Aramco, Sinopec and SABIC partner for petrochemical project in Yanbu

Saudi Aramco, China Petroleum and Chemical Corporation (Sinopec) and SABIC have signed a Memorandum of Understanding (MoU) on December 15, to study the feasibility of developing a new petrochemical complex.

The new complex is to be integrated with an existing refinery in Yanbu, Saudi Arabia.

The three entities are exploring collaboration across refining and petrochemical projects in China and the kingdom. Aramco and Sinopec have signed a 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 commence operations by the end of 2025.

We expand our refining and petrochemical cooperation with @SinopecNews and @SABIC#aramco

— aramco (@aramco) December 18, 2022

“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,” said Mohammed Y. Al Qahtani, Aramco senior vice president of downstream.

The announcements support Aramco’s role as an energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to four million barrels per day by 2030.