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.”

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