Refining & Petrochemicals Middle East
Aramco and Sinopec strengthen ties with downstream collaboration
The world’s largest energy company, Aramco, announced that it has signed a Memorandum of Understanding (MOU), through its subsidiary Saudi Aramco Asia Company Limited (SAAC) with China Petroleum & Chemical Corporation (Sinopec) for a potential downstream collaboration in the Asia’s largest economy.
This MOU provides 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, the energy giant said in a release.
Sinopec has a controlling shareholding in China Petrochemical Corporation, which is the world’s largest oil refiner and secondlargest chemical company and has been included among the top five Fortune 500 Companies over the past years.
“This MOU represents an exciting new chapter in our long-standing relationship with Sinopec,” said Mohammed Y. Al Qahtani, Aramco senior vice president of downstream.
He added 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.
Echoing similar sentiments, 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.”