Oil giant Saudi Aramco has signed an agreement with its Chinese partners for a $12.2 billion refinery and petrochemical complex project in northeast China, which is scheduled to begin operations in 2026.

The project in the city of Panjin in Liaoning province will be Aramco’s second major refining and petrochemicals investment in China, and the deal was signed after the world’s biggest oil exporter posted a record 2022 profit of $161 billion.

The joint venture Huajin Aramco Petrochemical Company (HAPCO) will build a refinery complex to process 300,000 barrels per day, which will annually produce 1.65 million tons of ethylene and two million tons of paraxylene, the Saudi company announced.