Saudi Aramco, China North Industries Corp. (Norinco), and Panjin Xincheng Industrial Group Co. Ltd recently signed the joint development agreement for the Saudi Aramco-Norinco Refining, Petrochemical and Retail Project in Panjin, in northeast China’s Liaoning province.
The project received a major boost during the visit by The Custodian of the Two Holy Mosques, King Salman Bin Abdulaziz.
HE Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources, attended the signing ceremony.
The governor of Liaoning province Mr. Chen Qiufa announced the project commencement and the joint development agreement was signed by Mr. Abdulaziz M. Al-Judaimi, Mr. Zhao Gang, and Mr. Hao Chunrong.
The project forms part of China’s petrochemical industry forward planning. It is a major project in Norinco’s aim to develop the industrial value chain, facilitating overseas oil exploration and trade, as well as growth in the petrochemical, final chemicals and specialty chemical sectors.
Having completed the environmental impact assessment and won 23 project supporting documents in less than three years, the project obtained final approval from Liaoning Provincial Development and Reform Commission.
The goal of the project is to build a world-class refining and chemical integration base, with global best practice standards of cost-saving, sustainability, and advanced technology. The construction will be based on the principles of integration, clustering development, differentiation and scale up.
The project will further promote the implementation of China’s “Belt & Road” initiative and the safe, efficient, and sustainable development of petrochemical industry in China in partnership with the globally recognized enterprise working in this field.
The project will significantly expand Saudi Aramco’s footprint in China’s downstream industry and will potentially become a key building block in both companies’ portfolios and a new landmark in the industry.