Saudi Aramco, Sinopec strengthen ties with potential downstream collaboration in China

Saudi Aramco, Sinopec strengthen ties with potential downstream collaboration in China

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DHAHRAN, Saudi Arabia — Saudi Arabian Oil Company (Aramco) through its Saudi Aramco Asia Company Limited (SAAC) subsidiary Tuesday signed a Memorandum of Understanding (MoU) with China Petroleum & Chemical Corporation (Sinopec) for potential downstream collaboration in China.

SAAC and Sinopec also aim to support Fujian Refining and Petrochemical Company, Ltd. (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 joint ventures, namely FREP and Sinopec Senmei (Fujian) Petroleum Company (SSPC) in China, and Yanbu Aramco Sinopec Refining Company in Saudi Arabia.

Aramco Senior Vice President of Downstream Mohammed Y. Al Qahtani 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.”

Sinopec Corporation President Yu Baocai said: “Sinopec and Aramco enjoy a long history bookmarked by numerous examples of successful cooperation which continues to strengthen our strategic relationship.

“Both companies