The Saudi Arabian Oil Company (Aramco), one of the world’s leading integrated energy and chemicals companies, SABIC, the leading chemical manufacturing firm, and China Petroleum and Chemical Corporation (Sinopec) are exploring collaboration across refining and petrochemical projects in China and Saudi Arabia.
Aramco and Sinopec have signed heads of agreement for a greenfield project in Gulei, Fujian Province, which plans to include a 320,000 barrels-per-day refinery and 1.5 million tons-per-year petrochemical cracker complex. It is expected to start operations by the end of 2025.
Mr. Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said that “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.”
Recently, Aramco, SABIC, and Sinopec signed a Memorandum of Understanding (MoU) to study the economic and technical feasibility of developing a new petrochemical complex to be integrated with an existing refinery in Yanbu, Saudi Arabia.
According to the statement, “The announcements support Aramco’s role as a reliable energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.”
The collaboration also aligns with Sinopec’s vision to become a world-leading energy and petrochemical corporation, providing quality products and reliable energy to benefit the lives of people worldwide.
Earlier this month, Saudi Aramco and China’s coal-mining enterprise, Shandong Energy Group, collaborated to explore integrated refining and petrochemical opportunities in China. The MoU between them includes a potential crude oil supply agreement and chemicals products offtake agreement, supporting Aramco’s role in building a thriving downstream sector in Shandong Province.