(Yicai Global) March 27 -- Saudi Aramco, the world's top crude oil producer, said its Chinese joint venture will begin construction on a major integrated refinery and petrochemical complex in China's northeastern Liaoning province in the next quarter.

Huajin Aramco Petrochemical, set up in 2019 by Aramco, China North Industries Group Corporation, or Norinco, and Panjin Xincheng Industrial Group, will oversee construction of the facility after securing administrative approvals, the Dhahran-based firm announced yesterday. The project will likely be fully operational by 2026, it noted.

Announced on March 10 last year, the giant complex will have a refining capacity of 300,000 barrels of oil a day, with the Saudi petroleum and natural gas giant supplying 70 percent of it, Aramco said. It will also include a petrochemical plant with an annual capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene, according to the company.

“This important project will support China's growing demand across fuel and chemical products," said Mohammed Qahtani, an executive vice president at Aramco. “It also represents a major milestone in our ongoing downstream expansion strategy in China and the wider region, which is an increasingly significant driver of global petrochemical demand.”

Aramco owns 30 percent of Huajin Aramco. Chinese state-owned equipment giant Norinco has a 51 percent stake, and Panjin Xincheng, a building contractor backed by the local government of Panjin city in Liaoning, owns the rest.

Editor: Martin Kadiev