Saudi Arabian energy giant Saudi Aramco and its Chinese partners kick-started construction of a refinery and petrochemical complex in China's northeastern Liaoning Province on Wednesday, with full operations expected by 2026. High-ranking officials from the provincial government and Aramco's senior management team attended the groundbreaking ceremony.

Here in Panjin, a coastal city known for its rich history of petroleum extraction, oil refining and petrochemicals operations, there is a solid foundation of infrastructure and talented work force which is essential to the development of the oil and gas industry.

Aramco has a 30-percent stake in the joint venture, while China North Industries Group holds a majority share of 51 percent and local company Panjin Xincheng owns the remaining 19 percent.​

The joint venture – Huajin Aramco Petrochemical Company – will build and operate the complex that will house an oil refinery which is large enough to process 300,000 barrels of crude oil per day, and a cracker with an annual petrochemical production capacity of 1.65 million tonnes of ethylene and 2 million tonnes of paraxylene. Aramco will also supply up to 210,000 barrels of crude oil per day as feedstock for the plant. The project reaffirms commitments from the Saudi Arabian energy giant in playing a key role in China's long-term energy security and high quality development.

"Saudi Aramco aims to play a key role at the heart of China's long-term energy security and high-quality development," said Amin H. Nasser, president and CEO of the company, during the China Development Forum in Beijing this month. The CEO also said that the company, the world's largest oil exporter, is progressively working on green solutions, such as advanced carbon capture and storage, and circular carbon economy technologies.

Saudi Arabia is one of China's top crude oil suppliers, while China is also central to Aramco's strategy to diversify its product offerings with more specialized high-value chemical products and reduce its reliance on use of carbon-intensive hydrocarbon. Experts say that multinational corporations have been continuing to prioritize downstream assets in China, as demand for petroleum products in the country is expected to grow along with economic recovery.

(Cover via CFP)