Saudi Arabia鈥檚 energy giant Aramco signed a 83.7 billion yuan ($12.2 billion) deal with two Chinese partners for the construction of an integrated refinery and petrochemical complex in northeast China, Aramco announced in a statement on Sunday.
The deal came while Aramco President Amin Nasser was in China to attend the China Development Forum (CDF).
During his keynote speech, Nasser discussed Aramco鈥檚 key role at the heart of China鈥檚 long-term energy security and development.
"We want to be an all-inclusive source of energy and chemicals for China鈥檚 long-term energy security and China鈥檚 high-quality development 鈥� to the horizon, and even beyond," Nasser said.
The agreement was signed through Huajin Aramco Petrochemical Company, a joint venture between Aramco, which will hold a 30% stake, the Norinco Group with a 51% stake, and Panjin Xincheng Industrial Group with a 19% interest.
The construction of the complex will combine a refinery with a capacity of 300,000 barrels per day and a petrochemical plant with an annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene.
The construction is set to begin in the second quarter of 2023 after receiving the necessary administrative approvals, and it is projected to be completely operational by 2026.
Aramco will supply up to 210,000 barrels per day of crude oil feedstock to the complex, which is being built in Panjin, Liaoning Province, China.
"This important project will support China鈥檚 growing demand across fuel and chemical products," Mohammed Al Qahtani, Aramco executive vice president of downstream, was quoted as saying in the statement.
Al Qahtani also added that the deal represents "a major milestone" in Aramco鈥檚 ongoing downstream expansion strategy in China and the wider region, which is an increasingly significant driver of global petrochemical demand.
Zou Wenchao, NORINCO group deputy general manager, said the large-scale refinery and petrochemical complex project "is a key project of the Norinco Group to implement and realize the joint development of the high-quality Belt and Road initiative, promote industrial restructuring, and enhance the oil and petrochemical sector to become stronger, better and larger."
"It will play an important role in deepening economic and trade cooperation between China and Saudi Arabia, and achieving common development and prosperity," Wenchao said.
Jia Fei, chairman of Panjin Xincheng, emphasized the significance of the deal for Panjin in terms of developing chemicals and specialty products, as well as enhancing the integration of the refining and chemical industries.
By Sibel Morrow
Anadolu Agency