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Saudi Arabia, China launch joint ‘Belt and Road’ refinery venture

Groundbreaking ceremony of $12.2B petrochemical complex for chemicals, raw materials held in China’s Liaoning province

Saudi Arabia and China have launched a joint venture of integrated refinery and petrochemical complex for fine chemicals and raw materials under the multi-trillion-dollar Belt and Road Initiative (BRI).

The $12.2 billion project between China and Saudi Arabia, dubbed as a green and low-carbon initiative, was launched in Panjin city of northeastern Liaoning province, according to the Chinese daily Global Times.

Aramco, a Saudi Arabian public petroleum company, said in a statement that the ground-breaking ceremony for the project took place on Wednesday.

It added Aramco will hold a 30% stake while Norinco Group and Panjin Xincheng Industrial Group will hold 51% and 19% stakes, respectively.

The complex is “expected to be fully operational by 2026,”said Aramco, which is expected to “supply up to 210,000 barrels per day (bpd) of crude oil feedstock to the facility.”

Mohammed Y. Al Qahtani, a senior Aramco official, said: “This complex is a cornerstone of our efforts to support a world-class, integrated Downstream sector here in China, as petrochemicals will play a vital role in our joint success.”

Once complete, Huajin Aramco Petrochemical Company (HAPCO) “will be a model for China’s modern petrochemicals industry moving forward, able to deliver lower carbon products, chemicals, and advanced materials,” he told the groundbreaking ceremony.

“Panjin has built a 100,000-ton widened deep-water channel, a 300,000-ton crude oil wharf, and a sewage treatment plant with a treatment capacity of 60,000 tons a day to support the project,” said the Chinese daily.

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