Significant Progress on $12 Billion Petrochemical Complex

A joint venture involving Saudi oil giant Aramco has made substantial progress on the construction of a major petrochemical and fine chemicals project in China. According to recent reports, nearly 60 percent of the work on the $11.5 billion Huajin Aramco Petrochemical Company (HAPCO) project has been completed. The large-scale complex, covering approximately 8.97 square kilometers, began construction in 2023 and is poised to become a significant global hub for petrochemical and fine chemical production. The update was provided by China’s state-backed Xinhua news agency, which emphasized the project’s potential to enhance the region’s industrial capabilities.

Strategic Partnership and Investment Breakdown

The HAPCO project is the result of a strategic collaboration between three major entities: Aramco, which holds a 30 percent stake, NORINCO Group with 51 percent, and Panjin Xincheng Industrial Group owning 19 percent. Aramco, a publicly traded Saudi company, first disclosed details of this venture in March 2023, highlighting its significance in expanding the company’s presence in the Chinese market. The integrated refinery and petrochemical complex is being developed in northeast China and aims to strengthen the supply chain for refined chemicals and materials. The project is part of a broader initiative to enhance energy security and industrial cooperation between the involved parties.

Operational Timeline and Expected Impact

The HAPCO project will house a 300,000-barrels-per-day refinery, along with advanced facilities for chemical production. Once completed, the complex is expected to produce 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene annually, catering to the growing global demand for these essential petrochemical components. The entire facility is projected to be fully operational by 2026. Industry experts believe that the completion of this project will significantly contribute to the expansion of China’s petrochemical sector while reinforcing trade and industrial ties between Saudi Arabia and China. With its advanced infrastructure and high production capacity, the HAPCO complex is set to become a cornerstone of petrochemical development in the region.