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Saudi Aramco in deal to set up China refining JV

JEDDAH, February 23, 2019

Saudi Aramco said it has signed an agreement with top industrial groups, Norinco Group and Panjin Sincen, to set up a joint venture for developmengt of a fully integrated refining and petrochemical complex at Panjin in the Liaoning province of China.
 
The partners will create a new company, Huajin Aramco Petrochemical Company as part of a project that will include a 300,000 barrels per day refinery with a 1.5 million metric tonnes per annum (mmtpa) ethylene cracker and a 1.3 mmtpa PX unit. 
 
Saudi Aramco will supply up to 70 per cent of the crude feedstock for the complex, which is expected to start operations in 2024.
 
Saudi Aramco CEO, Amin Nasser said: "Our agreement with Norinco and the Liaoning province is a clear demonstration of our strategy to move from beyond a buyer-seller relationship, to one where we can make significant investments to contribute to China’s economic growth and development."
 
"Our participation in the integrated refining and petrochemical project in Panjin will strengthen our collaborative efforts to enhance energy security, revitalize key growth sectors and industries in Liaoning and also meet rising demand for products and goods in China’s Northeast region," he noted.
 
There are additional plans to establish a fuels retail business, which will further integrate into the value chain. 
 
By the end of 2019, a three-party Marketing JV Company is expected to be formed between Saudi Aramco, North Huajin and Liaoning Transportation Construction Investment Group Company to develop a retail fuel stations network in the target markets.-TradeArabia News Service



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