The investment remains subject to the finalization of transaction documentation, regulatory approvals and closing conditions. The project, which presents an opportunity for Aramco to supply up to 210,000 bbl/day of crude oil feedstock, is expected to be operational in 2024. It will combine a 300,000 bbl/day day refinery and ethylene steam cracker.

Aramco said the facility will help meet the country’s growing demand for energy and chemical products. Mohammed Al Qahtani, Aramco senior vice-president of downstream, commented: “China is a cornerstone of our downstream expansion strategy in Asia and an increasingly significant driver of global chemical demand. It will further support Aramco’s broader objective of becoming a global leader in liquids-to-chemicals.”

MoU with Sinopec for Downstream

In separate news, Saudi Aramco Asia has signed a Memorandum of Understanding (MoU) with Sinopec for potential downstream collaboration in China, as well as supporting their joint venture Fujian Refining and Petrochemical in conducting a feasibility study for optimizing and expanding capacity.

The companies also operate two other joint ventures – Sinopec Senmei (Fujian) Petroleum and Yanbu Aramco Sinopec Refining in Saudi Arabia.

“The signing of this MoU will support our refinery feedstock optimization and downstream petrochemical development, while offering new opportunities to deepen and expand activity amid an accelerating global energy transition,” said Sinopec president Yu Baocai. He added that the companies’ long history has seen them cooperate in mutually beneficial crude trading, refining and chemical joint ventures, engineering services as well as science and technology research and development.

Author: Elaine Burridge, Freelance Journalist