The China Petroleum and Chemical Corporation (“Sinopec”), one of the top integrated energy and chemicals businesses in the world, the Saudi Arabian Oil Company (“Aramco“), and SABIC are investigating ways to work together on petrochemical and refining projects in China and Saudi Arabia.
Aramco and Sinopec, one of the biggest energy and petrochemical companies in the world, have signed a head of agreement for a greenfield project in Gulei, Fujian Province, which is expected to feature a 1.5 million ton/year petrochemical cracker complex and a 320,000 barrel/day refinery. By the end of 2025, operations are anticipated to start.
A Memorandum of Understanding (MoU) was also signed on December 15 by Aramco, SABIC, and Sinopec to examine the economic and technical viability of creating a new petrochemical complex that would be integrated with an existing refinery in Yanbu, Saudi Arabia.
Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said: “These projects represent an opportunity to contribute to a modern, efficient and integrated downstream sector in both China and Saudi Arabia. They also underpin our long-term commitment to remain a reliable supplier of energy and chemicals to Asia’s largest economy.”
The announcements strengthen Aramco’s position as China’s go-to energy supplier as it works to increase its capacity for liquids and chemicals to up to 4 million barrels per day by 2030. The partnership also supports Sinopec’s goal of developing into a premier global energy and petrochemical company that offers dependable energy and high-quality goods to improve people’s lives all around the world.