Huajin Aramco Petrochemical, a joint venture developing a 300,000 bbl/d refinery and integrated petrochemicals complex in northeast China, has received its first shipment of Saudi crude oil as it prepares to begin commercial operations, Middle East Economic Survey (MEES) reported on October 16.

Located in Panjin, Liaoning province, the project includes ethylene production capacity of 1.65 million tons per year (t/y).

Aramco holds a 30% stake in Hapco, while North Huajin, a subsidiary of China’s Norinco Group, owns 51%, and Panjin Xincheng Industrial Group holds the remaining 19%.

North Huajin General Manager Zheng Baoming said that the crude shipment marked a major milestone for the project and brought it closer to the start of operations.

The refinery had been expected to begin operations by the end of 2026, but a start-up in the first quarter (Q1) of 2027 now appears more likely.

The project supports Aramco’s strategy to expand its liquid-to-chemicals (LTC) capacity to 4 million bbl/d over the medium term. It will also secure long-term demand for the Saudi company’s crude oil.

Speaking at the seventh China Liaoning International Fair for Investment and Trade, Aramco China Managing Director Nader Al-Arfaj described the start of commissioning as a historic milestone that would further strengthen the comprehensive strategic relationship between Aramco and China.

Aramco plans to supply up to 210,000 bbl/d of crude oil to the complex, which was announced in 2023 as part of the company’s downstream expansion in China.