advanced materials, all supported by emissions reduction technologies. Aramco aims to achieve net zero emissions from its operations by 2050 and has a capital expenditure of between $45bn and $55bn planned for 2023, including external investments.