Saudi Aramco through its Saudi Aramco Asia Company (SAAC) subsidiary signed a MoU with China Petroleum & Chemical Corporation (Sinopec) for potential downstream collaboration in China, said Hydrocarbonprocessing.
SAAC and Sinopec also aim to support Fujian Refining and Petrochemical Company (FREP) in conducting a feasibility study into the optimization and expansion of capacity. 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 JVs, namely FREP and Sinopec Senmei (Fujian) Petroleum Company (SSPC) in China, and Yanbu Aramco Sinopec Refining Company in Saudi Arabia.
Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said: “This MoU represents an exciting new chapter in our long-standing relationship with Sinopec. 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."
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. 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."
As per MRC, Sinopec revealed it has completed the construction of China's first megaton CCUS project, the Qilu-Shengli Oilfield CCUS. The project will reduce carbon emissions by 1 MMtpy. As China's largest full industrial chain CCUS demonstration base and industry benchmark, the Project is estimated to increase the oil production by 2.965 MMt in the next 15 years. It's of great significance to China's scaled development of CCUS and building an "artificial carbon cycle" model to increase China's carbon emissions reduction capabilities as the country advances to achieve the "dual carbon" goals of reaching peak carbon emissions by 2030 and carbon neutrality by 2060.
Sinopec has set up a separate company to work on projects in the field of alternative energy sources. The authorized capital of the company, which received the name Zhongshihua Xiongan Xinnenyuan (Zhongshihua Xiong'an Xinnengyuan), amounted to 100 million yuan (USD15.7 million). Li Yutian has been appointed as its legal representative.
Earlier it was reported that SIBUR, the largest petrochemical complex in Russia and Eastern Europe, and the Chinese petrochemical giant - Sinopec - raised project financing for the Amur Gas Chemical Complex (GCC) from a syndicate of international, Chinese and Russian banks for a total of USD9.1 bn.
MRC