Aramco in China: First Crude Cargo Arrives at HAPCO Refinery

Aramco in China: First Crude Cargo Arrives at HAPCO Refinery In Brief: The first crude cargo from Saudi Arabia, shipped from the Ju'aymah export terminal, has arrived at the HAPCO integrated refining and petrochemical complex in Liaoning Province, China, a major step forward for the joint project between Aramco and its Chinese partners. The complex, with a daily refining capacity of 300,000 barrels of oil, has an annual output of 1.65 million tons […]

The first shipment of Saudi crude oil, sent from the export port of "Jeima" to the Hopco integrated refinery and petrochemical complex in Liaoning Province, China, so that this joint project between Aramco and Chinese partners will take an important step forward.

This complex, with a daily refining capacity of 300,000 barrels of oil, has planned an annual production of 1.65 million tons of ethylene and 2 million tons of paraxylene, and it has been targeted to start its commercial operation in the first quarter of 2027.

These developments take place in a situation where the Chinese government implemented measures such as reducing crude oil imports, using existing reserves and temporarily stopping fuel exports to ensure security of supply and balance of the domestic market, at the same time as regional tensions and the war between the United States and Iran.

Saudi Arabia's Aramco has completed a major milestone in its multibillion-dollar investment in Liaoning Province in northeastern China. Necessary measures to prepare this integrated facility, under the joint investment of "Hapco", continue in line with production. The company announced today (October 14) that the crude oil sent from Saudi Arabia arrived at the project site late last week.

The refinery complex, developed by Saudi Aramco and Chinese partners, has entered a new phase of preparations for commissioning, with the completion of the first delivery of crude oil. The complex, which is being built in Liaoning province, will combine crude oil processing and petrochemical production in one facility, which is in line with the ongoing energy and industrial cooperation between Saudi Arabia and China.

The arrival of the first shipment of Saudi Arabian crude oil to this facility is an important milestone in the transition of the HAPCO project to commercial production. However, Aramco's statement did not specify an exact date for the start of operation of these facilities.

Petrochemical refining and production capacity in the new complex

This refinery in China will process 300,000 barrels of oil per day. This complex, which will be established as a part of Hapco's joint venture, will include high-capacity refinery and petrochemical production units.

The daily crude oil processing capacity of this refinery is planned to be 300,000 barrels. This means that this facility can process approximately 109.5 million barrels of crude oil per year. Also, the petrochemical department of this complex will have the annual production capacity of 1.65 million tons of ethylene and 2 million tons of paraxylene. Ethylene is one of the basic raw materials in the production of plastic and chemical products, and paraxylene is used as an intermediate product, especially in the polyester and petrochemical industries.

Hopco refinery is expected to be operational in 2027. The first quarter of 2027 is targeted for the start of commercial operation of this project, and according to the schedule included in the October assessments, these facilities are expected to start their commercial operations between January and March. Despite this, Aramco has not yet announced a firm launch date, but experts consider the first delivery of crude oil a key advance in pre-production preparations.

Saudi Aramco's Chinese partners include North Huajin Chemical Industry Group and Panjin Xincheng Industrial Group. Zheng Baoming, General Manager of North Huajin Chemical Industry Group and Deputy Secretary of the Party Committee, stated that the completion of the first shipment of crude oil is an important step to bring the facility closer to the operational stage. The goal of Hopco's joint venture is the integrated implementation of production in the fields of refining and petrochemicals.

Details of oil cargo transportation by Kasab tanker

The first oil cargo was transported by the oil tanker "Kassab" by sea. This cargo was sent from the port of "Jeimah" on the coast of Saudi Arabia in the Persian Gulf, and after sea transfer, it was unloaded at the Liaoning facility in China. Jaimeh port is one of the key export areas of Saudi Arabia for international oil cargoes, and the shipment of this cargo by Kassab oil tanker was officially registered under the name of HAPCO project.

China's actions in the energy market coincide with regional developments

Aramco's new investment comes as China implements measures to ensure security of supply in the energy market. As regional tensions and the US-Iran war continue, the effects of this conflict on oil trade and international energy shipments continue.

In response to these developments, the Chinese government has implemented measures such as reducing crude oil imports, using existing reserves, and temporarily stopping fuel exports to ensure supply and balance in the domestic market in order to limit the impact of international market disruptions on the domestic economy.

Energy relations between Saudi Arabia and China go beyond crude oil trade and include extensive investments in refining and petrochemical facilities. The integrated complex in Liaoning is a new model of partnership for processing Saudi oil and turning it into petrochemical products in China, and as mentioned, with the start of its full operation, 300,000 barrels of new processing capacity per day will be added to China's refinery infrastructure.