The ambitious $11.5 billion fine chemicals and raw materials project, spearheaded by the Huajin Aramco Petrochemical Company (HAPCO), has reached a crucial milestone, with construction work nearing 60% completion, according to Zawya news. This landmark project, a collaborative effort between Saudi Aramco and Chinese partners, is poised to become a global hub for the petrochemical and fine chemical industry.

The project, sprawling across 8.97 square kilometers in northeast China, commenced construction in 2023 and is on track for completion by 2026. State-backed Xinhua news agency highlighted the rapid progress, underscoring the strategic importance of this venture for both Saudi Arabia and China.

The core of the HAPCO project is an integrated refinery and petrochemical complex. This complex will feature a 300,000 barrels per day refinery, capable of processing crude oil into various refined products. Complementing the refinery is a state-of-the-art petrochemical plant with an annual production capacity of 1.65 million metric tonnes of ethylene and 2 million metric tonnes of paraxylene. These key petrochemical feedstocks are essential for producing a wide range of downstream products, including plastics, synthetic fibers, and resins.

HAPCO is a joint venture that brings together the expertise and resources of key players in the energy and industrial sectors. Saudi Aramco holds a 30% stake, while NORINCO Group, a major Chinese defense and industrial conglomerate, owns 51%. Panjin Xincheng Industrial Group, a local entity, holds the remaining 19 percent. This partnership reflects a deepening of economic ties between Saudi Arabia and China, aligning with both nations' strategic goals for industrial diversification and energy cooperation.

The strategic location of the complex in northeast China is intended to serve the growing demand for petrochemical products in the region and beyond. The project is expected to boost local economies, create numerous jobs, and stimulate further industrial development in the area.

Saudi Aramco's involvement in HAPCO underscores its commitment to expanding its downstream presence in key markets and diversifying its portfolio beyond crude oil production. By partnering with Chinese entities, Aramco aims to secure access to China's vast market and leverage its technological capabilities.

The project's progress is a testament to the collaborative spirit and efficient execution of the joint venture partners. As the construction nears completion, anticipation is building for the complex to commence full operations in 2026. Upon operational launch, the HAPCO project is expected to significantly contribute to the global petrochemical supply chain, strengthening the strategic partnership between Saudi Arabia and China. The development also highlights the growing trend of international collaboration in large-scale industrial projects, which are essential for driving economic growth and technological advancement in the 21st century.