MOSCOW (MRC) -- Saudi Aramco and China Petroleum and Chemical Corporation (Sinopec) have signed a deal to build a refinery and a petrochemicals plant in China, said Chemindigest.
The 3,20,000 barrels-per-day refinery and 1.5 million tons-per-year petrochemical cracker complex will be in operation by the end of 2025, Aramco said in a statement on Sunday.
Aramco and Sinopec, along with Saudi Basic Industries Corporation (Sabic), have also signed a an agreement to study the feasibility of developing petrochemicals complex to be integrated with an existing refinery in Yanbu, Saudi Arabia. Petrochemicals are set to account for more than a third of the growth in oil demand to 2030, and about half to 2050, ahead of the lorry, aviation and shipping sectors, according to the International Energy Agency.
Petrochemicals are also likely to consume an additional 56 billion cubic metres of natural gas by 2030. Aramco aims to increase its liquids-to-chemicals capacity to up to four million barrels per day by 2030. China, the world’s second-largest economy and the biggest crude importer, has been signing long-term agreements with energy exporters amid rising volatility in crude and natural gas prices. The petrochemicals industry is expected to be a big driver of crude oil demand in the next few decades as consumers switch to electric vehicles.
As per MRC, Saudi Aramco and TotalEnergies have made a final investment decision (FID) about the construction of a petrochemicals complex in Saudi Arabia which will include a 1.65m tonne/year ethylene cracker. The complex will comprise a mixed feed cracker as well as two polyethylene (PE) units and a butadiene (BD) extraction unit, plus “other associated derivatives” units. TotalEnergies said capital expenditure (capex) for the project was around USD11bn.