Saudi energy giant Aramco, through its wholly-owned subsidiary Saudi Aramco Asia Company (SAAC), has signed a Memorandum of Understanding (MoU) with China Petroleum and Chemical Corporation (Sinopec) for potential downstream collaboration to boost its presence in the world’s second-largest economy.
With the MoU, SAAC and Sinopec also aim to support Fujian Refining and Petrochemical Company (FREP) in conducting a feasibility study into the optimization and expansion of capacity.
“This MoU represents an exciting new chapter in our long-standing relationship with Sinopec. Such collaborations promote our downstream integration and expansion strategy in Asia and support our broader objectives of becoming a global leader in liquids-to-chemicals and a resilient and reliable supplier of one of the lowest upstream carbon intensity oils to meet China’s growing demand.”
The MoU offers a basis for continued downstream collaboration between Aramco and Sinopec, capitalizing on each company’s strengths and their long-term relationship through existing joint ventures, namely FREP and Sinopec Senmei (Fujian) Petroleum Company (SSPC) in China, and Yanbu Aramco Sinopec Refining Company in Saudi Arabia.
Mr. Yu Baocai, President of Sinopec Corporation, said, “Sinopec and Aramco enjoy a long history bookmarked by numerous examples of successful cooperation which continues to strengthen our strategic relationship. Both companies cooperate in mutually beneficial crude trading, refining and chemical joint ventures, engineering services as well as science and technology research and development. Together such collaboration represents a model of energy cooperation between China and Saudi Arabia.”
The MoU between the companies is expected to support Sinopec’s refinery feedstock optimization and downstream petrochemical development while offering new opportunities to deepen and expand activity amid an accelerating global energy transition.