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Aramco is one of the world’s leading integrated energy and chemicals companies
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China Petroleum & Chemical Corporation (SINOPEC) is China’s largest oil refiner
By: Muhammad Arif, Editor NSN.Asia
Beijing: Aramco, one of the world’s leading integrated energy and chemicals companies, China Petroleum & Chemical Corporation (SINOPEC), China’s largest oil refiner, and Fujian Petrochemical Company Limited (FPCL) have entered into cooperation agreement aimed for a new integrated refining and petrochemical complex in Fujian Province of Southern China.
The facility will have a 16 million tons-per-year oil refining unit (320,000 barrels per day), a 1.5 million tons-per-year ethylene unit, a two million tons paraxylene and downstream derivatives capacity, and a 300,000 tons crude oil terminal.
According to official sources, the refining and petrochemical complex in Fujian, estimated to cost 71.1 billion yuan ($9.82 billion), also marks Saudi Aramco’s second major refining and petrochemical joint venture with a Chinese state oil major as the Middle Eastern energy company steps up cooperation with private Chinese companies.
FPCL, a 50:50 joint venture between SINOPEC and Fujian Petrochemical Industrial Group Company, will own a 50 percent stake in the complex, with Aramco and SINOPEC each taking a 25 percent stake. The project is expected to be fully operational by the end of 2030.
Ma Yongsheng, SINOPEC Chairman, said that, “Both SINOPEC and Aramco are committed to promoting the high-quality development of the petroleum and petrochemical industry. Aramco’s participation supplies long-term reliable and competitive feedstock for the project and further boosts the healthy development of Gulei Petrochemical Base. Successful cooperation in this project marks a new milestone in the China-Saudi all-weather strategic partnership, with a focus on greater domestic circulation and in line with the dual circulation strategy.
Earlier in September 2024, Aramco signed a five-year Cooperation Framework Agreement (CFA) with the China National Building Material Group Co., Ltd. (CNBM).
Under the partnership, the companies will explore a range of areas for potential cooperation. This includes development of manufacturing facilities in Saudi Arabia to produce wind turbine blades, hydrogen storage tanks, lower-carbon building materials, and energy storage solutions.
Additionally, it will include a potential new center for training, inspection and accreditation, as well as a proposed joint technology development center and laboratory to foster innovation.
Zhou Yuxian, Chairman – CNBM, stated “We attach great importance to strategic cooperation with Aramco. This agreement combines CNBM’s and Aramco’s respective strengths with the goal of win-win cooperation. CNBM is seeking to promote a low-carbon transition through the nonmetallic materials industry. By leveraging our work in low-carbon integrated solutions, CNBM aims to complement Aramco’s efforts to advance the materials transition. This agreement envisages a wide range of cooperation that has potential to positively contribute to low-carbon development, while supporting further strategic alignment between China and the Kingdom of Saudi Arabia.”
Wail Al Jaafari, Aramco EVP of Technical Services, commented that, “We look forward to expanding our efforts with CNBM as we pursue new breakthroughs in materials science that have potential to deliver tangible benefits for the building sector and beyond. From developing solutions that could reduce construction emissions to innovations that enhance product performance, our goal is to help drive the materials transition. By combining Aramco’s expertise in nonmetallic materials and CNBM’s industry know-how, we aim to identify groundbreaking advances and new business opportunities, as well as promote further development of manufacturing capabilities within the Kingdom of Saudi Arabia.”
This agreement extends Aramco’s existing relationship with CNBM and follows the 2021 establishment of the Nonmetallic Excellence and Innovation Center for Building Materials (NEXCEL), in Beijing, by Aramco and the China Building Materials Academy (CBMA), the science and technology branch of CNBM.
These cooperation agreements between the Kingdom of Saudi Arabia and key Chinese partners reinforce Aramco’s ongoing contribution to China’s long-term energy security and development, support China’s participation in Saudi Arabia’s economic growth, and foster collaboration in new technology development.
At the groundbreaking ceremony: Aramco Downstream President Mohammed Y. Al Qahtani (L8), Aramco Executive Vice President of Products & Customers Yasser Mufti (R2), Aramco Asia President Saleh Zaid (L3), Secretary of the CPC Fujian Provincial Committee and Chairman of NPC Standing Committee Zhou Zuyi (R8), Chairman and Secretary of the Leading Party Member Group of Sinopec Group Ma Yongsheng (R7), President and Deputy Secretary of the Leading Party Members Group of Sinopec Group Zhao Dong (L7), and Chairman of Fujian Petrochemical Company Limited Zhang Xiguo (R1).
