A chemicals and raw materials project jointly built by China and Saudi Arabia officially began construction on Wednesday in Liaobin Coastal Economic and Technological Development Zone of Panjin, Liaoning province.
The project is jointly funded by Huajin Group, a subsidiary of China Northern Industrial Group, Saudi Aramco and Panjin Xincheng Group.It is implemented by Huajin Aramco Petrochemical Co, Ltd. and covers an area of 8.9 square kilometers with a total investment of 83.7 billion yuan.
The project will feature oil refineries with capacity for 15 million tons per year, 32 sets of process units such as ethylene and PX, and supporting utilities and auxiliary facilities, according to the group.
"The commencement of major projects is a symbol of Liaoning's efforts to achieve new breakthroughs and a microcosm of our new journey of forging ahead in a new era," Liaoning governor Li Lecheng said.
The project is expected to be completed in 2025, and annual sales revenue will exceed 100 billion yuan after it is put into production. It will drive construction for several upstream and downstream industrial chain supporting projects, forming a trend of industrial agglomeration and development featuring high-end polyolefin, new materials, new energy and other industries.
"In particular, we see a major opportunity to build a world-leading, integrated downstream sector in China, with special emphasis on the high conversion of liquids directly into chemicals as part of our broader liquid-to-chemicals business expansion plans," said Amin Nasser, president and CEO of the Saudi Aramco.
Abdulrahman Ahmed Alharbi, the ambassador of Saudi Arabia to China, said the project had become an example of pioneering cooperation under the Belt and Road Initiative.
Wang Bingsen, Party chief of Panjin, said the local government would use this project to promote the high-quality development of Panjin and place it as the critical task to realize its three-year action plan.
Wang Xiang contributed to this story.