Saudi Arabian Oil Co (Aramco) has reaffirmed its commitment in the joint project with China North Industries Group Corp (Norinco) and Panjin Sincen to build a refining and petrochemical in Liaoning province, China. Previously, Bloomberg reported that the oil giant had suspended the $10-billion joint venture deal, but Aramco in a recent statement deemed the report inaccurate.
Aramco said that it would continue to work with its Chinese partners in the project that is in the design phase. The company noted that it would continue strengthening its position in China, including through the Liaoning project. China is currently recovering from the COVID-19 pandemic at a faster pace than other economies.
The joint venture agreement was signed when the Crown Prince Mohammed bin Salman visited Beijing in February 2019. Under the deal, Aramco, Norinco, and Panjin Sincen are set to team up and form a joint venture named Huajin Aramco Petrochemical Co. Saudi crudes are slated to make up 70% of the feedstock for the project, which includes a 300,000-bpd refinery, an ethylene cracker, and a paraxylene unit.
