China's Norinco and Saudi Aramco line up $10bln refinery plan

China's Norinco and Saudi Aramco line up $10bln refinery plan

BEIJING, May 16 (Reuters) - Chinese defence conglomerate China North Industries Group Corp (Norinco) has signed a framework agreement with state-run oil company Saudi Aramco to build a refinery and chemicals complex in northeast China, industry and government officials said on Tuesday. 

The planned projects -- including a 300,000 barrels per day refinery and an ethylene complex with annual capacity of 1 million tonnes -- are to be built at an estimated cost of 69.5 billion yuan ($10.09 billion), according to one industry official with knowledge of the agreement. 

The framework pact, which follows a memorandum of understanding in March, marks one of the high-profile agreements signed during China's Belt and Road Forum, the first summit under President Xi Jinping's ambitious plan to promote global trade and investment. 

The investment would boost Aramco's presence in China's massive refining industry, adding to its 25 percent stake in the Fujian refinery in southeast China operated by state refiner Sinopec Corp . 

Aramco could not immediately comment on the report and a Norinco representative was not immediately available for comment. 

Norinco, the state defence giant that also runs oil and gas businesses, won regulatory approval in 2015 to build the refinery and petrochemicals complex in Panjin, Liaoning province, Reuters has reported. 

Industry analysts have cast doubt over the feasibility of adding a large plant in the region, which traditionally has surplus refining capacity and is far from the main consuming regions. ($1 = 6.8856 Chinese yuan renminbi) 

? Copyright Reuters

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Saiful Islam

Structural Engineer at China railway Engineering Corporation

4 个月

I need job as a civil engineer. I have 8+ years working experience in construction site. I am from Bangladesh.. If possible give me a chance.

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Jade Chen 陈爕旭

China Source,Quality Steel Fabrication and Supply

7 年

It seems that NORINCO of China had unveiled the plan to construct this new Refinery cum Petrochemcial Complex several years back and also won regulatory approval after completing feasibility study in 2015 and why it get delay is they are not able to complete this project with its own funds and hence they have been looking for partners to join hands to acutualize this ambitious plan amid there is considerable surplus refining capacity in China mainland.. ARAMCO now are taking decisions to have stakes in this greenfield project to express its firm committment on deeping business relationship with China and SOEs besides partnering with SINOPEC to design and build Fujian Refining Complex almost one decade back. in this connection, I think we should keep close eyes on ARAMCO instead of China and think over how they place most attention in Asia market through association with PETRAMINA to invest in its new Tulban Refinery and Petrochemical Complex,alliance with PETRONAS in its RAPID project and also talks with India PSUs to involve in its ambitious strategic West Coast Mega Refinery Project.

Ethem A.

Sales and Marketing Director

7 年

CHINA IS START TO ATTACKING NEED TO SPEND MONEY FOR FUTURE

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Dinesh Kumar Jani- Ph.D

Chief Consultant & Co-ordinator: Indo-American Management Group : insight-Impulse-Intra-prom

7 年

China will ENTER any country-any project with own fund if political strategic scenario is shown.....LOBBYING stay alert-be alert-do not be a prey to

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i need job electrical engineer

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