Saudi Aramco Steps up Engagement in China

24.03.2022 - Saudi Aramco, world‘s largest oil company, plans to participate in developing a major integrated refinery and petrochemical complex in Northeast China. It has also signed a memorandum of understanding (MoU) with Chinese state-owned chemicals giant Sinopec for potential downstream collaboration on projects in the People’s Republic.

The liquids-to-chemicals complex, still in the planning stages, is expected to go on stream in 2024 at Panjin City in China’s Liaoning Province. The project will be realized by Huajin Aramco Petrochemical Company (HAPCO), a joint venture between Aramco, North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group established in late 2019.

Under the plans. which are still subject to adjustments and regulatory approvals, Aramco will  to supply up to 210,000 bbl/d of crude oil to the complex. Sinopec’s president, Yu Baocai said the agreement with Aramco will support the optimization of the Chinese petchems giant’s refinery feedstock and downstream development and offer new opportunities to deepen and expand activity amid an accelerating global energy transition.

The Chinese executive added that the deal represents a “model of energy cooperation between China and Saudi Arabia.” The two companies can collaborate on mutually beneficial crude trading, refining and chemical joint ventures, engineering services as well as science and technology research and development.

Author: Dede Williams, Freelance Journalist