China Petroleum & Chemical Corp. (Sinopec), Fujian Petrochemical Co. Ltd. (FPCL) and Saudi Arabian Oil Co. (Aramco) broke floor Monday for an built-in refining and petrochemical facility within the Chinese language province of Fujian.
The complicated is deliberate to have a crude oil refinery with a capability of 16 million tons every year (MMtpa) or 320,000 barrels a day, an ethylene unit with a 1.5 MMtpa capability, a plant to provide two million tons of paraxylene and derivatives, and a 300,000-ton petroleum terminal, in accordance with an announcement by Aramco. The companions anticipate to achieve full operation by the tip of 2030.
FPCL, a 50:50 three way partnership between Sinopec and Fujian Petrochemical Industrial Group Co., will maintain a 50 % stake within the complicated. Aramco and Sinopec will take 25 % every.
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“We are going to provide in extra of 1 million barrels per day of our crude oil to those excessive chemical conversion property in China, reinforcing Aramco’s position as a dependable and long-term accomplice in China’s improvement”, Aramco downstream president Mohammed Y Al Qahtani stated.
“This additionally advances our liquids-to-chemicals technique, by which we intend to direct extra of our crude in direction of serving to meet rising international petrochemicals demand”.
Final yr Aramco and its co-venturers in Huajin Aramco Petrochemical Co. (HAPCO) launched development for a refining and petrochemicals complicated within the Chinese language metropolis of Panjin, as introduced by the Saudi oil large Could 9, 2023. Aramco will provide as much as 210,000 barrels per day (bpd) of crude to the ability, owned by HAPCO, the place Aramco has 30 % possession. The Panjin complicated is predicted to be absolutely operational by 2026.
Earlier this yr Aramco signed offers with two Chinese language refiners laying the groundwork for potential stake acquisitions.
Signed as a part of the go to to the dominion of a delegation led by Premier Li Qiang, the agreements included “preliminary documentation referring to a Improvement Framework Settlement with Rongsheng Petrochemical Co. Ltd. (Rongsheng) and a Strategic Cooperation Settlement with Hengli Group Co., Ltd.”, Aramco stated in a press launch September 11, 2024.
“The preliminary documentation referring to a Improvement Framework Settlement with Rongsheng is linked to the potential joint improvement of an enlargement of Saudi Aramco Jubail Refinery Firm (SASREF) services”, stated the assertion on Aramco’s web site.
The brand new pact between Aramco and Rongsheng advances the Cooperation Framework Settlement they inked April, below which they plan to type a three way partnership inside SASREF. The sooner settlement offers for Rongsheng’s potential acquisition of a 50 % curiosity within the Aramco subsidiary and Aramco’s potential acquisition of a 50 % stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. Ltd.
Aramco already holds a ten % stake in Rongsheng, after final yr’s completion of an acquisition deal that entails the availability of 480,000 bpd of petroleum from the Gulf state to what Aramco stated was China’s greatest built-in refining and chemical substances plant.
Rongsheng holds a 51 % curiosity within the proprietor of the plant, Zhejiang Petroleum and Chemical Co. Ltd. The plant can course of as much as 800,000 bpd of crude and produce as much as 4.2 million metric tons of ethylene a yr.
The opposite settlement signed in the course of the Chinese language delegation’s go to “advances talks referring to Aramco’s potential acquisition of a ten % stake in Hengli Petrochemical Co. Ltd., topic to due diligence and required regulatory clearances”, Aramco stated.
“China is a vital nation in our international downstream development technique, and we stay up for constructing on a relationship that spans greater than three many years to unlock new alternatives on this essential market”, Al Qahtani stated.
In 2023 Aramco signed agreements securing talks on its bids to amass pursuits in two extra Chinese language downstream gamers. Aramco plans to have a ten % stake in Shandong Yulong Petrochemical Co. Ltd., as introduced October 11, 2023, and one other 10 % stake in Jiangsu Shenghong Petrochemical Business Group Co. Ltd., as introduced September 27, 2023.
To contact the writer, electronic mail jov.onsat@rigzone.com
