This photo taken on March 29, 2023 shows the groundbreaking ceremony of a major chemical project, a joint investment initiative by China and Saudi Arabia, in Panjin City of northeast China's Liaoning Province. The total investment of the project is 83.7 billion yuan (about 12.2 billion U.S. dollars), of which Saudi Aramco holds a 30 percent stake while the North Huajin Chemical Industries Group Corporation and Panjin XinCheng Industrial Group hold 51 and 19 percent, respectively.(Photo: Xinhua)
The joint venture between China and Saudi Arabia for a fine chemicals and raw materials project worth 83.7 billion yuan ($12.2 billion) commenced in Panjin, Liaoning Province, Northeast China on Wednesday.
This project is a major green and low-carbon initiative in the petrochemical sector and is being implemented under China's Belt and Road Initiative (BRI).
The deal was signed over the weekend for a major integrated refinery and petrochemical complex with its Chinese partners. The project will involve a 300,000 barrel per day refinery and a 1.65 million ton steam cracker, according to
a company statement seen by the Global Times on Monday.
The project will be developed by Huajin Aramco Petrochemical Company. Saudi Aramco holds a 30 percent stake, Norinco Group holds a 51 percent stake, and Panjin Xincheng Industrial Group holds a 19 percent stake in the venture, according to a statement on Saudi Aramco's website.
As a major project under the BRI, it has a significant meaning in promoting the comprehensive strategic cooperation between the two sides on top of deploying strategic layout of key national industries and enhancing international cooperation in the energy sector, according to China Media Group.
"This complex is a cornerstone of our efforts to support a world-class, integrated downstream sector here in China," said Mohammed AI Qahtani, executive vice president of Saudi Aramco, at the groundbreaking ceremony.
The project will generate an annual income of over 100 billion yuan, with a total profit of more than 10 billion yuan and tax revenue of over 20 billion yuan after completion," said Yan Zhe, deputy general manager of Norinco Group, according to Xinhua.
Panjin has built a 100,000-ton widened deep-water channel, a 300,000-ton crude oil wharf, and a sewage treatment plant with a treatment capacity of 60,000 ton a day to support the project, according to Xinhua.