Saudi Aramco and its local partners have received the first crude cargo for their new refining and petrochemical complex in Panjin, Liaoning province, bringing the plant a step closer to production, Aramco said in a statement on Wednesday. The Arabian crude was discharged by the tanker Kassab, loaded at the Juaymah terminal in the Gulf, according to Kpler data cited in the release.
The complex, operated by the Huajin Aramco Petrochemical Company joint venture, combines a 300,000 barrel a day refinery with a petrochemical plant producing 1.65 million metric tons of ethylene and 2 million tons of paraxylene a year. Aramco holds 30 percent of the venture, alongside North Huajin Chemical Industries Group, part of Norinco Group, and Panjin Xincheng Industrial Group. North Huajin’s general manager Zheng Baoming said the cargo’s arrival marks a major milestone toward the start of operations. Energy Aspects expects commercial operations in the first quarter of next year.
The timing is pointed. China has been cushioning the Iran war’s impact by reducing crude imports, drawing stockpiles and temporarily suspending fuel exports. A refinery built around Arabian feedstock, with Aramco previously committed to supply up to 210,000 barrels a day, gives Saudi Arabia a structural outlet in its largest market at a moment when spot Chinese buying has been unreliable.
For the products balance, another 300,000 barrels a day of Chinese refining capacity arriving in early 2027 adds to the supply side of the diesel equation the IEA addressed on Wednesday, though a single start-up will not rebuild the stocks the agency says will stay short into the second half of 2027.