Saudi Aramco has signed a contract for $12.2 billion for the construction of a refinery in China

Saudi Aramco has signed a $12.2 billion contract for the construction of an oil refining and petrochemical complexes in China.

The construction of the plant will begin in 2026 in northeast China to meet the country's growing demand for fuel and chemicals. This refinery project will be Saudi Aramco's second major investment in petrochemicals in China. The project will cost 83.7 billion yuan, and the construction of the complex will begin after obtaining the necessary administrative permits.

It is planned that the Huajin Aramco Petrochemical Company (HAPCO) joint venture will build and operate a complex that will house an oil refinery with a capacity of 300 thousand barrels per day and a cracking plant with an annual production capacity of 1.65 million tons of ethylene and 2 million tons of paraxylene. Aramco also intends to supply up to 210 thousand barrels of crude oil per day as raw materials for the plant.

The ownership shares of the new enterprise will be divided as follows: the Chinese state-owned NORINCO group owns 51% of the joint venture, and Saudi Aramco and Panjin Xincheng own shares of 30% and 19%, respectively.

In addition to the joint project, the Saudi company also signed a memorandum of understanding with the southern Chinese province of Guangdong to explore the possibility of cooperation in energy, finance, research and innovation.