Saudi Aramco signed an agreement Friday to form a joint venture with NORINCO Group and PanjinSincenon to develop a fully integrated refining and petrochemical complex in the city of Panjin in Northeast China's Liaoning province.

The partners will create a new company, Huajin Aramco Petrochemical Co Ltd, as part of a project that will include a 300,000 barrel per day refinery with a 1.5 million metric tons per annum ethylene cracker and a 1.3 metric tons per annum PX unit. Saudi Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024.

According to Saudi Aramco CEO Amin Nasser, the agreement with NORINCO and Liaoning province is a clear demonstration of Saudi Aramco's strategy to move from beyond a buyer-seller relationship to one where it can make significant investments to contribute to China's economic growth and development.

"Our participation in the integrated refining and petrochemical project in Panjin will strengthen our collaborative efforts to enhance energy security, revitalize key growth sectors and industries in Liaoning, and also meet rising demand for products and goods in China's Northeast region,"he said.

There are additional plans to establish a fuels retail business, which will further integrate into the value chain. By the end of 2019, a three-party Marketing JV Company is expected to be formed between Saudi Aramco, North Huajin and Liaoning Transportation Construction Investment Group Co Ltd to develop a retail fuel stations network in target markets.