Saudi energy giant Aramco’s trading unit Aramco Trading Company (ATC) will associate with Egypt’s Red Sea National Petrochemicals Company for long-term crude oil supplies for its planned refinery complex, with a provision for off-take of refined and petrochemical products.
Under the agreement, Aramco Trading will supply 100,000 barrels of Arabian crude per day to its Refining and Petrochemical Complex, which is expected to be built in the Suez Canal Economic Zone in Ain Sokhna. The deal will pave the way for Aramco Trading to buy products from the Red Sea, which includes polymers, olefins, liquid refined, and petrochemical products
“We are pleased to sign this agreement with Red Sea National Petrochemicals Company, a valued Oil & Gas partner. This is in line with Saudi Aramco’s strategy to maximize liquid-to-chemical conversion. We are committed to supporting the continued development of oil and gas resources in Egypt, a country which is capable of delivering technologically advanced projects of significant scale to meet the growing energy demands of the Nation and the region.”
The Red Sea National Petrochemicals Company was established to meet the needs of Egypt’s national market for refined and petrochemical products in addition to creating export opportunities for these products.
The planned petrochemical refinery is expected to have a liquid-to-chemical conversion rate of around 60-70 percent which is the main pillar in Egypt’s Ministry of Petroleum and Mineral Resource national transformation program.