HAPCO Refinery Receives First Saudi Crude Oil Cargo

Huajin Aramco Petrochemical Company (HAPCO) received its first cargo of Arab crude oil at its refinery in Panjin City, China. The facility, a joint venture between Saudi Aramco, NORINCO Group, and Panjin Xincheng Industrial Group, features a processing capacity of 300,000 barrels per day and includes a petrochemical plant for ethylene and paraxylene production.

Under the terms of the agreement, Saudi Aramco will provide up to 210,000 barrels per day of crude feedstock. While the refinery was originally expected to be operational in 2026, the company now projects commercial operations to begin in the first quarter of 2027.

This delay stems from Middle East crises and the closure of the Strait of Hormuz, which disrupted standard delivery routes. These geopolitical disruptions forced Saudi Arabia to increase its crude oil exports via the port of Yanbu to maintain supply chains.